Lauterbach wants to relax fixed prices in the fight against drug shortages
Berlin Health Minister Karl Lauterbach wants to eliminate the shortage of medicines by partially eliminating fixed prices and reforming discount contracts. In the future, price increases of 50 percent on certain drugs should be possible, according to a draft of the Ministry of Health that was disseminated on Tuesday.
In addition, an early warning system to identify impending delivery bottlenecks is planned. Pharmaceutical associations immediately criticized the project.
Lauterbach presented key points in December as to how the shortage of medicines, especially for children, can be remedied. However, according to government circles, work on the draft law had been delayed within the traffic light coalition due to resistance from the FDP-led Ministry of Justice, for example. According to Lauterbach, the aim of the paper was also to bring part of the drug production back to Germany and Europe, even if this entailed price increases.
Additional expenditures in the millions for health insurance companies
Measures to improve the supply of pediatric medicines are likely to result in additional annual expenditure of 160 million euros for the statutory health insurance funds.
The draft bill mentions several hundred million euros in additional costs for statutory health insurance, but also a one-off amount of around 100 million euros for hospitals and pharmacies serving hospitals, which should stock more medicines.
The reason for the supply problems is, among other things, that the health insurance companies have so far been urging the purchase of patent-free generics to select the cheapest provider. This led to dependence on a few, cheaper suppliers in Asia.
Lauterbach therefore wants to create a list of medicines, especially for the treatment of children up to the age of twelve, as the core of the reform. For these, the federal government can lift the price fixing of the health insurance companies, so that the price can then be increased by up to 50 percent from the last applicable fixed amount.
Lauterbach therefore wants to create a list of medicines, especially for the treatment of children up to the age of twelve, as the core of the reform.
(Photo: IMAGO/Chris Emil Janssen)
In the case of discount agreements, it should also be taken into account whether active ingredients are manufactured “close to supply within the EU or in the contracting states of the European Economic Area”. This is intended to ensure long-term needs-based care even in times of crisis.
Industry protests
The pharmaceutical industry criticized the draft. “A comprehensive approach to improving the situation looks different. Selective corrections and additional burdens for the manufacturers are not a solution to the major challenges,” explained Hubertus Cranz, General Manager of the Federal Association of Drug Manufacturers (BAH). “They will not lead to a reduction in dependencies and increased security of supply.” There is a complete lack of a comprehensive review of the tendering practice for discount agreements.
The industry association Pro Generika criticized the fact that the draft law initially only tackles the seizure of cancer drugs and antibiotics. “However, these together make up just 1.1 percent of all medicinal products (…). I wonder: how does the policy of a diabetic patient explain that her care needs to be less reliable than that of someone else?” explained Pro-Generika Managing Director Bork Bretthauer.
>> Read here: Ethics Council chief Buyx on ChatGPT in medicine: “I get very euphoric”
The measures would have to apply to all generics to prevent other companies from dropping out of production.
More: More than a million deaths every year: Europe takes up the fight against resistant germs
