Germany Votes to Break Up Drug Company Pricing Monopolies
Posted Nov 11 2010 8:11am
According to this Bloomberg article, the prices that are negotiated with German insurance companies also stand to set a guide for other countries as well. Germany in essence is fighting the same thing we are here with higher priced drugs that are becoming non affordable. Within the year’s time given, if no agreements are determined on price, the Health Ministry will do it for them. This rule is for drugs that have not either been approved or are not for sale yet.
Germany has also recently increased health insurance premiums back in July as part of their overhaul for healthcare. BD
Drugmakers face more than 2 billion euros ($2.76 billion) in price cuts in Germany, their biggest market in Europe, after lawmakers in Berlin approved the first controls on the cost of innovative medicines.
The law, backed by the lower house today, gives companies a one-year window to negotiate prices with insurers after introducing new drugs, potentially affecting Novartis AG ’s multiple sclerosis treatment Gilenya and AstraZeneca Plc ’s blood thinner Brilinta among other medicines that haven’t been approved yet in Europe. If no agreement is reached, the Health Ministry would set a maximum price, and the drugs would undergo a cost-benefit analysis by a semi-state agency.