Proposal advocates for transformation in healthcare sector through introduction of novel pharmaceuticals - Recommended adjustments in the healthcare system to accommodate cutting-edge pharmaceutical solutions
Germany's health care system faces potential strain due to rising costs of innovative drugs, according to a new report issued by a panel of experts. The report suggests a "learning healthcare system" to address this issue, focusing on the collection, evaluation, and utilization of data on the efficacy and benefits of novel medications for price negotiations.
Dr. Michael Hallek, an oncologist and member of the expert council, stated during a press conference, "We aim to demonstrate means for patients to continue receiving innovative therapies and costly medications in the future." The discussions revolved around re-evaluating the pricing mechanisms for these innovative medicines.
According to the report, the average price of a newly patented medication was approximately €1,000 15 years ago, and it has since hovered around €50,000. Health Minister Nina Warken (CDU) noted that the share of expenditure on medications in health insurance increased by ten percent last year, vastly outpacing overall costs.
The experts warn that medical advancements are likely to lead to an influx of high-priced medications for larger patient groups in the future, potentially leading to an overburdening of the system. As such, the report recommends modifications to the present system, including the regular evaluation and use of findings on the effects and benefits of innovative medicines for renegotiating prices.
The price negotiations are primarily based on the additional benefit of innovations compared to a "suitable comparator therapy." The experts propose automatic price adjustments for new medicines if the costs for the comparator therapy decrease.
The prices for medicines with new active ingredients are negotiated between pharmaceutical companies and the health insurance association. If no agreement is reached, a mediating body decides, a decision that the health insurance must accept. The report acknowledges that pharmaceutical companies negotiate from a position of strength, as they can withdraw the drug at any time, leading to the recommendation that the health insurance should also have the option to terminate negotiations.
Health economist Leonie Sundmacher, another member of the expert council, discussed the importance of maintaining the competitiveness of the pharmaceutical industry, which she described as having significant economic importance. Targeted support for the industry is essential, she said, addressing politics. She mentioned potential measures such as relief from unnecessary bureaucracy and tax-funded support programs.
Warken addressed the topic as "very difficult." She emphasized the need to strike a balance between providing prompt access to new medicines for those affected, reinforcing Germany's pharmaceutical sector, and keeping an eye on expenditures, particularly in light of potential premium increases.
The pharmaceutical industry association Pharma Germany underscored the influence of medication pricing on the future level of investments in research and development in Germany. They argued, "Those who want innovations must make research and development possible," stressing the need for a reliable economic foundation, including a fair and innovation-friendly pricing system, to achieve this goal.
The association criticized the report for lacking a broader perspective, stating that the views of those not directly involved in bearing costs were "strongly underrepresented" or entirely absent.
- The report on Germany's health care system, focusing on rising costs of innovative drugs, suggests a "learning healthcare system" that emphasizes the collection, evaluation, and utilization of data on the efficacy and benefits of novel medications, especially in EC countries.
- In light of the potential strain on the health care system caused by high-priced medical-conditions treatments, the experts propose modifications to the present system, including regular evaluation and use of findings on the effects and benefits of innovative medicines for renegotiating prices.
- Health economist Leonie Sundmacher, a member of the expert council, emphasized the importance of maintaining the competitiveness of the pharmaceutical industry, which significantly contributes to finance and business, and proposed targeted support for the industry, such as relief from unnecessary bureaucracy and tax-funded support programs.
