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Special Report: Pharmaceutical Pricing and Reimbursement in Germany, 2008
Decision Resources, Inc., March 2008, Pages: 70
Introduction
Over the past two decades, the German pharmaceutical market has undergone a greater number of radical reforms than any other major drug market. With the German government exerting pressure on all sectors of the pharmaceutical market, the resulting reimbursement and prescribing restrictions continue to place a considerable burden on drug manufacturers. The result of such cost-containment mandates has led pharmaceutical companies
to seek greater control of their destiny by establishing innovative systems to handle all aspects of the country’s reimbursement restrictions. This report features several illustrated tables that provide an overview of the country’s health care reform initiatives and the fi nancial impact such reforms have had on the pharmaceutical industry over the last two decades.
Get the Answers You Need to Shape Your Strategy
- Pharmaceutical companies seeking to do business in Germany must contend with many cost controls imposed by the government. How will manufacturers deal with these increasingly restrictive cost controls in the coming years? What new reimbursement deals will companies attempt in order to secure market access?
- Manufacturers of novel—or potentially risky—therapies will undoubtedly face vexing barriers to market access. What new restrictions will the country’s governing agencies introduce in this market? What strategies will companies explore to overcome these restrictions?
- The German government will continue to rely heavily on its most enduring cost control—reference pricing. How will the probable expansion of this cost-containment system affect patent-protected agents in the new few years?
Scope
- The German government will overhaul the funding of the German health care system in January 2009: statutory health insurance funds will no longer be free to set their own premium rates; governmental reforms, which are often partisan, have stymied the pharmaceutical industry as it struggles to keep up with the frequency of such reforms.
- Reference pricing is the country’s most enduring cost-containment strategy: drug manufacturers object to a system whereby health insurance funds are responsible for setting reference prices for the products they reimburse; from 2005 through 2008, the government has expanded considerably the list of reference-priced products; a 2006 change in the method by which reference prices are calculated has resulted in substantially lower reference prices.
- Reimbursement of hospital medicines is based on a diagnosis-related group system that began in 2004: a key objective is to shorten the length of hospital stays; the new system presents the pharmaceutical industry with both opportunities and challenges.
- Off-label prescribing is a controversial subject in Germany: reimbursement of off-label therapy must meet specifi c requirements; drugs used off label in clinical trials must satisfy legal requirements; physicians can face substantial fi nes for improper off-label prescribing.
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