Study: Drug Rebate Increases Could Harm German Economy
A new report from the BASYS Institute warns that increasing mandatory rebates on patented pharmaceuticals could cause significant economic damage to Germany.
A new economic assessment from the BASYS Institute suggests that the German government's plans to increase mandatory rebates on patented drugs could be detrimental to the economy in the long run. The report, released in response to proposals from the German statutory health insurance (GKV) finance commission, emphasizes that the proposed austerity measures could weaken the country's healthcare system, economy, and innovative capacity.
Under current regulations, pharmaceutical manufacturers are already required to grant health insurers a 7% rebate on patented medicines. The finance commission has proposed raising this rebate to 14% by 2027 and subsequently dynamicizing it annually from 2028 onwards. While this could generate an estimated €5.2 billion in additional savings for the GKV by 2030, the BASYS Institute's analysis indicates that the economic repercussions could be far more negative.
According to the BASYS Institute's research, every one euro saved through increased manufacturer rebates could lead to losses of up to €3.80 for the overall German economy. The estimated cumulative loss in gross value added between 2026 and 2030 could reach €48.1 billion if rebates were raised to 16%. This stems from direct and indirect effects impacting the value creation of pharmaceutical companies and broader economic activities.
The report criticizes this approach, which seeks short-term savings by intensifying existing price regulation mechanisms. The German pharmaceutical industry already contributed significantly to the stabilization of GKV finances in 2025, amounting to approximately €29 billion. Imposing further pressure could jeopardize the sector's investments in research and development and its ability to provide new and innovative treatments in the future.
The BASYS Institute's analysis underscores the need for the government to carefully weigh the balance between short-term savings and the long-term economic and health consequences. The proposed measures risk undermining Germany's standing as a hub for innovation and economic development.