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The German experience in reference pricing.

G Giuliani1, G Selke, L Garattini

  • 1Center for Health Economics CESAV, Mario Negri Institute for Pharmacological Research, Ranica, Italy. cesav@cyberg.it

Health Policy (Amsterdam, Netherlands)
|March 8, 1998
PubMed
Summary

Germany

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Area of Science:

  • Health Economics
  • Pharmaceutical Policy

Background:

  • Public authorities use price regulation schemes for cost containment and to support the national pharmaceutical industry.
  • The dual aims of price regulation create application challenges.
  • Reference pricing, setting price caps for active ingredients, was introduced in Germany in 1989.

Purpose of the Study:

  • To investigate the economic effects of Germany's reference price scheme.
  • To assess the system's effectiveness in controlling public pharmaceutical expenditure.

Main Methods:

  • Analysis of the economic impact of the reference price scheme in Germany.
  • Evaluation of cost containment in public pharmaceutical spending.

Main Results:

  • The reference price scheme has proven effective in controlling pharmaceutical prices.
  • Overall cost containment in public pharmaceutical expenditure requires additional measures beyond reference pricing.

Conclusions:

  • The reference price scheme is a valuable tool for pharmaceutical price control.
  • Further strategies are necessary to achieve comprehensive cost containment in public pharmaceutical expenditure.

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