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German Pharmaceutical Pricing: Lessons for the United States.
11850Suffolk University, Boston, MA, USA.
Summary
The US can control pharmaceutical spending and improve drug access by adopting Germany
Area of Science:
- Health Economics
- Pharmaceutical Policy
- Comparative Health Systems
Background:
- Pharmaceutical spending and access are key challenges in the US healthcare system.
- Current US drug pricing strategies involve discounts and restricted access for non-preferred drugs.
Purpose of the Study:
- To analyze the German Pharmaceutical Market Reorganization Act of 2011.
- To identify lessons for US drug pricing reform based on the German model.
Main Methods:
- Comparative analysis of German and US pharmaceutical pricing and reimbursement systems.
- Review of the German Federal Joint Committee's drug assessment process.
- Examination of price negotiation mechanisms between German insurers and manufacturers.
Main Results:
- Germany assesses new drugs for added medical benefit within the first year.
- Reimbursement is determined by therapeutic comparison and benefit scores.
- Price negotiations occur after the first year, with arbitration as a final step.
- Prices are generally fixed post-negotiation, without inflation adjustments.
Conclusions:
- The German model offers a structured approach to pharmaceutical pricing and reimbursement.
- Lessons from Germany can inform US reforms for controlling drug costs and enhancing patient access.
- Potential reforms include benefit assessments, price negotiations, and fixed pricing strategies.
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