The German Statutory Health Insurance Federation has formally rejected a proposal that would fund industry policy aimed at strengthening the pharmaceutical sector through contributions paid by the public. Politico reports that the rejection is based on a letter sent to Health Minister Nina Warken (CDU) on 6 February.
The Health Ministry is currently negotiating with the pharmaceutical and medical‑technology industry how best to position Germany as a hub for drug development. From the insurers’ point of view, higher drug prices are not an option for improving that position. In the letter, the federation stresses that “industry‑policy driven burdens on contributors in the area of drug reimbursement must be avoided”.
It points out that Germany already has the second‑highest spending on prescription drugs among OECD countries. Moreover, it argues that high drug prices are not causally linked to location‑specific factors such as research and production. Instead, the minister should focus on “contractual delivery and stock‑piling obligations” to improve supply.
On 4 February, five major pharmaceutical associations had also written to the minister, warning of a “tightening price competition”. Statutory health insurance spending on drugs rose from €50 billion in 2023 to €55 billion in 2024.



