Germany extends drug price controls to stabilize health insurance costs until 2026

The German government has extended key cost-control measures for prescription drugs to stabilise health insurance contributions. These rules, which include a price freeze and mandatory discounts, will remain in place through 2026. Officials confirmed the move aims to prevent sharp rises in patient costs and ease pressure on the statutory health insurance system (GKV).

Since July 2018, an inflation adjustment mechanism has been part of the price freeze, offering some relief to pharmaceutical manufacturers. Under the current system, companies can request exemptions from statutory discounts if the financial burden becomes excessive. A 50% increase in base prices is still permitted for pediatric medications and supply-critical drugs, ensuring access to essential treatments.

The Federal Ministry of Health (BMG) has also maintained negotiations for new drug prices under §130a(3a) of the Social Security Code (SGB V). These discussions involve the GKV-Spitzenverband, the national association of health insurance funds. The measures have already reduced the financial strain on statutory health insurance by €2.19 billion in 2024. Without these controls, the additional contribution rate—currently set at 1.7%—was projected to climb to 2.9% by 2026. The BMG insists the extended rules will help keep contribution rates stable and prevent further hikes for insured patients.

The extended price freeze and discount system will continue limiting drug costs for patients covered by statutory health insurance. Pharmaceutical firms retain options to negotiate pricing or seek exemptions under financial hardship. The government's decision ensures that contribution rates remain manageable while maintaining access to critical medications.