Germany extends freeze on prescription drug prices through 2025

The German government has confirmed that prescription drug prices will remain frozen next year for medications covered by health insurance. At the same time, mandatory discounts for manufacturers will stay in place. These steps aim to prevent sharp rises in health insurance costs for patients and providers alike.

The price freeze has been a key tool in controlling healthcare expenses since 2018. An inflation adjustment mechanism introduced on July 1 of that year has helped ease financial pressure on pharmaceutical firms. However, exceptions now allow a 50% base price increase for children's medicines and drugs facing supply shortages. The strict freeze on immunoglobulins has also been loosened.

The Federal Ministry of Health (BMG) insists these measures are necessary to keep insurance contribution rates stable. Without them, additional rates could climb to 2.9% by 2026. In 2024 alone, the rules saved statutory health insurance schemes €2.19 billion. New drug prices can still be negotiated in certain cases. This applies to medications under §130a(3a) of the Social Security Code or to drugs with no therapeutic alternatives. Manufacturers struggling under the discount requirements can request exemptions if the financial burden becomes excessive.

The extended price controls will continue to shape Germany's pharmaceutical market in the coming year. While some flexibility has been introduced for critical medicines, the overall system remains focused on cost containment. The measures are designed to balance affordability for patients with financial stability for insurers.