Lower Saxony unifies pharmacy supply contracts for smoother medical services

Lower Saxony unifies pharmacy supply contracts for smoother medical services

A poster with text and a logo stating "$160 billion the amount taxpayers will save since Medicare can negotiate lower prescription drug prices".

Lower Saxony unifies pharmacy supply contracts for smoother medical services

A new unified contract for pharmacy supplies to medical practices in Lower Saxony has been finalised. The agreement, signed by the State Pharmacists' Association (LAV) and health insurance funds, replaces a patchwork of older arrangements with a single, streamlined framework. It takes effect on July 1, 2023, ensuring no disruption in service for contract physicians.

The previous system of fragmented agreements was terminated on December 31, 2025, prompting months of negotiations. The result is a standardised contract that reduces bureaucracy and introduces clearer rules for supplying practice medications. These supplies include essential items like vaccines, drugs, and dressings used during treatments or emergencies.

One major change is the introduction of standard priority rules for dispensing ready-made medicines to practice supply needs. Another key update is the revised remuneration for vaccine deliveries. Pharmacies will now receive 80 cents per dose, with the rate rising to €1 once certain targets are met—an increase from the previous 40 cents. To prevent supply disruptions, a no-strike clause was extended twice: first until March 31 and later until June 30. The new agreement ensures continuity, avoiding any risk of a contractual gap before its start date.

The reform aims to improve efficiency, cost-effectiveness, and quality in practice medication supply across Lower Saxony. Pharmacies will benefit from higher vaccine delivery payments and clearer operational rules. The contract's implementation begins on July 1, 2023, with further adjustments scheduled for July 1, 2026.

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