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Germany cracks down on Dutch pharmacies flouting prescription drug pricing laws

Fixed drug prices are non-negotiable in Germany—yet Dutch pharmacies keep offering banned discounts. Now, regulators want to shut them down for good.

The image shows a poster with the text "In 2022, Big Pharma Charged Americans Two to Three Times...
The image shows a poster with the text "In 2022, Big Pharma Charged Americans Two to Three Times More Than What They Charged People in Other Countries for the Same Drugs" at the bottom, accompanied by a few bottles and a syringe.

Germany cracks down on Dutch pharmacies flouting prescription drug pricing laws

Dutch mail-order pharmacies are still breaking German law by offering illegal discounts on prescription drugs. These discounts violate Germany's Social Security Code (SGB V), which sets fixed prices for medications. Now, the German Pharmacists' Association (ABDA) is pushing for stricter penalties to stop the practice.

The ABDA has called for a new legal framework to enforce penalties against pharmacies that ignore price regulations. Under their proposal, violations could result in fines of up to €300,000. They also want existing contractual penalties turned into official social security fines.

To ensure compliance, the ABDA suggests suspending the authorisation of any pharmacy that fails to pay penalties. This would prevent them from supplying insured patients until all fines are settled. The association has recommended that the Federal Office for Social Security (BAS) take charge of enforcement.

Currently, Dutch mail-order pharmacies continue to advertise discounts, despite the clear rules in Germany. The ABDA's proposals aim to close loopholes and strengthen oversight of foreign suppliers.

If the ABDA's recommendations are adopted, pharmacies breaking pricing laws could face heavy fines and lose their right to serve German patients. The BAS would monitor compliance, ensuring stricter control over prescription drug discounts. This would mark a significant change in how violations are handled under German social security regulations.

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