Health insurance funds struggling with skyrocketing medication costs
Health insurance funds in Bavaria are finding themselves in a tough spot, as they're shelling out more and more cash for medications in the outpatient sector. Since 2010, the gross turnover per SHI insured person in Bavaria has climbed an astounding 60.5%, reaching a whopping 711 euros in 2022. As a result, the total expenditure amounted to a staggering 7.99 billion euros last year. Across Germany, the trend continued, with expenditure climbing by 53.2% to 743 euros per insured person – that's a whopping 54.1 billion euros in total. And with no end in sight, it seems that regulations in the pharmaceutical market are more crucial than ever.
"The eye-watering cost increases for incredibly pricey, patent-protected drugs are putting an immense strain on the SHI system and ultimately the contributors," said Ralf Langejürgen, Chairman of the BKK Landesverband. "Politicians need to step up and install stricter price regulations from hereon, particularly for new products, and reduce the excessive benefits for the pharmaceutical sector," he continued.
A vast majority, almost 90% of people in Bavaria, are covered by statutory health insurance. Conditions such as diabetes, high blood pressure, and chronic obstructive pulmonary disease (COPD) are driving these rising costs.
The continuing increase in expenditure on medications highlights the dire need for stricter pricing regulations and a reduction in exceptional privileges in the pharmaceutical sector.
While legislation can help decrease the financial strain of high-priced, patent-protected medications on healthcare funds, specifically for diabetes and high blood pressure, by employing several strategies:
- Medicare Price Negotiation
- Price Caps and Discounts
- Generic Entry and Competition
- Regulatory Flexibility
- Transparency and Accountability
- Importation of Lower-Priced Drugs
Implementing these legislative measures can significantly reduce the financial burden faced by both patients and healthcare funds when it comes to high-priced, patent-protected medications for conditions like diabetes and high blood pressure.
