Germany's Bundestag approved a package overhauling the statutory health
insurance system that mandates higher drugmaker discounts to cut billions in
costs; the bill now goes to the Bundesrat amid state-level criticism. From next
year drugmakers must give 15.5% discounts on most reimbursed branded medicines,
up from the current 7%. The government says the measures—discounts plus spending
controls, higher system contributions and greater patient co‑pays—will save
about €16 billion next year; without reform public insurance faces a funding
shortfall of more than €40 billion by 2030. The health minister warned
contributions from workers and employers would otherwise need to rise from next
year. Drugmakers including Eli Lilly and Boehringer Ingelheim have warned higher
discounts could prompt them to relocate planned investment outside Germany and
constrain new‑drug R&D.
