Germany's health insurance associations can set drug prices, EU court says
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《英国医生杂志》
The European Court of Justice has ruled that Germany抯 state health insurance associations are entitled to set the maximum price that they will pay for drugs.
Europe抯 highest court, which is based in Luxembourg, said that Germany抯 system, in which state health insurance associations can determine a price ceiling for drugs does not break EU laws on competition. This is because such associations cannot be considered to be companies operating in the free market but rather are government agencies that act as guardians of the public health.
"Groups of health insurance funds, such as the German Health Insurance Fund Association, do not constitute enterprises or associations of enterprises as understood under EU competition rules," the court said.
Germany抯 health insurance associations welcomed the court抯 decision.
A spokesman for Berlin抯 health insurance associations said that the practice of setting ceilings on the price of drugs had proved to be the most effective way to control the rising cost of medicines. He said that the associations expected to save as much as �2.5bn (?.7bn; $3.1bn) in 2004 because of it.
The Social Democrat health minister, Ulla Schmidt, also had strong praise for the court抯 ruling, saying that it provided a "sound foundation" for the continuation of the German system.
She said that the ruling had shown "beyond all doubt" that EU antitrust laws cannot be applied to the 350 state health insurance associations in Germany.
Germany introduced legislation in 1989 obliging the associations to agree on the maximum prices they would pay for drugs in a bid to keep down healthcare costs. The associations, which provide health insurance to more than 90% of the German population, reimburse patients for the costs of drugs. Patients who spend more on a drug than the upper limit specified by the associations have to pay the difference themselves.
The case came to the European Court of Justice after drug companies challenged the German system. The companies had argued that the system kept drug prices too low and so cut into the profits available to them for drug research and development.
"Setting prices can be a problem for companies developing innovative drugs, because they can抰 get a return on their investment," said Anne Robins of the European Federation of Pharmaceutical Industries and Associations, which represents drug manufacturers.(Vienna Jane Burgermeister)
Europe抯 highest court, which is based in Luxembourg, said that Germany抯 system, in which state health insurance associations can determine a price ceiling for drugs does not break EU laws on competition. This is because such associations cannot be considered to be companies operating in the free market but rather are government agencies that act as guardians of the public health.
"Groups of health insurance funds, such as the German Health Insurance Fund Association, do not constitute enterprises or associations of enterprises as understood under EU competition rules," the court said.
Germany抯 health insurance associations welcomed the court抯 decision.
A spokesman for Berlin抯 health insurance associations said that the practice of setting ceilings on the price of drugs had proved to be the most effective way to control the rising cost of medicines. He said that the associations expected to save as much as �2.5bn (?.7bn; $3.1bn) in 2004 because of it.
The Social Democrat health minister, Ulla Schmidt, also had strong praise for the court抯 ruling, saying that it provided a "sound foundation" for the continuation of the German system.
She said that the ruling had shown "beyond all doubt" that EU antitrust laws cannot be applied to the 350 state health insurance associations in Germany.
Germany introduced legislation in 1989 obliging the associations to agree on the maximum prices they would pay for drugs in a bid to keep down healthcare costs. The associations, which provide health insurance to more than 90% of the German population, reimburse patients for the costs of drugs. Patients who spend more on a drug than the upper limit specified by the associations have to pay the difference themselves.
The case came to the European Court of Justice after drug companies challenged the German system. The companies had argued that the system kept drug prices too low and so cut into the profits available to them for drug research and development.
"Setting prices can be a problem for companies developing innovative drugs, because they can抰 get a return on their investment," said Anne Robins of the European Federation of Pharmaceutical Industries and Associations, which represents drug manufacturers.(Vienna Jane Burgermeister)