Germany’s healthcare crisis deepens as drug prices and hospital costs spiral
Healthcare costs in Germany are soaring, with hospital care being the biggest expense. The spending surged by nearly 10% in 2025 due to rising personnel costs and inflation. Oliver Blatt, CEO of Germany’s National Association of Statutory Health Insurance Funds (GKV), has called for action to curb current drug prices.
Statutory insurers are projected to spend around €370 billion in 2026, amounting to over €1 billion per day. Blatt noted that while new medical advancements have extended life expectancy, drug prices have skyrocketed, even when they don't provide extra benefit. He pointed to international models for volume-based pricing, suggesting it could work in Germany.
Blatt dismissed debates over the number of statutory health insurers, believing the existing competition is working well. Administrative costs have been cut to 4% of total expenditures. He argued for increasing the mandatory manufacturer rebate beyond the current 7% to cut costs without burdening the pharmaceutical industry. Blatt criticized the current government for watering down hospital reform provisions, giving federal states too much leeway.
Blatt believes the balance between added benefit and higher costs of new drugs has been lost and needs to change. He advocates for higher manufacturer rebates and greater pharmaceutical contributions to savings. The name of the lawmaker who worked on the proposal to increase the statutory discount from pharmaceutical companies is not explicitly mentioned, but Blatt is a prominent figure advocating for these changes.
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