Bundestag Keeps Drug Price Freeze in place

In contrast to speculation only days earlier, Germany's national parliament, the Bundestag, on 19 December passed pharmaceuticals legislation extending the mandatory discount awarded by pharmaceutical producers to public health insurers until the end of March 2014.

In the interim, the parliamentary action keeps the rebate from slipping to 7% from currently 16% and also prevents the expiration of a price freeze on patented drugs in place since 2010.

During 2014, the grand coalition of chancellor Angela Merkel's Christian Democrats and the Social Democrats will introduce new legislation dropping the rebate back to 7% but keeping a moratorium on drug price increases until the end of 2017. The price rebate was raised to 16% in 2010 to help stabilize the finances of public health insurance companies.