Government Urged to Act Against Illegal Discounts from Foreign Pharmacies

The president of the Federal Union of German Associations of Pharmacists (ABDA) has called on the German Minister of Health to take decisive action against the illegal discounts offered by foreign online pharmacies on prescription medications. According to Thomas Preis, this practice constitutes a clear violation of existing laws and requires government intervention to impose penalties and halt such behavior.

Following a recent ruling by the Federal Court of Justice, several large foreign online pharmacies resumed their discounting practices, prompting concerns among local pharmacists. Doc Morris, a prominent online pharmacy, announced additional promotional campaigns on the same day the court's decision was announced.

Despite the court's ruling being based on previous legislation, the online pharmacies appear unfazed. The current Social Code prohibits discounts or bonuses when patients with statutory health insurance redeem prescription medications in German pharmacies. Preis emphasized that this regulation also applies to foreign online pharmacies, stating that allowing discounts to undermine price stability could lead to destructive price competition.

He further argued that maintaining price controls is crucial for ensuring the availability of medications and protecting patients. Preis warned of potential scenarios where price gouging could occur during supply shortages, underscoring the importance of regulatory adherence.

In addition to addressing the issue of illegal discounts, Preis advocated for increased compensation for pharmacies. He reported that since 2008, approximately 4,500 pharmacies have shut down, representing a 21% decrease in the number of operating pharmacies. He highlighted the urgent need to reverse this trend, noting that many urban areas are now left without local pharmacies.

Preis pointed out that pharmacy compensation has not seen a substantial increase in 13 years, despite surging operational costs, such as energy and labor. This stagnation in compensation has pushed many pharmacies to the brink of economic viability.

The current coalition government is in the process of reforming pharmacy regulations. According to the coalition agreement, a higher and more dynamic compensation structure is anticipated. Minister of Health Warken is expected to present initial proposals at this year's German Pharmacy Day in Düsseldorf.