Pharmacies Alleviate Financial Strain on Health Insurance Despite Budget Constraints
The financial challenges facing pharmacies in Germany have intensified, with new data revealing that the expenditures of the Statutory Health Insurance (GKV) for medications (excluding vaccines) surged by 9.7 percent in 2024, reaching a total of 53.7 billion euros. This information was disclosed through recent calculations by the German Pharmacists' Association (DAV), based on the billing results from pharmacy accounting centers.
Despite ongoing financial strain, pharmacies have managed to contribute significantly to cost savings within the GKV system. The impact of the pharmacy discount has led to a reduction in pharmacy remuneration by a staggering 1.13 billion euros in the past year alone.
Financial pressure on pharmacies has escalated, especially following the government's decision to increase the pharmacy discount from 1.77 euros to 2 euros for the two-year period from February 1, 2023, to January 31, 2025. This adjustment has forced pharmacies, already in a precarious financial position, to absorb an additional burden of approximately 310 million euros (including value-added tax) as a special sacrifice during these 24 months.
Moreover, the volume of medications prescribed under GKV has risen by 1.6 percent in 2024, totaling 760 million prescriptions, according to the DAV. The data clearly indicates that health insurance funds are spending more on nearly the same volume of prescribed medications. This trend highlights the increasing costs associated with newer and more effective treatments, as healthcare providers aim to ensure that patients benefit from advancements in therapy.
Hans-Peter Hubmann, the chairperson of the DAV, stated that it is perplexing why pharmacies, which are essential for advising patients on these new therapies, are being subjected to severe budget cuts. The share of pharmacy remuneration in the overall expenses of health insurance funds has remained consistently low at around two percent for many years. Following the recent rise in the pharmacy discount, there is relief as it is set to return to its normal level.
Hubmann emphasized that the current trajectory is unsustainable, as the number of pharmacies has decreased by approximately 18 percent over the past decade. Notably, the last adjustment to pharmacy remuneration occurred in 2013, despite significant increases in operational costs. He called for urgent action from the new federal government to increase and adjust pharmacy fees to prevent further closures of pharmacies.
As the political landscape evolves, particularly during the current Bundestag election cycle, policymakers are expected to be evaluated on their commitment to safeguarding pharmacies. Strengthening the infrastructure for medication provision is crucial for the health of the population and should be prioritized by lawmakers.
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