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Managing pharmaceutical regulation in Germany: Overview and economic assessment

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  • Schreyögg, Jonas
  • Henke, Klaus-Dirk
  • Busse, Reinhard

Abstract

Rising costs in pharmaceutical expenditure have become a major concern for policy makers in Germany over the last years. Therefore the pharmaceutical market in Germany has been increasingly targeted by different kinds of regulations, focussing both on the supply and the demand side, using price, volume and spending controls. Specific regulations include price reductions, reference pricing, pharmacy rebate for sickness funds, increasing co-payments, an "aut-idem" substitution, parallel imports, negative list, guidelines, and finally spending caps for pharmaceutical expenditure per physicians' association. Although it is difficult to attribute certain effects to single measures, some measures like reference pricing and physician spending caps are more effective and long-lasting than others. Although highly disputed among physicians, the spending caps applied between 1993 and 2001 have limited pharmaceutical expenditure for an entire decade. However, while some measures do effectively control expenditures, their effect on allocative efficiency may be negative.

Suggested Citation

  • Schreyögg, Jonas & Henke, Klaus-Dirk & Busse, Reinhard, 2004. "Managing pharmaceutical regulation in Germany: Overview and economic assessment," Discussion Papers 2004/6, Technische Universität Berlin, School of Economics and Management.
  • Handle: RePEc:zbw:tubsem:20046
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    References listed on IDEAS

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    1. Boss, Alfred & Rosenschon, Astrid, 2002. "Subventionen in Deutschland: Quantifizierung und finanzpolitische Bewertung," Kiel Discussion Papers 392/393, Kiel Institute for the World Economy (IfW).
    2. Donges, Juergen B. & Eekhoff, Johann & Franz, Wolfgang & Möschel, Wernhard & Neumann, Manfred J. M. & Sievert, Olaf, 2002. "Mehr Eigenverantwortung und Wettbewerb im Gesundheitswesen," Kronberger Kreis-Studien 39, Stiftung Marktwirtschaft / The Market Economy Foundation, Berlin.
    3. Henke, Klaus-Dirk, 2003. "Wie lassen sich Gemeinwohl und Wettbewerb in der Krankenversicherung miteinander verbinden? Eine nationale und europaweite Herausforderung," Discussion Papers 2003/2, Technische Universität Berlin, School of Economics and Management.
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    Cited by:

    1. Allen, Pauline & Hommel, Petra Riemer, 2006. "What are `third way' governments learning? Health care consumers and quality in England and Germany," Health Policy, Elsevier, vol. 76(2), pages 202-212, April.

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