Germany’s Hybrid Model Fights High Prices

December 10, 2021

Germany’s hybrid private-public health insurance system may offer insights into lowering drug prices in the United States, according to a January 2020 article in New England Journal of Medicine. The German healthcare system is based on private insurers cooperating in a standardized model that reduces complexity and administrative costs. In addition, the German system’s price-setting measures balance manufacturer return on investment and patient access to treatment.

According to Mary Beth Nierengarten of First Report Managed Care, “Briefly, a manufacturer is paid the list price of a new drug for the first year of its launch; the drug is immediately available to physicians for prescribing and is covered by insurance. During this first year, a committee comprised of health insurance plans, physicians, hospitals, and patient advocates (called the Joint Federal Committee) conducts its own clinical analysis of the drug and compares it to any existing drugs for the same indication.”

Find out more by clicking here.

(Source: First Report Managed Care, November, 2021)

Share This Story!