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Germany’s health insurance chief demands action on skyrocketing drug costs

Drug prices are crippling Germany’s healthcare system—even as life expectancy rises. One CEO says the balance between cost and benefit has collapsed.

, and Administrator

2025 November 12 . 9:01 PM

1 min read

There is a pharmacy store and there is a vehicle in front of it and there is a building in the left... — There is a pharmacy store and there is a vehicle in front of it and there is a building in the left corner.

Germany’s health insurance chief demands action on skyrocketing drug costs

Oliver Blatt, CEO of Germany’s National Association of Statutory Health Insurance Funds (GKV), has called for urgent action to control soaring drug prices. Blatt believes the balance between the benefits and costs of new drugs has been lost and needs to be addressed.

Blatt noted that while new medical advancements have extended life expectancy, drug prices have skyrocketed, even when they don't offer extra benefits. He dismissed debates over the number of statutory health insurers as a distraction from the core issue of drug prices. Blatt stated that streamlining has led to a reduction in the number of statutory health insurers from 420 in 2000 to 94 currently, and the existing competition among insurers is working well, with administrative costs cut to 4% of total expenditures.

Statutory insurers are projected to spend around €370 billion in 2026, with hospital care being the biggest expense. Blatt criticized the current government for watering down the hospital reform and giving federal states too much leeway. He argued for increasing the mandatory manufacturer rebate beyond the current 7% to cut costs without burdening the pharmaceutical industry. Blatt also pointed to international models for volume-based pricing, suggesting they could work in Germany.

Blatt's call for action comes as statutory insurers face increasing drug costs. With no specific details on talks between the current Minister of Health, Nina Warken, and the pharmaceutical industry, Blatt's proposals could influence the ongoing discussions on drug price control.