German Pharmacists Dispute New Payment Rules

German pharmacists' federation BVAV has claimed that new payment rules are reducing margins on prescription drugs, and may seek compensation for members. The association claims that losses on OTC drugs have been even higher. However, whether Germany's health funds will be obliged to pay out is to be determined by a court decision.

Under recent healthcare reforms, pharmacists are able to seek compensation if 2004 income falls below 2002 levels. Health Minister Ulla Schmidt has urged pharmacists not to seek the payments, in an effort to help to constrain health fund costs. Meanwhile, opposition politicians have stated that including compensatory incentives in the reforms was an error in the first place.

Among other unfavourable measures, German pharmacists have recently faced higher patient co-payments, with retail drug sales increasing by a slow 4% in the 12 months to February 2005. The government is also unlikely to welcome further costs as it attempts to reform Germany's EUR140bn (US$177.10bn) statutory healthcare system.