Reform ties future healthcare spending to economic growth, aiming to curb insurance premiums amid drugmaker opposition.
Germany’s Bundestag approved a €16bn overhaul of its statutory health insurance system, introducing caps on spending for medicines, hospitals, and doctors. The reform increases mandatory rebates from pharmaceutical companies and limits cost transfers to insurers, tying future expenditure growth to overall economic performance.
The legislation, a cornerstone of Chancellor Friedrich Merz’s agenda, targets spiraling insurance premiums, which currently average 17.5% of gross salaries, split equally between employees and employers. The bill faced strong resistance from global drugmakers, who warned of reduced innovation incentives.
Markets may monitor the reform’s impact on healthcare stocks, particularly pharmaceuticals, as cost pressures intensify under the new framework.