German reforms pass first hurdle
policy voted in by the country's parliament with a comprehensive
majority.
The government of Germany has had its controversial health reform policy voted in by the country's parliament with a comprehensive majority.
German chancellor Gerhard Schroeder had threatened to resign if the package was defeated in the country's lower house (Bundestag). As it happened, the bill was passed with 517 votes in favour, 54 against and three abstentions. It now has to go through committee stages and then into the upper house (Bundesrat), with introduction planned for next January.
The package is aimed at reducing Germany's spending on health by €20 billion, but it contains some measures that have angered the pharmaceutical industry.
Both Pfizer and Merck & Co have already threatened to either pull out of Germany or shelve plans for expansion there because of the proposals.
The measures include a 16 per cent mandatory rebate or 'solidarity contribution' of €3 billion (up from 6 per cent) which the German government plans to require from the pharmaceutical industry plus the erosion of patent protection through reference prices, according to the German drug industry association (VFA).
For consumers, the most significant factor of the reforms is that they will, for the first time, be required to pay a contribution toward the costs of health services and products including prescription drugs, dental treatment and hospital care. They will also be allowed to buy medicines by mail order and over the Internet, which is currently prohibited.
