Germany extends drug price freeze and discounts through 2026 to curb healthcare costs

The German government will keep the price freeze and mandatory discounts on prescription drugs in 2026. These measures aim to control rising healthcare costs and stabilise contribution rates for statutory health insurance. Officials say the rules have already saved billions since their introduction.

The price freeze and manufacturer discounts for insured medications were first introduced to ease financial pressure on the statutory health insurance system (GKV). In 2024 alone, these steps reduced costs by €2.19 billion. Without them, the additional contribution rate—currently expected to reach 2.9% in 2026—would climb even higher.

Pharmaceutical companies can still negotiate prices for certain drugs. This applies to medications covered under §130a(3a) of the Social Security Code (SGB V) or to treatments without therapeutic alternatives. Firms facing excessive financial strain may also request exemptions from the mandatory discounts. To balance cost control with industry needs, an inflation adjustment mechanism has been in place since July 1, 2018. This adjustment will relieve companies of €170 million in 2025 and an estimated €79 million in 2026. Meanwhile, the price freeze on immunoglobulins has been relaxed to prevent shortages and ensure patient access. The Federal Ministry of Health (BMG) confirmed that the existing framework, including discounts under §130a paragraphs 1 and 3a of the SGB V, will remain unchanged. The goal is to maintain stable contribution rates while keeping essential treatments affordable.

The extended price controls and discounts will continue to limit financial strain on the health insurance system. Without these measures, patients and insurers would face higher costs. The government's approach seeks to balance affordability with the availability of critical medications.