Germany: the federal government launches the “great” health care reform

Drug prices frozen. The law on "modernization of public offices" (GKV-Modernisierungsgesetz), which came into effect on January 1st 2004, already allowed a strong decrease of expenditures (dental prostheses = -33 %), thanks to a reduction of the refunding level and base, but also thanks to the introduction of a quarterly flat tax of 10 euros. Meanwhile, the amount of expenditures on drugs did not stop climbing (+17 % in 2005). To cure this skid, the law on " good management of drug supply" (Arzneimittelversorgungs-Wirtschaftlichkeitsgesetz - AVWG) was voted in March 2006. It will come into effect on next April 1st. It notably institutes a two years freeze of drug prices. It also lowers reimbursements and reinforces checks on the approval of new drugs by the GKV.
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me into effect on January 1st 2004, already allowed a strong decrease of expenditures (dental prostheses = -33 %), thanks to a reduction of the refunding level and base, but also thanks to the introduction of a quarterly flat tax of 10 euros. Meanwhile, the amount of expenditures on drugs did not stop climbing (+17 % in 2005). To cure this skid, the law on ” good management of drug supply” (Arzneimittelversorgungs-Wirtschaftlichkeitsgesetz – AVWG) was voted in March 2006. It will come into effe

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