The Allgemeine Ortskrankenkasse (AOK), the largest state health insurance group in Germany, has made the case for significant reforms to AMNOG in order to revise the pricing system currently applied to new medicines.
The Arzneimittelmarkt-Neuordnungsgesetz (AMNOG – Act on the Reform of the Market for Medicinal Products) has been in effect for ten years, and includes attractive rules for pharmaceutical companies, such as the ability to freely price a new medicine for the year in which pricing negotiations take place.
As health insurers, the priority of AOK is that medicines are affordable for patients within their insurance schemes, and the high costs of some new medicines, coupled with the impending financial difficulties of a post-COVID world, have given AOK cause for concern.
Dr Sabine Richard, Managing Director Supply in the AOK Federal Association, said:
“Manufacturers in Germany can freely set the price for their new drugs in the first year after market approval. That is and will remain the cardinal error of the AMNOG. Instead, we favour an interim price with which a fair price for the contributors can be achieved right from the start.”
In its proposal, AOK suggests a process for setting interim prices rather than free pricing, and also suggests that the initial year of pre-negotiation access be reduced to nine months.
Read the full AOK article for more information on the proposals.