Hermann: “Efficient supply management pays off”

02.10.2018 17:19

“Spending on medicines continues to rise. Manufacturers of patent-protected drugs can still charge astronomical prices in the first year,” says Dr. Christopher Hermann, CEO of AOK Baden-Württemberg. “With the discount agreements in the market segment for off-patent medicines, there is an efficient instrument that provides lasting relief for our insured persons and employers as contributors.”

The generic discount agreements also noticeably slowed the increase in spending on medicines in the first half of 2018. In the first six months of 2018, the eleven AOKs have already saved over 678 million euros, which is almost 5 percent more than in the comparable period last year.

“In the health insurance comparison, the AOK community is particularly successful,” says the AOK chief negotiator and chairman of the board of AOK Baden-Württemberg, Dr. Christopher Hermann. On average, the health insurance companies' drug spending increased by three percent per insured person. “The AOK is well below this value at 1.4 percent. This is where our efficient supply management pays off.”

Hermann comments on the start of new AOK drug discount contracts on October 1, 2018. Tranche XX replaces expiring contracts. It contains 57 active ingredients and combinations of active ingredients (58 subject lots) with an annual AOK sales volume of around 1.2 billion euros (pharmacy sales price).

This time the contractual partners are 27 pharmaceutical companies or bidding consortia. Five active ingredients were allocated in a three-partner model, all others exclusively. The particularly high-selling drugs in Tranche XX include the blood pressure lowering drug metoprolol and the diabetes drug metformin.

An overview of the AOK XX tranche starting on October 1, 2018:

• Duration: October 1, 2018 to September 30, 2020
• Contracts for 57 active ingredients/active ingredient combinations in 58 subject lots (53 exclusive, 5 in the three-partner model)
• 27 successful pharmaceutical companies/bidding consortiums
• AOK sales volume: 1.2 billion euros per year (pharmacy sales price)