Drug discount agreements: AOK plans sanctions for environmental sins

22.07.2020 11:10

“The corona pandemic shows very clearly how dependent the pharmaceutical supply in Europe is on the global, crisis-prone production and supply chains of the global pharmaceutical industry,” said Johannes Bauernfeind, CEO of AOK Baden-Württemberg and chief negotiator for the health insurance company’s nationwide drug discount agreements. The AOK therefore welcomes the goal of the German EU Council Presidency to strengthen the security of supply of important medicines in the EU.

In order to achieve this, incentives are needed that the drug manufacturers cannot ignore, said Bauernfeind on the occasion of the tender for the 24th tranche of the nationwide AOK drug discount contracts launched on July 20, 2020. It includes 120 subject lots with a total of 119 active ingredients.

“From now on, we will oblige drug manufacturers with our discount agreements to permanently create drug reserves for three months as protection against production or delivery failures. This inventory may only be used up in the last quarter of the contract.” In addition, AOK will make its contribution to reducing the supply advantages in the supply chain that arise at the expense of people and the environment through clear liability regulations. If a company wants to conclude a discount agreement with AOK, it must ensure in the future that neither its own production nor that of its suppliers endangers the health of its employees or the environment. “In short: Anyone who does not deliver or does not comply with the local occupational health and safety or environmental standards risks immediately losing the current contract and jeopardizing their chances with a view to future tenders,” says Bauernfeind.

“Medicine discount contracts are a strong control instrument that is currently unique in this form.” With the changed inventory, production and environmental requirements as part of the current AOK tender, according to Bauernfeind, the contracts are being further developed in a targeted manner towards security of supply. A tender for five antibiotic active ingredients is already being prepared for this very specific market, continued Bauernfeind. This tender aims to further strengthen security of supply and compliance with environmental and social standards. “We are also relying on an EU-wide initiative during the German EU Council Presidency that will hold pharmaceutical companies accountable. In the interest of the insured, it must be about promoting market-oriented production in an environmentally friendly manner through appropriate legal framework conditions.”

The AOK XXIV tender at a glance:

• 119 active ingredients in 120 subject lots;
• 22 active ingredients are allocated in a three-partner model;
• Contract term: June 1, 2021 to May 31, 2023;
• AOK sales volume: around 2.0 billion euros per year (pharmacy sales price);
• End of the offer period: September 22, 2020