Germany’s Health Insurance Chief Demands Action on Skyrocketing Drug Costs
Oliver Blatt, CEO of Germany’s National Association of Statutory Health Insurance Funds (GKV), has called for urgent action to tackle escalating drug prices. He spoke at the Pharma-Dialog at the Kanzlei, highlighting the need for cost control measures in the pharmaceutical industry.
Blatt noted that the biggest expense remains hospital care, with spending surging by nearly 10% in 2025 due to rising personnel costs and inflation. Statutory insurers are projected to spend around €370 billion in 2026, over €1 billion per day.
He believes the balance between added benefit and higher costs of new drugs has been lost. Blatt pointed to international models for volume-based pricing, suggesting it could work in Germany. He argued for increasing the mandatory manufacturer rebate beyond the current 7% to cut costs without burdening the pharmaceutical industry.
Blatt is convinced that the existing competition among insurers is working well, with administrative costs cut to 4% of total expenditures. However, he criticized the current government for watering down hospital reform provisions, giving federal states too much leeway. He dismissed debates over the number of statutory health insurers as a distraction from the real issue of drug prices.
Oliver Blatt, CEO of GKV, has called for action to curb soaring drug prices. With hospital care costs surging and statutory insurers projected to spend over €370 billion in 2026, Blatt believes increasing the mandatory manufacturer rebate and exploring volume-based pricing could help control costs without hindering the pharmaceutical industry.
