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  • Intergenerika and the Fresenius University of Applied Sciences

The cheapest principle – a cost saving only at first glance?

    • Congress Reports
    • Prevention and health care
    • RX
  • 2 minute read

At the media conference in February in Zurich, the Intergenerics Association and the Fresenius University of Applied Sciences provided information on new study results on the lowest-cost principle.

At the media conference in February in Zurich, the Intergenerics Association and the Fresenius University of Applied Sciences provided information on new study results on the lowest-cost principle.

(lg) Dr. Peter Huber, Managing Director of Intergenerika, an association of generic drug companies in Switzerland, spoke about the importance of drug prices in Switzerland: according to OECD data, they account for less than 10% in Switzerland and have been stable for years. “Generics lead to both a direct and an indirect reduction in healthcare costs. This has been shown over many years. However, further price containment should be viewed critically,” said Dr. Huber. The quality and user-friendly galenics of generic products in Switzerland are high and must be maintained at all costs. Optimized dosage forms also lead, for example, to better compliance and thus higher efficacy.

Dr. Huber thus speaks out clearly against the cheapest principle and warns of examples from other countries such as Germany or the Netherlands: “For example, in the Netherlands around half a million people take their medication incorrectly – an effect of the introduction of the cheapest principle.”

Prof. Dr. Uwe May and Cosima Bauer of Fresenius University of Applied Sciences published new study results on health economic experiences made in Germany with the introduction of discount contracts since 2007. There was a short-term positive effect, with health insurers saving around two billion through favorably negotiated drug prices. In the long term, however, these cost savings would be detrimental to all parties involved: “Discount and reference prices would grosso modo noticeably worsen the situation of patients.” Instead of focusing solely on short-term cost-saving effects for drugs, Prof. May recommends a comprehensive cost-benefit analysis that takes into account all types of costs in the healthcare system. Factors that could potentially be worsened by the introduction of rebate and fixed contracts include patient adherence, quality of care, and uncertainty about penalties and recourse if physicians nevertheless continue to prescribe more expensive drugs that are not included in the rebate contracts, for example.

Source: Intergenerika industry association media conference, February 6, 2014, Zurich

HAUSARZT PRAXIS 2014; 9(4): 34

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  • Lena Geltenbort
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  • HAUSARZT PRAXIS
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  • Cheapest principle
  • Fresenius
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