Why Medicine Is Cheaper in Germany - Olga Khazan - The Atlantic - 0 views
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Germany's process has worked pretty well ever since Otto Von Bismarck set it in motion in 1889. But by 2009, the system started to break down. Drug manufacturers were introducing new drugs—knowing they'd be reimbursed by the sickness funds—but the new drugs weren't necessarily any better than the earlier ones. The result: Drug prices spiraled.
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nter 2010's Pharmaceutical Market Restructuring Act, or Arzneimittelmarkt-Neuordnungsgesetz, abbreviated in German as AMNOG. As in "AMNOGonna pay drug companies for new meds that are more expensive but not any better than the old ones."
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s soon as a new drug enters the market, manufacturers must submit a series of studies that prove it heals patients better than whatever was previously available. If the new drugs don't seem any better than their predecessors, the sickness funds will only pay for the price of the earlier version. Patients can still buy the newer medicine, but it's up to them to make up the price difference out of pocket.
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