Germany extends drug price freeze to curb rising health insurance costs in 2026

The Federal Ministry of Health (BMG) has extended key cost-saving measures for prescription drugs in 2026. The decision keeps the price freeze and mandatory manufacturer discounts in place, aiming to stabilise health insurance contribution rates. Without these steps, additional contribution rates for statutory health insurance (GKV) would likely climb further.

The BMG's move follows a pattern of controlling drug costs to prevent sharp rises in insurance contributions. In 2024, these measures saved the GKV system €2.19 billion. Without the price freeze, the average supplementary contribution rate is projected to jump from 2.5% in 2025 to 2.9% in 2026.

Pharmaceutical companies still have some flexibility under the rules. They can request exemptions from statutory discounts if market conditions create undue hardship. For drugs without therapeutic alternatives, firms may negotiate new prices with the GKV-Spitzenverband. Adjustments are also allowed for medications under §130a(3a) of the Social Security Code (SGB V), provided they receive new approvals or demonstrate improved patient care.

A small relaxation has been introduced for immunoglobulins to ensure supply. Additionally, an inflation adjustment mechanism will ease the financial strain on drugmakers, offering relief of €170 million in 2025 and an estimated €79 million in 2026.

The extended measures aim to keep contribution rates stable while balancing the needs of pharmaceutical companies. The BMG's approach prevents a steeper rise in supplementary rates, which would otherwise reach 2.9% by 2026. The system also allows for adjustments in cases of market strain or medical necessity.