DrugBuyers.Com: German Government Considers Internet Drug Sales

Thursday February 6, 11:13 PM

BERLIN -(Dow Jones)- The German government is considering allowing the mail-order sale of drugs and liberalizing the price system for pharmaceuticals, according to plans to reform the health care system presented by the health and social affairs ministry Thursday.

The move, which would allow people to order drugs over the Internet, is aimed at improving the drug supply as well as improving quality and price awareness, the ministry's statement said.

Currently, people can purchase drugs only in pharmacies.

The ministry also plans to allow pharmacists to own several shops, something they are currently barred from doing.

The plans emerged as the government targeted reducing costs in the health care system, which is funded by contributions from employers and employees that amount to around EUR142 billion.

Rising costs have prompted many health insurers to increase contributions to an average of 14.4% of gross income from 14.0%, making non-wage related costs more expensive in Germany, where over 4.6 million are currently unemployed. The public health system deficit was EUR2.5 billion last year.

The planned changes would also impact the German pharmaceutical sector, where companies already complained last year that government plans to force drug companies to cut prices on certain products by 6% to public health insurers will hurt their earnings.

The rebate took effect Jan. 1 and the health ministry expects it to save EUR420 million this year.

The ministry is expected to present more far-reaching health care reform plans in April.

Health Minister Ulla Schmidt said during a press conference that a bill outlining the reform will be presented in May and not in April as planned earlier, with the reform forecast to take effect in 2004.

-By Andrea Thomas, Dow Jones Newswires; 49-30-288-8410;