German Parliament votes to double mandatory drug rebate to 15.5%, sparking industry concerns

German lawmakers have approved a bill that would raise the mandatory rebate that drug manufacturers must give the government on branded medicines from the current 7% to 15.5%.

The increase is intended to help close a large budget shortfall in Germany’s statutory health insurance system.

Industry groups warned that the higher rebate could discourage investment in the German market and threaten patients’ timely access to new therapies.

The measure still needs approval from the upper chamber before it becomes law.