A new expert panel is developing proposals for a legally compliant design of the location clause in order to promote investment and employment in Germany’s pharmaceutical sector.
Together with high-ranking representatives from self-governing bodies, trade unions, and the pharmaceutical industry, legal experts and clinical research specialists have begun work to develop exceptions to the additional manufacturer’s rebate under the so-called “location clause.”
The background: starting January 1, 2027, pharmaceutical companies will generally be required to apply a total discount of 15.5% (previously 7% plus an additional manufacturer’s discount of 8.5%) to patented drugs to stabilise the finances of the statutory health insurance system (GKV).
This is stipulated in the GKV Contribution Rate Stabilization Act, passed on July 10, 2026. The location clause is to be introduced by January 1, 2027, thus entering into force simultaneously with key provisions of the GKV Contribution Rate Stabilization Act.
Furthermore, the expert panel will develop proposals for measures to improve incentives for investment in research, development and production of pharmaceuticals in Germany.
With the establishment of the expert panel, the Federal Ministry for Economic Affairs and Energy (BMWi) and the Federal Ministry of Health (BMG) are jointly fulfilling a corresponding mandate from the parliamentary process for the reform of statutory health insurance.
The results are to be handed over to the BMWE and BMG by September 30, 2026.
