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Insider Insights

French government targeting €1 billion in savings for 2024 through new reimbursement regulation

21/09/2023

In 2021 and 2022, expenses on reimbursed medicines in France increased by more than 4%. In order to curb this sharp increase for 2023 and 2024, the government is implementing a strategy to control the cost of drug reimbursements, targeting €850 million in savings on medicines and €150 million in savings on medical devices. This will be achieved through price reductions, with some essential products being protected.

The government is also planning to take steps to improve the proper use of medicines and the relevance of prescriptions. This could involve learning from other countries, such as those that have successfully reduced the use of antibiotics, since France is one of the largest consumers of antibiotics. According to Les Entreprises du Médicament (Leem), which represents pharmaceutical companies, €565 million euros in savings are planned through restricting volumes.

The government will cap the yield of the safeguard clause with regard to the pharmaceutical industry, at €1.6 billion for 2023 and 2024. This clause forces manufacturers to pay back part of their turnover in the event of growth exceeding the ceiling set by the Loi de Financement de la Sécurité Sociale (LFSS).

Leem said this new strategy is, “likely to slow down the rapid deterioration of the situation in the pharmaceutical sector in France”. The PLFSS (Project de LFSS) 2024 plan will be detailed in the draft Social Security budget and presented by the end of September.


Sources:

  1. LesEchos. Médicaments : les laboratoires saluent la nouvelle stratégie du gouvernement. https://www.lesechos.fr/economie-france/social/medicaments-les-laboratoires-saluent-la-nouvelle-strategie-du-gouvernement-1979971
  2. Egora. Pour mieux réguler les dépenses de médicaments, le Gouvernement veut jouer sur les volumes et la “pertinence des prescriptions” https://www.egora.fr/actus-pro/medicaments/82316-pour-mieux-reguler-les-depenses-de-medicaments-le-gouvernement-veut

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