The French government has unveiled a plan to reduce the reimbursement of older medications in an effort to reallocate funds toward newer treatments, aiming to save 100 million euros. The proposal involves a "structural reform of the reimbursement of medications," which would allow the High Authority for Health (HAS) to regularly evaluate whether certain treatments should continue to be covered by health insurance. The goal is to make the list of reimbursed medications more flexible and to shift support from treatments with limited medical benefit to more innovative therapies.
This approach is not entirely new, as the Economic Committee for Health Products (CEPS), the government body responsible for setting medication prices, recently signed a new agreement with the pharmaceutical industry. This agreement involves raising the prices of innovative treatments while reducing the reimbursement of older ones. The government has also issued several decrees this summer that lower the reimbursement rates for medications with low medical benefit to 5%, down from 15%, and those with moderate benefit to 15%, down from 30%. For example, Imodium is reimbursed at 30%, while Gaviscon and Valium are covered at 15%. These changes are expected to save 100 million euros annually on medication costs.
The decision comes amid worsening public finances, with the social security system facing a deficit of 22 billion euros. Additionally, pressure from the Trump administration to increase medication prices in Europe has influenced France's approach to funding decisions for drugs. Pharmaceutical companies that have signed agreements with the Trump government are now required to align American prices with those in Europe. To avoid losing revenue, these companies have warned that they might stop selling innovative treatments in Europe unless prices are raised. Industry sources suggest that more than 40% of new treatments are not available in France due to disagreements over pricing.
Further cost-saving measures are expected, including a 100 million euro reduction in the financial flows of pharmacy groups. However, the government has not directly targeted pharmacies, following widespread strikes in late 2025 and early 2026 over a proposed reduction in the cap on discounts. These discounts are rebates provided by pharmaceutical companies to independent pharmacies, particularly on generic and biosimilar drugs, and are a significant source of their income. The government also aims to create a dedicated legal status for antibiotics to ensure their availability by adjusting their economic model through financial compensation and discounts.
France Announces Changes to Medication Reimbursement and Funding Strategies
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