Germany's lower house of parliament passes healthcare reform

Germany's parliament has approved a bill to overhaul the country's health insurance system, aiming to save €16.3 billion and reduce financial burdens on companies.

‌Germany's lower ​house of parliament on Friday approved a bill to overhaul the creaking health insurance system ‌that has drawn fierce opposition from drugs companies which fear tougher pricing measures will harm profitability and reduce investment. The bill, aimed at saving €16.3 ‌billion ($18.63 billion) now goes to the Bundesrat, the legislative body representing Germany's ‌16 federal states, where failure to win a majority could send it to a mediation committee.

On Friday morning, sources told Reuters that Bundesrat approval was likely. Containing ⁠health ​insurance expenses, ⁠which are shared by workers and employers, is a central part of Chancellor Friedrich Merz's ⁠push to revive the economy by reducing financial and bureaucratic burdens on ​companies.

The healthcare reform is part of a long-awaited package announced ⁠by the government last week. Alexandra Bishop, AstraZeneca president for Germany, said the law ⁠penalises ​innovation and puts investments in Germany at risk.

"This is not a signal for the future," Bishop said. "What we need is a ⁠policy that treats health and economic strength as one – and recognises ⁠innovation as ⁠a competitive advantage, not a target for cuts." ($1 = 0.8747 euros)