Germany Faces Rising Healthcare Strains: High Drug Prices and Medical Service Shortages

In early 2026, Germany continues to grapple with significant challenges in its healthcare system, notably the soaring costs of medications and a shortage of medical professionals and pharmacies. Jens Baas, chairman of the Techniker Krankenkasse (TK), underscored the issue of exorbitant drug prices in Germany compared to nations like Norway, South Korea, and Japan, calling for urgent legislative measures to reduce these financial burdens. Baas estimated that aligning the prices of the 30 highest-grossing drugs with international levels could save the statutory health insurance system around 4.37 billion euros annually. Furthermore, he advocated for lowering the value-added tax on pharmaceuticals from 19% to 7% to further ease the cost pressures on patients.

Concurrently, Saxony-Anhalt reflects broader trends in the medical workforce across Germany. Despite a rise in the number of doctors to 10,332 by the end of 2025, shortages persist, particularly in under-served areas. While hospitals and medical centers have seen an increase in doctors, the number of independent practitioners has declined by 30 to 2,309, with a growing shift toward part-time roles noted. Regionally, family doctor positions remain difficult to fill, with 172 vacancies in undersupplied areas such as Salzwedel and Sangerhausen.

The dental sector also shows signs of strain with 80 dental practices up for sale but only 30% finding successors, leading to over 50 permanent closures and a loss of 250 practices in five years. Likewise, pharmacies in Saxony-Anhalt dropped from 556 to 539, representing the largest single decline recorded and contributing to a national 50-year low in pharmacy numbers.

These trends highlight the dual challenges Germany faces: controlling healthcare costs while ensuring sufficient medical service availability for its population, a delicate balance requiring swift policy action and structural adjustments.