The government is planning to save €1.7 billion on healthcare spending in 2025, in response to the surge observed in the first months of the year, which has prompted a surge in the pharmaceutical industry, which is refusing further price cuts.
The Minister of Labor, Health, Solidarity and Families, Catherine Vautrin, stated during a hearing at the National Assembly that "savings of up to 500 million euros" will be implemented in the pharmaceutical sector and that a "reserve of 700 million euros" will be released to finance hospital and medico-social sector expenses.
The savings plan also includes postponing until January 1, 2026, the fee increases for physiotherapists and specialist doctors, which were initially scheduled for July 1, 2025, Ms. Vautrin said.
This represents "75 million euros for each" of these categories, she indicated.
"We are fully aware of the efforts required of everyone, but we are committed to the sustainability of the social model," declared Ms. Vautrin.
While recognizing "the scale of the government's task in restoring public finances," pharmaceutical companies are firmly opposed to any further price cuts.
"We regret the government's intention to further reduce drug prices," their professional union (Leem) responded in a message to AFP.
The Leem reiterates that drug prices in France are already among "the lowest in Europe," that they "undermine patients' access to treatment" and "undermine the competitiveness of France and Europe."
– Sustainability of pharma “at stake” –
"Beyond the short-term budgetary problem, it is the question of the sustainability of the pharmaceutical industry in France that is at stake," believes Leem.
At the end of 2024, the government and pharmaceutical manufacturers had initiated a contractual process to anticipate the consequences of an overrun and generate "600 million euros in savings."
The idea was to "replace the savings from price cuts that are harmful to our sector and to France with efficiency measures," recalls the Leem, which had proposed, in particular, better use of medicines and early payment of discounts.
But an agreement could not be reached, the two parties said on Wednesday.
"We will implement these savings to the tune of €500 million. We have no other choice," assured Ms. Vautrin, explaining that the €500 million savings target on medicines takes into account "a smaller €100 million overrun" in spending in 2024.
Regarding generic drugs, whose prices are much lower than those of patented drugs, "consultations began on June 20 and will be finalized in the coming weeks" with the aim of "freeing up 50 million euros," the minister calculated.
Finally, on medical devices, the government is aiming for savings of 25 million euros.
– Work stoppages –
The savings plan includes a further 100 million euros in daily allowances paid by health insurance in the event of work stoppage.
On this last point, it will be necessary to continue efforts in 2026, warned the minister.
The proposals made to this effect on Tuesday by the Health Insurance are "extremely interesting" and will allow "us to go much further" next year, said Ms. Vautrin.
The government's announcement of this savings plan follows the warning given on June 18 by experts from the health insurance spending alert committee.
According to these experts, given the rate of expenditure observed over the first four months of the year, this should exceed the planned expenditure (265.9 billion euros) by 1.3 billion euros.
Ms. Vautrin also indicated that the government "had no other solution" than to support the reform of the pricing of medical transport by taxi, which has sparked protests and blockades by professionals in recent weeks.
"We have listened to the concerns" of taxi drivers and "analyzed their proposals," she said. "Final discussions will take place on certain parameters, but we have no other solution than a reform of the pricing model," and "we will implement this reform," she concluded.
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