Pharma marketing budgets slammed by health insurers

There are fears that the price of drugs will continue spiralling out of control. © Keystone / Gaetan Bally

Health insurers have criticised the rising marketing budgets of pharmaceutical companies as the cost of medicaments in Switzerland spirals ever upwards. Santésuisse, the umbrella organisation for Swiss health insurers, has repeated calls to bring healthcare costs under control.

The SonntagsZeitungExternal link newspaper says that the marketing budget of Swiss pharma giant Novartis has risen 20% in the last four years to CH12 billion ($12 billion), eclipsing the CHF9 billion spent on research. Roche has increased marketing costs by 15% in the same period.

“The marketing and distribution costs of the pharmaceutical industry are disproportionately high,” complains Guido Klaus of the health insurer Helsana. But the pharma companies argue that they must spend money informing doctors of their new innovations. Studies show marketing costs at international rivals also increasing.

The rising cost of healthcare, and the resulting pressure on health insurance premiums, has been a major talking point in Switzerland for several years. In June, Santésuisse warned that health insurance premiums would likely rise 3% both this year and next.

SonntagsZeitung says the cost of cancer treatments to health insurers has risen from CHF580 million in 2013 to CHF940 million and is set to break the CHF1 billion barrier in 2019. The cost of treating patients in their homes will also reach CHF1 billion soon, Santésuisse warns.

To counter rising costs, more health insurers are taking advantage of laws introduced at the start of this year that allow pharmacists to supply certain prescription medicines without consulting a doctor, reports the Le Matin DimancheExternal link newspaper.

The Groupe Mutuel insurer in the French-speaking part of Switzerland, is ramping up cooperation with pharmacies as a result. There are at least three other insurers that have adopted similar models, says the newspaper.