The Provision of Medical Aid was Suspended Following a Bundeskartellamt Investigation into Possible Competition Violations

The Bundeskartellamt investigated and ruled against statutory health insurance companies (To associations of medical aid suppliers: Sanitätshaus Aktuell AG, EGROH, rehaVital, Reha-Service-Ring, Cura-San and Bundesinnungsverband Orthopädietechnik) for coordinated price increases. Thus, anti-competitive price coordination in the provision of medical assistance by the Working Group of Associations of Medical Assistance Suppliers ("Arbeitsgemeinschaft von Hilfsmittelverbänden", ARGE) was brought to an end.

The process is briefly as follows;

  • Medical aid providers, such as medical supply stores, orthopedic technicians, and others, are allowed to form national associations to collectively bargain with health insurance companies on the provision of medical assistance to patients. Only in this way can medical aid providers ensure that all patients are provided with assistance throughout Germany.
  • The Association of Medical Aid Providers "ARGE" represents around 80 percent of all outlets providing technical assistance for rehabilitation in Germany. In the negotiations between ARGE and the health insurance companies, ARGE thus acted as a quasi-monopolist.
  • In March 2022, the Bundeskartellamt initiated a cartel administrative investigation into these practices.
  • Co-operation in the supply of medical aids is legally possible, but the law is violated when all the associations concerned cooperate to the extent that competition is almost completely eliminated.
  • ARGE members have imposed price increases on health insurance companies.

The Bundeskartellamt accepted the commitments proposed by the parties and declared them binding in a decision.

You can access the full text of the announcement published by the official institution regarding the process in question here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr