For a new drug in Germany, the price is negotiated, but not freely. First the Federal Joint Committee decides whether the drug has an added benefit over existing treatment. Then the umbrella body of the statutory health insurers negotiates a reimbursement price with the manufacturer. The talks take place on the basis of that decision. As a rule, if the committee found no added benefit, the price should not lead to higher annual treatment costs than the comparison therapy. If the two sides do not agree within six months, an arbitration board sets the terms, including the price.