Mary Harney (Dublin Mid West, Progressive Democrats)

The financial report to the board of the Health Service Executive in respect of the cumulative expenditure to end December 2005 highlighted the growth in expenditure on drugs and medicines of €65 million over the 2004 expenditure level. This represents an increase of 13% on a total expenditure figure for 2004 of €500 million on both major hospitals and the community drug schemes. This expenditure excludes the cost of drugs and medicines provided to medical card holders under the GMS scheme. The growth in expenditure is attributable to increased patient numbers and the introduction of new drug treatments.

I have previously expressed concern about the increasing cost to the Exchequer of drugs and medicines and the sustainability of trends in this regard. It is essential to secure maximum value for money for this expenditure. All aspects of the drug delivery system, from the manufacturer to the patient, are being reviewed by my Department and the Health Service Executive. A number of possible measures to address the rapidly rising medicine costs being incurred by the State are being considered. These include greater access to generic drugs and supply chain costs such as pharmacy mark-ups.

I stress that no single measure will contain the rate of increase in expenditure on medicines and drugs. International experience has shown that this is a very difficult task, as the sophistication and range of treatments continue to increase along with increased expectations on the part of patients.

On the specific issue of generic drugs, it is my intention to give patients and ultimately the taxpayer, as the biggest buyer of medicines, better access to generic drugs where this is possible and appropriate. Negotiations are currently under way with the Irish Pharmaceutical Healthcare Association and the Association of Pharmaceutical Manufacturers of Ireland, on a new national pricing and supply agreement for the supply of medicines to the health service. The agreement covers all reimbursable prescription medicines in the GMS and community drug schemes and all medicines supplied to hospitals and the HSE. It is intended to address the issue of access to generic drugs within this new agreement.

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