Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Health the steps he is taking to secure reductions in the current cost of generic equivalents, which are high by international comparisons; and if he will make a statement on the matter. [57029/12]

Alex White (Dublin South, Labour)
Link to this: Individually | In context | Oireachtas source

The prices of drugs vary between countries for a number of reasons, including different prices set by manufacturers, different wholesale and pharmacy mark-ups, different dispensing fees and different rates of VAT. In recent years, a number of changes to the pricing and reimbursement system have been successfully introduced in Ireland. These have resulted in reductions in the prices of thousands of medicines.

The Department and the HSE have successfully finalised discussions with the Association of Pharmaceutical Manufacturers in Ireland, APMI, which represents the generic industry, on a new agreement to deliver further savings in the cost of generic drugs. Under this agreement, from 1 November 2012 the HSE will only reimburse generic products which have been priced at 50% or less of the initial price of an originator medicine. In the event that an originator medicine is priced at less than 50% of its initial price the HSE will require a generic price to be priced below the originator price. This represents a significant structural change in generic drug pricing and should lead to an increase in the generic prescribing rate.

In addition, the Health (Pricing and Supply of Medical Goods) Bill 2012, which is currently before the House and Second Stage of which was completed this week, provides for the introduction of a system of generic substitution and reference pricing for prescribed drugs and medicines. These reforms will promote price competition among suppliers and ensure that lower prices are paid for these medicines, resulting in further savings for taxpayers and patients.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

When does the Minister of State expect the arrangement he has outlined to take effect? Some generic substitutions are costing between 96% and 98% of the originator medicine, which is a very marginal saving and defeats the purpose of replacement and of whatever savings can be accrued from it. Can the Minister outline the action being taken to give effect to the commitment he has outlined?

Second Stage of the Health (Pricing and Supply of Medical Goods) Bill was debated on Monday of this week. There is some concern that the same sense of urgency does not seem to apply to it as to other Bills. A raft of legislation is being rushed through in these last days before the Christmas recess. Would this Bill not have required being moved to Committee, Report and Final Stages much more quickly? How soon will we have the opportunity to address the Bill on Committee Stage?

Alex White (Dublin South, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy's two questions are one. The generic substitution regime is to be governed by the legislation to which the Deputy referred. The legislation itself does not purport to arrange these substitutions. It gives the Irish Medicines Board the power to do so and the regime is set out in the legislation. The legislation is required for that to be achieved, as the Deputy is aware.

Second Stage of the Bill was completed on Monday afternoon and the Dáil has referred it to the Select Committee on Health. It is my earnest wish, and that of the Minister, that the Bill be expedited as soon as possible. There is no wish for any delay in the passage of the legislation. The contrary is the case. I regard it as a priority. There is, however, an enormous volume of legislation in the system at present, including legislation in the area of health. There have been difficulties in expediting different Bills.

I hope I say this without over-extending the point. We were fortunate that we had time available on Monday, because the House was sitting to deal with other matters, and we were able to get the Bill in on Monday afternoon. The quicker this can be done the better, from our point of view. There are four health Bills in the Houses currently. This is very important legislation, for the reasons I outlined in my reply and which Deputy Ó Caoláin supports, as he did on Second Stage. Anything we can do together to get the Bill through the Houses quickly will be in all our interests.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I recommit to offer every support for the fast-tracking of this Bill which I, of course, support. We should use this opportunity to consider ideas to improve the legislation. That is how we should approach legislation, as opposition voices. If we are not opposed to a measure our amendments are intent on improving it, where possible. We should use the intervening period before the resumption of the Houses in the new year, to prepare any possible amendments that might present so as to be able to expedite the passage of the Bill.

I would welcome a situation that mirrored what the Minister of State indicated in his opening response

That is a position we would like to get to. It cannot happen soon enough in my opinion.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

We have also offered support in terms of the Health (Pricing and Supply of Medical Goods) Bill and will try to encourage the committee to move as quickly as possible with that. Equally, however, it is legislation that needs to be critically analysed on Committee Stage.

There was some price referencing between Ireland and New Zealand that showed huge disparities in the cost of drugs. Even with the legislation, we are still completely out of kilter with the norms for pricing of ordinary medicines, the every day drugs that are issued on prescription and this clearly cannot be sustained. The Bill will deal with aspects of that but there are other inherent difficulties in the system that lead to increased costs for medicines for individuals and the State through the reimbursement scheme.

Alex White (Dublin South, Labour)
Link to this: Individually | In context | Oireachtas source

There has been considerable progress in the broader area. On the question of the agreements with the industry, savings have been made, although not as quickly as all of us would have hoped. The agreements have been put in place and will yield considerable benefits to the taxpayer and patients in the year ahead. I thank Deputies Kelleher and Ó Caoláin and the other Deputies who have supported the rationale behind this legislation, which is finally getting a grip on this issue at a level of legislation, putting in place a system where we can make happen what people had been talking about for so long.