Seanad debates

Tuesday, 26 March 2013

Adjournment Matters

Medicinal Products Prices

5:50 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael) | Oireachtas source

The NCA's survey found substantial variation in the prices charged for prescription medicines in pharmacies. At national level, the percentage difference found in the prices of 39 individual prescription medicines ranged from 37% to 199%, the average percentage difference being 56%. The HSE reimburses pharmacists for products dispensed under the general medical services scheme and other community drug schemes, for example, the drug payment scheme, DPS, in accordance with the reimbursement rates set out in the list of reimbursable items.

Under the Financial Emergency Measures in the Public Interest Act 2009, the fees and allowances paid by the HSE to pharmacists were reduced in 2009 and again in 2011. These reductions resulted in cumulative savings to the HSE of approximately ¤154 million per annum. These measures included a reduction in the wholesale mark-up on drugs from 17.66% to 8%. In addition, the retail mark-up payable under the DPS and the long-term illness scheme was reduced from 50% to 20%. The reduction in the cost of medicines should be of benefit to all patients who hold a DPS card, whether they reach the ¤144 threshold per month. I would be disappointed if all pharmacists were not passing on the benefits of lower prices and mark-ups to patients.

I urge customers to consult the HSE website to check the prices of their prescription medicines. If they are being charged more than the price listed - that is, if they are being charged more than a 20% retail mark-up - they should raise it with their pharmacy. It is open to patients to move their custom to a different pharmacy if they are dissatisfied with the prices being charged by their current pharmacy. The Department of Health is also raising the issue of price transparency with the regulatory body for pharmacists, the Pharmaceutical Society of Ireland, PSI. While it would not be possible to display the price of each of the approximately 7,000 medicines currently on the market in Ireland, the PSI is being asked to examine how greater price transparency can be achieved.

In addition to the measures I have outlined, the Health (Pricing and Supply of Medical Goods) Bill 2012, which passed Committee Stage in the Dáil on 19 March, provides for the introduction of a system of generic substitution and reference pricing. It is important to note that the top two products identified by the NCA as having the largest percentage price variation nationally are Losec, which was mentioned by the Senator, and Zoton. Both of these products belong to a group of drugs known as proton pump inhibitors and this group will be one of the first to be assessed for interchangeability and reference pricing once the Health (Pricing and Supply of Medical Goods) Bill 2012 is enacted. This legislation will promote price competition among suppliers and pharmacists and ensure lower prices are paid for these medicines resulting in further savings for both taxpayers and patients.

On behalf of the Minister, I thank the Senator for raising this matter, which is of concern to many people.

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