Ciarán Lynch (Cork South Central, Labour)
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Question 133: To ask the Minister for Health and Children her intentions with regard to reducing the cost of drugs to medical card patients to save some of the €100 million targeted under this heading in budget 2009; and if she will make a statement on the matter. [42440/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The cost of supplying prescribed medicines under the GMS Scheme (ingredient costs, pharmacy fees and VAT) was €1,048 million in 2007, an increase of 11.5% from 2006. The number of items prescribed under the GMS scheme increased from 40.5 million in 2006 to 44.4 million in 2007 (an increase of 9%). The average cost per item increased from €20.80 in 2006 to €23.27 in 2007 (an increase of2%). The Government is of the view that the cost of pharmacy services under the GMS and other community drugs schemes is not sustainable and must be reduced to a more reasonable level.

My Department and the Health Service Executive (HSE) have been reviewing the pharmaceutical supply chain with a view to seeking value for money in the cost of drugs and medicines to the State, consistent with patient safety and continuity of supply. Since September 2006, new agreements with pharmaceutical manufacturers are providing increased value for money for the State and the consumer through a reduction in the price of off-patent drugs and medicines and through the use of a wider basket of countries for pricing new drugs and medicines under the schemes.

It has been decided to introduce a range of further measures in 2009 to slow the rate of increase in these schemes and generate savings of €175m. These measures include increasing the threshold for the Drug Payment Scheme from €90 to €100 a month; new guidelines on the prescribing of nutritional supplements; and other measures to reduce drug costs. Other savings required by the 2009 budgetary framework will be achieved through the ending of automatic entitlement to a medical card for those with incomes in excess of the new threshold and through economies in drug usage.

In this regard, I have also established a group under the chairmanship of Dr Michael Barry, National Centre for Pharmacoeconomics, to consider efficient and cost-effective prescribing in the GMS and community drugs schemes. The group has been asked to recommend efficiencies and savings through more rational and cost-effective prescribing at GP level or otherwise; advise on the information and educational or training initiatives, or standards and protocols, that might be used to support more efficient and cost effective prescribing; identify areas where inappropriate use of certain drugs could be reduced; and consider the capacity for increased generic prescribing by GPs. The initial report from Dr Barry will be prepared by 1st December.