Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 297: To ask the Minister for Health and Children the policy of the Health Service Executive with regard to the use of generic medicines as opposed to branded or patented medicines; the HSE's research on the cost of implications of using generic versus branded medicines; and if she will make a statement on the matter. [29776/09]

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context

Question 330: To ask the Minister for Health and Children her plans to introduce reference pricing on the pricing of medicines; and if she will make a statement on the matter. [29965/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

I propose to take Questions Nos. 297 and 330 together.

Generic drugs are available in Ireland for many medicines. In 2008, 18% of prescription items under the GMS scheme and 11% of items under the Drugs Payment Scheme and Long Term Illness Scheme were dispensed generically. My Department and the HSE supports the increased use of generics where this is appropriate.

In 2008, expenditure on proprietary drugs where there was an equivalent generic available under the GMS, Drugs Payment Scheme and Long Term Illness Scheme was €227 million. The HSE estimates that there is a price differential of approximately 10% between off-patent proprietary drugs and their generic equivalents. This suggests that approximately €23 million in savings per annum could be made if there were full substitution of products supplied under the GMS, Drugs Payment Scheme and Long Term Illness Scheme. Greater savings would, of course, arise if the prices of generic products on the Irish market were to be reduced. The HSE is in discussion with the Association of Pharmaceutical Manufacturers of Ireland (APMI) representing the generic manufacturers, to examine ways in which efficiencies in the generic supply chain can be passed on to the State and to consumers through lower prices.

A group, chaired by Dr Michael Barry, and comprising of representatives of my Department, the Health Services Executive and the Irish Medical Organisation, is currently overseeing the implementation of specific measures that would deliver more cost effective prescribing by GPs, greater use of generic preparations and quality prescribing indicators.

My Department and the HSE are continuing to examine all options for containing pharmaceutical expenditure, including the introduction of a system of reference pricing.