Jim O'Keeffe (Cork South West, Fine Gael)
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Question 128: To ask the Minister for Health and Children the progress made by both the Health Service Executive in their discussions with an association and the group chaired by a person (details supplied) in implementing measures that would deliver more cost effective prescribing by general practitioners, greater use of generic preparations and quality prescribing indicators, ensuring that lower prices can be passed onto the customer; and her views on the potential savings to be achieved from the use of branded generic drugs. [39231/09]

Mary Harney (Dublin Mid West, Independent)
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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. All options for containing pharmaceutical expenditure pharmaceutical expenditure, including the introduction of a system of generic reference pricing, the promotion of more cost-effective prescribing by GPs, greater use of generic preparations and quality prescribing indicators are under consideration.

A group, chaired by Dr Michael Barry, and comprising of representatives of my Department, the Health Services Executive and the Irish Medical Organisation, was established to oversee the implementation of specific measures that would deliver more cost effective prescribing by GPs, greater use of generic preparations and quality prescribing indicators. In the past year the HSE has worked closely with healthcare professionals to develop quality prescribing indicators for oral nutritional products. This will reduce wastage and inappropriate prescribing of these products while ensuring that patients can access them as required. I am due to meet with the IMO shortly to discuss how the implementation of other measures can be progressed.

Under the terms of the current agreements between the HSE and pharmaceutical manufacturers, price cuts of 35% have been applied to all off-patent proprietary products for which generic alternatives are available on the Irish market. The National Centre for Pharmacoeconomics has estimated that off-patent price reductions will have resulted in savings of €250 million in the period from March 2007 to August 2010. The HSE has given notice to both the Association of Pharmaceutical Manufacturers of Ireland and the Irish Pharmaceutical Healthcare Association of its intention to renegotiate the agreements which govern the supply terms, conditions and prices of medicines supplied under the GMS and other community drugs schemes. Further savings will be sought by the HSE when the agreements are renegotiated in 2010.

Other reforms have also been introduced to lower the cost of medicines. I recently reduced the wholesale mark-up payable on medicines from 17.66% to 10% and reduced the retail mark-up payable under certain schemes from 50% to 20%. Savings from the measures have been estimated at €55 million for 2009 and €133 million on a full year basis.

It is my intention to introduce a system of reference pricing, coupled with generic substitution by pharmacists at the patient's request. My Department and the HSE are examining options to progress this initiative which has the potential to promote the usage of cheaper generic medicines and provide further savings from reductions in prices.