Joanna Tuffy (Dublin Mid West, Labour)
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Question 193: To ask the Minister for Health and Children the measures she has taken to ensure that pharmacists pass on reductions in the cost of medicines to consumers; and if she will make a statement on the matter. [8647/10]

Mary Harney (Dublin Mid West, Independent)
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The price of medicines supplied to patients in Ireland under the GMS and community drugs schemes is built up as follows. Firstly, ex-factory prices are set in accordance with agreements between the Health Service Executive (HSE) and pharmaceutical manufacturers. Secondly, in addition to reimbursing pharmacists the ex-factory price of the product, the HSE also pays a wholesale mark-up of 10%, a dispensing fee of up to €5 and a 20% retail mark-up. (This is not applicable in the case of medical card prescriptions).

My Department and the HSE have implemented a number of reforms to reduce the cost of medicines for both the State and patients. Under the terms of Agreements in 2006 between the HSE and pharmaceutical manufacturers, price cuts of 35% were applied to all proprietary products for which generic alternatives are available on the Irish market. Following discussions that I had with the Irish Pharmaceutical Healthcare Association, its member companies have agreed to introduce price cuts of 40% for a large number of off-patent drugs and medicines with effect from 1 February.

It is important to note that these price cuts apply to all transactions and not just those under the various State schemes.

It is my view that the reductions in prices and mark-ups should be applied to all transactions where a person produces a Drug Payment Scheme (DPS) card, including transactions where expenditure has not reached the €120 monthly threshold under the DPS scheme.

I have been disappointed to learn that some pharmacists are not applying these reductions in prices and mark-ups in this manner. I have raised this matter with the Irish Pharmacy Union and intend to pursue it further.