Jan O'Sullivan (Limerick East, Labour)
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Question 105: To ask the Minister for Health and Children the cost of professional fees paid under the general medical services scheme; the measures that have been taken to reduce the cost of these fees since 2008; the savings achieved; and if she will make a statement on the matter. [27370/10]

Jan O'Sullivan (Limerick East, Labour)
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Question 106: To ask the Minister for Health and Children the cost to the Exchequer of drugs paid for under different schemes; the measures that have been taken to reduce these costs since 2008; the savings achieved; and if she will make a statement on the matter. [27371/10]

Mary Harney (Dublin Mid West, Independent)
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I propose to take Questions Nos. 105 and 106 together.

In 2008, payments to General Practitioners (GPs) for services provided under the GMS scheme totalled approximately €460 million. In addition, GPs were paid approximately €15m in respect of other schemes. Figures in respect of 2009 are not yet available. In the same year, payments to pharmacies amounted to approximately €1,628 million. This included €1,145 million under the GMS scheme, €315 million under the Drugs Payment Scheme and €138 million under the Long Term Illness Scheme. These figures include the ex-factory costs of the medicines supplied, which amounted to approximately €1,205m, plus any applicable wholesale and retail mark-ups and dispensing fees.

In 2009 I made a number of regulations under the Financial Emergency Measures in the Public Interest Act 2009 to reduce the fees and allowances payable to health professionals, including GPs and pharmacists. In the case of pharmacists, this included reductions in the wholesale and retail mark-ups paid on medicines supplied under the GMS and community drugs schemes. It is understood from the Health Service Executive (HSE) that savings in the region of €16 million and €60 million were achieved from the reductions in payments to GPs and pharmacy contractors respectively during 2009.

As required by the Financial Emergency Measures in the Public Interest Act 2009, I have commenced a review of the operation, effectiveness and impact of the revised fees and allowances. In February this year price reductions of 40% were agreed for a large number of medicines supplied by Irish Pharmaceutical Healthcare Association member companies. In addition, the rebate paid to the HSE in respect of drugs supplied under the GMS scheme has been extended to include all community drugs schemes and increased from 3.53% to 4%. The combination of these measures plus consequent savings in wholesale and retail mark-ups are expected to result in savings of approximately €94m in a full year.

I am confident that the combination of measures being applied this year in the community pharmacy sector will save over €200 million on what otherwise would have been the cost to the Exchequer.