Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 127: To ask the Minister for Health and Children the estimated savings per year on the State drugs bill as a consequence of generic substitution. [30879/10]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 128: To ask the Minister for Health and Children the estimated savings per year on the State drugs bill as a consequence of reference pricing. [30880/10]

James Reilly (Dublin North, Fine Gael)
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Question 225: To ask the Minister for Health and Children when she willl publish legislation for reference pricing; the estimated amount of money that will be saved through the introduction of reference pricing; and if she will make a statement on the matter. [31410/10]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 299: To ask the Minister for Health and Children the saving to public funds for each year, from 2005 to 2009, if pharmacies in the State were legally required, in all cases where a valid non-branded generic alternative is available, to provide only non-branded generic drugs to all medical card holders, and all patients holding health insurance. [31631/10]

Mary Harney (Dublin Mid West, Independent)
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I propose to take Questions Nos. 127, 128, 225 and 299.

The Government has decided to introduce a system of reference pricing combined with generic substitution of medicines. This will promote price competition and deliver ongoing savings for both the State and for patients. Last month, I launched a report, prepared by a joint working group made up of officials and health care professionals from my Department and the HSE, which sets out a proposed model for the operation of generic substitution and reference pricing in Ireland. I expect to see significant progress on the implementation of this initiative, including the identification of legislative and administrative changes required to give it effect in 2011. My Department is currently preparing Draft Heads of a Bill for consideration by the Government. Once prepared, the Draft Heads will be submitted to Government for approval in the normal way.

Reference pricing will deliver direct savings by limiting reimbursement to a common reference price for groups of interchangeable medicines. Indirect savings will also occur as a result of increased price competition. The level of savings will depend upon a range of factors. These include the number and type of products included in reference groups, the relative and absolute prices of products within reference groups and the market response for each reference group. It is anticipated that reference pricing will be initially targeted at high volume products that have the potential to achieve significant savings. It is also of strategic importance that this model is in place as a significant number of drugs are due to come off patent in the coming years. There is no available estimate of potential savings from generic substitution between 2005 to 2009 as requested by the Deputy.