Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 1003: To ask the Minister for Health his estimate for the savings that will be made from measures to reduce the cost of medicines in our health system, including centralised wholesale distribution of drugs, using lower cost generic drugs and tackling over-prescription and wastage. [24043/11]

Róisín Shortall (Dublin North West, Labour)
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The Department of Health is not currently considering any proposals regarding the introduction of centralised wholesale distribution of drugs. There have been a range of measures introduced to reduce costs to the State associated with the distribution of drugs to community pharmacies by wholesalers. These include a reduction in the wholesale mark-up paid to community pharmacists from 17.66% to 8% for the majority of drugs reimbursed under the community drugs schemes. There has also been a reduction in the mark-up paid to wholesalers from 17.66% to 10% for the supply of drugs under the High-Tech scheme. Savings under these measures are estimated at approximately €100 million.

The Department of Health is finalising the Heads of the Pricing and Supply of Medicines Bill. This legislation will introduce a system of reference pricing and generic substitution for prescribed drugs and medicines. A number of high volume medicines are expected to come off patent in the coming years and this legislation will increase the scope for savings through the greater use of generic medicines. It is expected that the legislation will promote price competition among suppliers and ensure that lower prices are paid for these medicines resulting in significant savings for taxpayers and patients.

The HSE is working in partnership with key health professionals to develop pathways for quality prescribing, promoting an extended role of the use of clinical protocols for the delivery of evidence-based prescribing and developing the role of community pharmacists and the introduction of patient-held prescribing records. In addition, the HSE Primary Care Reimbursement Service has introduced an on-line facility for GPs to review and self-audit their individual prescribing practice in comparison with the national average, which has been standardised for the individual GP's patient profile.

I intend to undertake a closer examination of prescribing patterns and I hope to finalise the details of this initiative shortly.