Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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To ask the Minister for Health if he will provide the full details of the deal negotiated with the Irish Pharmaceutical Healthcare Association as announced on 15 October 2012; if he will provide details for the cost savings calculations or estimates and for a breakdown of same by scheme and year on year; and if he will make a statement on the matter. [45704/12]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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To ask the Minister for Health the scope and detail of the Health Service Executive community drug schemes drugs price review; when and the way this review will be undertaken; the methods to be employed and the expected cost savings to be delivered; and if he will make a statement on the matter. [45706/12]

Tommy Broughan (Dublin North East, Labour)
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To ask the Minister for Health if he will provide details of the new agreement between the State and the Irish Pharmaceutical Healthcare Association with a breakdown of the projected €400 million savings over the next three years; if he will provide an estimate of the cost to the State over the next three years of that element of the agreement which relates to the reimbursement of all new medicines; and if he will make a statement on the matter. [46247/12]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 589, 591 and 658 together.

I announced on the 15th October, 2012 that intensive negotiations involving the Irish Pharmaceutical Healthcare Association (IPHA), the HSE and the Department of Health had reached a successful conclusion with a major new deal on the cost of drugs in the State.

The main provisions of the new Agreement are as follows:-

-With effect from 1st November 2012, the ex factory price of all patent protected medicines reimbursed in Ireland prior to September 2006 will be realigned - downwards only - to the average of the basket of 9 countries (Austria, Belgium, Denmark, Finland, France, Germany, Netherlands, Spain, and UK).

-With effect from 1st November 2012, the ex factory price of all patent expired medicines which do not have a generic equivalent on the Irish market will be realigned - downwards only - to the average of the basket of 9 countries.

-With effect from 1st November 2012, the ex factory price of all patent expired medicines which have a generic equivalent on the Irish market will be reduced to 60% of the original price. With effect from 1st November 2013, the price will be reduced to 50% of the original price.

-In the case of medicines which go off patent after 1st November 2012, the ex factory price will drop to 70% of the original price as soon as a generic equivalent comes on the Irish market. After 12 months, the price will be reduced to 50% of the original price.

-With effect from 1st January 2013, the ex factory price of medicines introduced to Ireland after September 1st 2006, will be realigned - downwards only - to the average of the basket of 9 countries.

The deal will deliver a number of important benefits, including

-significant reductions for patients in the cost of drugs,

-a lowering of the drugs bill to the State,

-timely access for patients to new cutting-edge drugs for certain conditions,

-Reducing the cost base of the health system into the future,

This deal, combined with an interim agreement reached with IPHA in the Summer, means that €16 million in drug savings will be made this year. It is estimated that the deal will generate savings of up to €116m in 2013, €136m in 2014 and €150m on 2015. A breakdown of savings by scheme is not currently available. The cost of new drugs over the next three years is estimated to be €210 million.

This landmark deal with IPHA comes as legislation aimed at reducing the cost of generic drugs makes its way through the Oireachtas. The Health (Pricing and Supply of Medical Goods) Bill 2012, which will introduce a system of reference pricing and generic substitution, is a priority for this Government. It is expected that this Bill will be enacted before the end of the year and will deliver further savings in the costs of medicines for the health service and private patient.

Details of the IPHA member companies products which will be subject to price reductions on the 1st November are available on the HSE's website at the following link: .