Jim Daly (Cork South West, Fine Gael)
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To ask the Minister for Health the position regarding a medical card holder paying the difference in cost between a generic drug and a branded drug and for pharmacies to accept the payment for the difference in cost; and if he will make a statement on the matter. [47732/12]

Alex White (Dublin South, Labour)
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The Health (Pricing and Supply of Medical Goods) Bill 2012 provides for the introduction of a system of generic substitution and reference pricing. Generic substitution allows pharmacists to substitute a cheaper generic equivalent, at the patient’s request, when a more expensive product has been prescribed. Reference pricing involves setting a common reimbursement amount for selected groups of medicines, which will be done by the HSE. Only the reference price is reimbursed by the State. Eligible patients can avoid out-of-pocket payments by opting for a generic medicine at or below the reference price.

Reference pricing coupled with generic substitution provides patients with an incentive to opt for the cheapest available product, but does not impose any unavoidable additional costs on patients.