Written answers

Tuesday, 22 October 2013

Department of Health

Departmental Expenditure

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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588. To ask the Minister for Health if he will provide the full-year effect of all expenditure reductions for his Department as set out in the Expenditure Report 2014, as provided for in the Expenditure Report 2013. [44748/13]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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The gross current budget for the Health Sector for 2014 is €13,263m, a reduction of €361m on the 2013 allocation of €13,624m. A total of €666m in health savings measures have been identified in the context of the Health Estimates to meet the overall health expenditure ceiling reduction of €361m, commitments under the Programme for Government of €57m and health service pressures of €248m. Some of the savings measures represent the full year effect of initiatives taken in 2013, while others are new savings targets for 2014.

In terms of the projected full-year effects, the table below provides details regarding ten of the fifteen measures concerned. Full-year savings from the remaining five measures are more difficult to quantify at this stage for reasons of timing and the nature of the savings involved. Further detail in relation to these measures is set out below. It should be noted that a number of the measures I have taken here are new initiatives, and for this reason I believe that we should take account of the learning from them as we implement change and reform our health system.

At my request, the Government has decided that the Secretaries General of the Departments of Health, Public Expenditure and Reform and the Taoiseach will engage in an intensive exercise to ensure verification and implementation of the proposed savings in the Health Vote.

Medical Card Probity and Pay related savings to be achieved under the Haddington Road Agreement.

Extremely ambitious savings targets have been set in relation to medical card probity and for pay savings to be achieved under the Haddington Road Agreement. These savings targets will be the subject of the verification and implementation exercise mentioned above.

Generic Substitution and Reference Pricing

Generic substitution and reference pricing is being introduced on a phased basis. It is not possible, at this juncture, to provide accurate figures regarding the potential savings after 2014, as these depend on various factors including prevailing prices, number of competitors, availability of substitute products, and market dynamics.

Instead of retention of full medical card on return to work, give GP Visit Card

It is not possible, at this juncture, to provide accurate figures regarding the potential savings from this measure after 2014, as it will require primary legislation and a detailed costing exercise as to its implications.

Nurse Bank

The full-year saving achievable will be determined in the light of experience with implementation of the Nurse Bank in 2014.

MeasureSavings in 2014
€million
Estimated Full Year Effect
€million
Generic Substitution and Reference Pricing50(see note above)
IPHA/APMI Agreement28150
Full year impact of FEMPI fee reductions372014 saving is carry over from 2013 fee reductions
Full year impact of increase in prescription charges42014 saving is carry over from Budget 2013 increase
Full year effect of income thresholds and probity202014 saving is carry over from Budget 2013 measure
Reduce Income Thresholds for the over 70s Medical Card (€900 p.w. couple and €500 p.w. single) 2549
Additional Delisting of Drugs from the GMS reimbursable drugs10Full year effect applies in 2014
Increase Prescription Charges to €2.50 per item with €25 cap43Full year effect applies in 2014
Medical Card Probity113(see note above)
Instead of retention of full medical card on return to work give GP Visit Card11(see note above)
Charge all Private Patients in Public Hospitals3045
Fair Deal - Full year effect of enactment of the Health Amendment Act 2013 adjusting asset contribution102014 saving is carry over from 2013 measure
Increase in Charge for Licensing of Tobacco Retailers55
Nurse Bank12(see note above)
Pay Related Savings268(see note above)

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