Ann Phelan (Carlow-Kilkenny, Labour)
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647. To ask the Minister for Health the number of families who exceeded the drug rebate limit of €144 per month in each of the years 2011, 2012 and 2013; the amount that was paid out to such claimants in those years; if he will quantify the savings to his Department on a yearly basis for 2011, 2012 and 2013 due to savings on the costs of medicines; and if he will make a statement on the matter. [27272/14]

Alex White (Dublin South, Labour)
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The State has introduced a series of reforms in recent years to reduce pharmaceutical prices and expenditure. These have resulted in reductions in the price of thousands of medicines. Price reductions of the order of 30% per item reimbursed have been achieved between 2009 and 2013; the average cost per item reimbursed is now running at 2001/2002 levels.

A major new deal on the cost of drugs in the State was concluded with the Irish Pharmaceutical Healthcare Association (IPHA) in October 2012. The IPHA agreement provides that prices are referenced to the currency adjusted average price to wholesaler in the nine EU member states. The gross savings arising from this deal will be in excess of €400 million over 3 years. €210 million from the gross savings will be available to fund new drugs.

A new agreement was also reached in October 2012 with the Association of Pharmaceutical Manufacturers in Ireland (APMI), which represents the generic drugs industry. Under this Agreement, the maximum price the HSE paid for generic products was 50% of the initial price of an originator medicine. Recent negotiations with the APMI have resulted in additional price reductions being agreed. From 1 May 2014, the maximum price the HSE will pay for generic products will be 40% of the initial price of an originator medicine. This will result in the price differential between off-patent drugs and most generic equivalents increasing from 5% to approximately 20%. It is estimated that the combined gross savings from the IPHA and APMI deals will be in excess of €148 million in 2014.

The Health (Pricing and Supply of Medical Goods) Act 2013 introduced a system of generic substitution and reference pricing. Reference pricing involves the setting of a common reimbursement price, or reference price, for a group of interchangeable medicines. It means that one reference price is set for each group or list of interchangeable medicines, and this is the maximum price that the HSE will reimburse to pharmacies for all medicines in the group, regardless of the individual medicine’s prices. It is expected that referencing pricing will save approximately €50 million in 2014.

The HSE is responsible for the administration of the primary care schemes, therefore, I have asked the HSE to examine the specific issues raised by the Deputy and to reply to her as soon as possible.