Bernard Durkan (Kildare North, Fine Gael)
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140. To ask the Minister for Health the extent to which the cost of medicine has been reduced as a result of strategic sourcing of products, generic prescribing or other methods to reduce costs; and if he will make a statement on the matter. [21197/15]

Kathleen Lynch (Cork North Central, Labour)
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The Government has introduced a series of reforms in recent years to reduce the prices of drugs and medicines which are paid for by the HSE. This has 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 items reimbursed is now running at 2001/2002 levels.

In recent times, the Government has entered into a number of price reduction Agreements with both the Irish Pharmaceutical Healthcare Association (IPHA) and the Association of Pharmaceutical Manufacturers in Ireland (APMI) delivering 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, and reducing the cost base of the health system into the future. Cumulative savings and cost avoidance generated from these Agreements between 2006 and 2014 amount to approximately €1.5 billion.

Another important reform measure introduced to reduce the cost of drugs was the implementation of generic substitution and reference pricing, as provided for under the Health (Pricing and Supply of Medical Goods) Act 2013.Reference pricing has generated approximately €50 million in savings in 2014 and is expected to deliver a further €25 million in 2015. Reference prices will ensure that generic prices in Ireland will fall towards European norms.

Further reductions in the price of medicines in Ireland remains a priority for the Government.