Written answers

Wednesday, 19 October 2016

Department of Health

Medicinal Products Prices

Photo of Colm BrophyColm Brophy (Dublin South West, Fine Gael)
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121. To ask the Minister for Health his plans to reduce the cost of drugs required by sufferers of Crohn’s disease; and if he will make a statement on the matter. [30993/16]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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In recent years a number of new initiatives have been implemented to reduce the cost of all medicines paid by the State and patients.

The implementation of pricing agreements with the pharmaceutical industry has delivered lower prices. Most recently, the new four year Framework Agreement on the Supply and Pricing of Medicines with the Irish Pharmaceutical Healthcare Association provides for an annual downward only price realignment which will ensure that the prices of medicines in Ireland continue to reduce in line with price reductions across the reference countries. This Agreement is expected to deliver savings of €600 million from IPHA companies, with an additional €150 million expected to be delivered by non-IPHA suppliers of branded medicines.

The implementation of generic substitution and reference pricing has also contributed to significant price reductions. The prices of reference priced products are generally of the order of 70% - 80% lower than the prices paid when medicines were on patent. The implementation of generic substitution and reference pricing delivered savings of €47 million in 2014 and €94 million in 2015. This ensures that generic drug prices in Ireland will continue to fall towards European norms.

As a result of these measures, the average price of an item dispensed on the General Medical Services Scheme has reduced to below the price paid in 2001 and the average Drug Payment Scheme price is below the price paid in 2000.

The State also provides a number of supports for persons with the cost of medicines. Under the provisions of the Health Acts, medical cards are provided to persons who are unable, without undue hardship, to arrange health services for themselves and their dependants. In the assessment process, the HSE can take into account medical costs incurred by an individual or a family. Crohn's disease suffers aged over 70 will also benefit from the prescription charge changes outlined in Budget 2017. The Government intends to reduce the per item prescription charge by 50c, from €2.50 to €2.00, and reduce the monthly cap by €5, from €25 to €20. This initiative will require changes in primary legislation and pharmacy payments systems. Subject to the enactment of the necessary legislation, the Government intends that the reductions will take effect on 1 March 2017.

Patients may also be able to claim tax relief on the cost of certain medical expenses. This includes medicines prescribed by a doctor, dentist or consultant. Relief is at the standard rate of 20%.

The Programme for Partnership Government also includes a commitment to reduce the cost of medicines by reducing the annual required co-payment on the Drugs Payment Scheme and further reducing prescription charges for medical card holders.

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