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Dáil Éireann debate -
Wednesday, 1 Mar 1995

Vol. 449 No. 8

Written Answers. - GMS Drugs Cost.

James Leonard

Question:

68 Mr. Leonard asked the Minister for Health the steps, if any, he proposes to take to reduce the GMS drugs bill in view of the spiralling costs of this scheme. [2056/95]

Limerick East): The Deputy will be aware that the review of the general medical services scheme, carried out in 1992, considered the issue of the increased cost of prescribing to the State in some detail. The report of the review group included a number of recommendations in this area which have formed the basis of an integrated strategy adopted with a view to rationalising the cost and use of prescription drugs and medicines within the State.

This strategy consists of a number of elements including the use of indicative drug targets, the provision of educational programmes for GPs, the establishment of a National Therapeutics Advisory Committee, and, more recently, the establishment of a National Medicines Information Centre. In addition, my Department has an agreement with the pharmaceutical industry which has frozen the price of drugs for a four year period from 1 August 1993.

Since the introduction of this strategy, there has been a dramatic change in the trend increase in expenditure on the GMS scheme. The end of year figures for expenditure on drugs and medicines in the scheme showed that expenditure in 1993 increased over the 1992 outturn figure by just 2.64 per cent while the indicators are that expenditure in 1994 will show an increase of less than 6 per cent on the 1993 outturn. In both years, therefore, there has been a significant improvement on the trend increase of an average of 11 per cent per annum which had been evidenced over the previous five years.

It is my intention to continue to pursue the policy of developing cost-effectiveness in the use of medicines through arrangements agreed with the professions and the pharmaceutical industry.

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