Vol. 492 No. 4
19 Mr. M. Higgins asked the Minister for Health and Children the reason for the wide variation in the price of drugs depending on whether they are dispensed under the general medical service, the long-term illness schemes or the drugs cost subsidisation scheme. [14246/98]
The price to wholesalers — wholesale price — of drugs and medicines prescribable and reimbursable in the general medical services — GMS — scheme and in the community drug scheme is determined in accordance with the agreements between the Department of Health and Children, the Irish Pharmaceutical Healthcare Association and the Irish Pharmaceutical Manufacturers Association. Under the general medical services scheme pharmacists are reimbursed the trade price, that is, ingredient cost of the drugs, medicines and appliances dispensed plus the appropriate dispensing fee and VAT where applicable.
In the case of medicines reimbursed under the community drugs schemes, that is the drugs cost subsidisation, drugs refund and long-term illness schemes, pharmacists are reimbursed the ingredient cost of the medicine plus the retail mark-up on ingredient cost, normally 50 per cent, and a standard fee. The difference in price between the GMS and the community drug schemes is therefore accounted for by the mark-up on the ingredient cost under the community drugs schemes.
