Vol. 513 No. 6
294 Mr. Allen asked the Minister for Health and Children the discussions, if any, which have taken place between his Department and the Department of Finance regarding the serious underestimation of drug costs by the General Medical Services (Payments) Board in recent years; and the steps, if any, being taken to eliminate this problem for the future. [3195/00]
Arising from discussions between my Department and the Department of Finance on the financing of the General Medical Services (Payments) Board, a sum of £90 million was provided in 1999 by way of Supplementary Estimate to fund a shortfall in expenditure on drugs schemes which in the main are demand-led. Approximately £50 million of this related to accumulated shortfalls arising in the period 1997-99. These shortfalls arose largely from higher than anticipated expenditure on the new high tech scheme introduced in 1997 and also above average expenditure on other newer drug therapies for the treatment of cardiovascular disease, mental illness and asthma. Improved estimating and reporting arrangements have now been put in place to ensure that adequate funding is in place to meet the future funding requirements of the drug schemes.
