Dáil Éireann debate -
Thursday, 20 Feb 2003

Vol. 561 No. 6

Written Answers - Drugs Payment Scheme.

Michael Ring

Question:

113 Mr. Ring asked the Minister for Health and Children if, in relation to the drugs refund scheme, a number of persons who overpaid years ago have been refunded; if so, the number of people who have been refunded; and the position being taken by his Department on it. [5112/03]

Minister for Health and Children (Mr. Martin):

The drugs payment scheme replaced the drug cost subsidisation and drugs refund schemes on 1 July 1999. The DPS provided that families only had to meet the first €53.33 a month of spending on approved prescribed medicines. The DCSS threshold was €40.63 a month per certified individual. It was €114.28 for the DRS per quarter for each eligible person and dependents.

The DPS was initially introduced on an administrative basis with the intention that regulations to underpin its operation would be introduced at a later date. Regulations fixing the threshold for the new scheme at €53.33 per month could have been made in July 1999 under section 59 of the Health Act 1970. However, as Government approval had been obtained to amend that section, it was decided to defer making the regulations until the Act was actually amended. At that time it was envisaged that the amending provision would be enacted very quickly. Subsequently difficulties and delays arose in securing drafting time and parliamentary time for new legislation. Following further consideration and legal advice obtained from the Attorney General's office in October 2000, regulations to fix the threshold at €53.33 per month were made under the existing section 59 of the 1970 Act and came into effect on 1 March 2001.

The aggregate financial benefits for patients under the DPS are clearly significantly greater than the old schemes. The total patient benefit under the DRS and the DCSS was €95 million in 1998, the last full year of operation. In contrast the DPS subvention to patients was €140 million in 2000, the first full year of operation. This sum rose to €178 million in 2001, an increase of 87% in three years.

As claimants have derived greater overall benefits, as reflected in the significant increase in spending, the issue of possible refunds was not addressed at that time. My Department has reviewed the position in relation to this question. The value of individual refunds would be between €1 and €250 with most refunds at the lower end of the range. Many claimants would have also received tax relief on these expenses.

Taking account of the fact that overall the new scheme has delivered a considerable aggregate improvement in supporting individuals and families with drug costs and the administrative complexity and costs that would arise, my Department does not propose taking any further action on this matter at this time.