Vol. 562 No. 6
22 Mr. Howlin asked the Minister for Health and Children if it is now intended to reimburse persons who were overcharged as a result of the failure to make the appropriate regulations on time; the total amount involved; the numbers expected to qualify for reimbursement; if it will be a monetary refund or a voucher; and if he will make a statement on the matter. [6633/03]
The drugs payment scheme, which replaced the drug cost subsidisation and drugs refund schemes in 1999, was initially introduced on an administrative basis. It was intended that regulations to underpin its operation would be introduced at a later date following amendment of the relevant section of the 1970 Health Act. However, amendment of the Act was delayed. Following further consideration and legal advice obtained from the Attorney General's Office in October 2000 regulations made under the existing section 59 of the 1970 Act, fixing the threshold for the new scheme at €53.33, came into effect on 1 March 2001. Given that, as has been pointed out previously, claimants derived greater overall benefits under the new scheme, as reflected in the significant increase in spending, the issue of possible refunds was not addressed at that time.
The GMS Payments Board estimated that the maximum cost of claims for potential refunds for the period 1 July 1999 to 28 February 2001 is in the region of €18 million. This involved 175,000 households and covered approximately 4.75 million transactions relating to 11.86 million items. The administrative cost of processing these claims is estimated at €2 million.
Following a review by my Department of the position in relation to this issue, I have obtained the Government's authorisation to put in place a process for assessing applications for refunds from persons who may be owed money arising from the introduction of the DPS.
There are significant administrative issues to be resolved before a process can be put in place. My Department will address these issues in consultation with the relevant bodies. When an appropriate procedure is agreed applications will then be invited through public notice. Each application for refunds will be considered under the terms of the agreed procedure. The final cost and the numbers qualifying for reimbursement will not be known until all applications are received and processed.
It is my intention that this issue be dealt with as quickly as possible.
