The drugs payment scheme, DPS, replaced the drug cost subsidisation scheme, DCSS, and drugs refund scheme, DRS, in 1999. It was initially introduced on an administrative basis, with the intention that regulations to underpin its operation would be introduced following amendment of the relevant section of the Health Act 1970. However, amendment of the Act was delayed and, 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. As has been pointed out previously, given that 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 the time.
The DPS makes important improvements over the previous schemes. It is more user-friendly and significantly improves the cash flow for families and individuals with ongoing expenditure on medicines. The scheme also removes the anomaly where, for example, a person or family spending over €100, £80, in one month and nothing for the rest of the quarter was not entitled to a refund. Under the DPS families can budget for the cost of prescribed medicines as, regardless of the cost, they are only liable for a maximum €70 in any month; they do not have to pay first and then claim a refund; and there are no qualifying criteria for the DPS, unlike the DCSS which required a doctor's certificate for a long-term medical condition and health board approval.
The financial benefits of the DPS are reflected in the significantly higher spending level relative to the earlier schemes. The total cost of the DRS and the DCSS was €94.84 million, £74.69 million in 1998 which was the last full year of operation. In contrast, the DPS cost €139.67 million, £110 million, in 2000, the first full year of operation; €177.76 million, £140 million, in 2001 and €192 million in 2002. The aggregate benefits of the new scheme are clearly significantly greater than the previous schemes. Following a review by my Department of the position in relation to this issue, it has been decided that a process should be put in place for assessing applications for refunds to people arising from the introduction of the DPS. Public notices will be placed in the national newspapers inviting applications for refunds as soon as the detailed arrangements are finalised.
The final cost and the numbers qualifying for reimbursement will not be known until all applications are received and processed.