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Health Services, Cost of Medicines

Dáil Éireann Debate, Tuesday - 14 May 2013

Tuesday, 14 May 2013

Questions (697, 698)

Bernard Durkan

Question:

697. Deputy Bernard J. Durkan asked the Minister for Health the extent to which drug costs have fluctuated in each of the past five years to date; the way this has affected the budgetary situation; and if he will make a statement on the matter. [23013/13]

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Bernard Durkan

Question:

698. Deputy Bernard J. Durkan asked the Minister for Health the extent to which a rise in costs of any particular or specific drugs has been identified over the past five years to date; and if he will make a statement on the matter. [23014/13]

View answer

Written answers

I propose to take Questions Nos. 697 and 698 together.

The costs of drugs and medicines for the last 5 years are set out in the table below (corresponding figures for 2012 are not yet available).

-

2011

(000s)

2010

(000s)

2009

(000s)

2008

(000s)

2007

(000s)

Cost of Drugs and Medicines

€1,467,575

€1,533,619

€1,659,931

€1,595,089

€1,480,201

There has been a general price freeze in operation in Ireland for medicines since the mid 1990's. Price increases have only been allowed under the national pricing agreements in exceptional circumstances. Of the existing medicines reimbursed, in excess of 4,000 products have been impacted by price reductions since 2006.

Approximately 60 products have been granted price increases since 2006. Included in this are essential medicines such as epilepsy medicines and cortico-steroids. Price increases are only allowed in extremis to maintain supplies of required medicines in the Irish market and require the provision of detailed supporting evidence including international pricing. A number of the price increases were accompanied by pro-rata reductions in other products within a company’s portfolio (as per the national pricing agreements).

Price increases are not a significant contributor to reimbursement costs. Between 2009 and 2013 price reductions of the order of 30% per item reimbursed have been achieved. The average cost per item on the GMS Scheme has reduced from a peak of €18.97 in 2009 to €13.43 in January/February 2013, a 29% reduction in cost per item. The average cost per item reimbursed is now running at 2001/2002 levels.

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