Dáil Éireann Debate, Tuesday - 22 October 2013
588. Deputy Mary Lou McDonald asked the Minister for Health if he will provide the full-year effect of all expenditure reductions for his Department as set out in the expenditure report 2014, as provided for in the expenditure report 2013. [44748/13]
View answerThe gross current budget for the Health Sector for 2014 is €13,263m, a reduction of €361m on the 2013 allocation of €13,624m. A total of €666m in health savings measures have been identified in the context of the Health Estimates to meet the overall health expenditure ceiling reduction of €361m, commitments under the Programme for Government of €57m and health service pressures of €248m. Some of the savings measures represent the full year effect of initiatives taken in 2013, while others are new savings targets for 2014.
In terms of the projected full-year effects, the table below provides details regarding ten of the fifteen measures concerned. Full-year savings from the remaining five measures are more difficult to quantify at this stage for reasons of timing and the nature of the savings involved. Further detail in relation to these measures is set out below. It should be noted that a number of the measures I have taken here are new initiatives, and for this reason I believe that we should take account of the learning from them as we implement change and reform our health system.
At my request, the Government has decided that the Secretaries General of the Departments of Health, Public Expenditure and Reform and the Taoiseach will engage in an intensive exercise to ensure verification and implementation of the proposed savings in the Health Vote.
Medical Card Probity and Pay related savings to be achieved under the Haddington Road Agreement.
Extremely ambitious savings targets have been set in relation to medical card probity and for pay savings to be achieved under the Haddington Road Agreement. These savings targets will be the subject of the verification and implementation exercise mentioned above.
Generic Substitution and Reference Pricing
Generic substitution and reference pricing is being introduced on a phased basis. It is not possible, at this juncture, to provide accurate figures regarding the potential savings after 2014, as these depend on various factors including prevailing prices, number of competitors, availability of substitute products, and market dynamics.
Instead of retention of full medical card on return to work, give GP Visit Card
It is not possible, at this juncture, to provide accurate figures regarding the potential savings from this measure after 2014, as it will require primary legislation and a detailed costing exercise as to its implications.
Nurse Bank
The full-year saving achievable will be determined in the light of experience with implementation of the Nurse Bank in 2014.
|
Measure |
Savings in 2014 €million |
Estimated Full Year Effect €million |
|
Generic Substitution and Reference Pricing |
50 |
(see note above) |
|
IPHA/APMI Agreement |
28 |
150 |
|
Full year impact of FEMPI fee reductions |
37 |
2014 saving is carry over from 2013 fee reductions |
|
Full year impact of increase in prescription charges |
4 |
2014 saving is carry over from Budget 2013 increase |
|
Full year effect of income thresholds and probity |
20 |
2014 saving is carry over from Budget 2013 measure |
|
Reduce Income Thresholds for the over 70s Medical Card (€900 p.w. couple and €500 p.w. single) |
25 |
49 |
|
Additional Delisting of Drugs from the GMS reimbursable drugs |
10 |
Full year effect applies in 2014 |
|
Increase Prescription Charges to €2.50 per item with €25 cap |
43 |
Full year effect applies in 2014 |
|
Medical Card Probity |
113 |
(see note above) |
|
Instead of retention of full medical card on return to work give GP Visit Card |
11 |
(see note above) |
|
Charge all Private Patients in Public Hospitals |
30 |
45 |
|
Fair Deal – Full year effect of enactment of the Health Amendment Act 2013 adjusting asset contribution |
10 |
2014 saving is carry over from 2013 measure |
|
Increase in Charge for Licensing of Tobacco Retailers |
5 |
5 |
|
Nurse Bank |
12 |
(see note above) |
|
Pay Related Savings |
268 |
(see note above) |
