Dáil Éireann Debate, Tuesday - 18 February 2014
702. Deputy Michael McCarthy asked the Minister for Health the specific reasons for the variation in medication costs between Ireland and neighbouring European countries; his views on the discrepancy in the price of a product (details supplied); the way he intends to address this matter; and if he will make a statement on the matter. [7697/14]
View answerThe prices of drugs vary between countries for a number of reasons, including different prices set by manufacturers, different wholesale and pharmacy mark-ups, different dispensing fees and different rates of VAT. The size of the market can also be a factor in the prices set by manufacturers.
My Department and the HSE have implemented a medicines pricing policy which aims to reduce the prices for medicines/improve value for money whilst also maintaining continuity of supply and availability of essential medicines. These aims are balanced in an attempt to maximise public health gain from available resources. As part of the pricing policies there has been a price freeze (i.e. no price increases allowed except in exceptional circumstances) for a number of years.
Over the last few years thousands of price reductions on medicines have occurred. For example, the price of over 500 different presentations of various medicines reduced by between 5% and 29% on the 1st November 2013 as a consequence of agreements reached with the Irish Pharmaceutical Healthcare Association (IPHA) and the Association of Pharmaceutical Manufacturers of Ireland (APMI). In overall terms, price reductions of the order of 30% per item reimbursed have been achieved between 2009 and 2013; the average cost per item reimbursed is now running at 2001/2002 levels.
Occasionally, price increases are required to maintain supplies of specific essential medicines. However, the HSE each year refuses a significant number of requests for price increases. Less than 50 price increases were allowed in the 8 years between 2006 and 2013.
In October 2012, Aspen Pharma Trading Ltd informed the HSE that, following an examination of the viability of a number of product lines, it had decided to increase the price of Purinethol in Ireland and a number of other EU countries (including Germany, UK, Denmark and Finland).
The HSE engaged with the company in an attempt to negotiate a lower price, however, it was unwilling to do so. The HSE was faced with the choice of allowing increased pricing (in line with other international markets) or running the risk that the product would be withdrawn. Having regard to the importance of the product and the fact that Aspen Pharma Trading Ltd is the sole supplier to the Irish market, the HSE considered that a price increase was necessary to maintain supply and agreed to grant a price increase from 1 March 2013. Despite the price increase, no other supplier has chosen to enter the Irish market. Reversal of the price increase in the absence of an alternative supplier could result in the sole supplier exiting the market and patients being left without access to this medicine.
In relation to price variations in Irish pharmacies, I would encourage patients to engage with their pharmacists to ensure they are getting best value for money when purchasing medicines. In this context, my Department has asked the Pharmaceutical Society of Ireland to consider how to provide for greater price transparency in pharmacies.
