Dáil Éireann Debate, Wednesday - 15 July 2015
225. Deputy Caoimhghín Ó Caoláin asked the Minister for Health if there are further potential savings he has identified in the State's medicine bill; and if he will make a statement on the matter. [29532/15]
View answerIn recent times, the Government has entered into a number of price reduction Agreements with both the Irish Pharmaceutical Healthcare Association (IPHA) and the Association of Pharmaceutical Manufacturers in Ireland (APMI), delivering a number of important benefits, including significant reductions for patients in the cost of drugs, a lowering of the drugs bill to the State, timely access for patients to new cutting-edge drugs for certain conditions, and reducing the cost base of the health system into the future. Cumulative savings and cost avoidance generated from these Agreements between 2006 and 2014 amount to approximately €1.5 billion.
The State's existing price reduction Agreement with the IPHA commenced in 2012, and will run until the end of October 2015. Savings of over €400m are to be delivered as part of this Agreement, with €210m of these savings to be reinvested into provision by the State of new and innovative drugs.
Consideration is now being given to a range of options available to the State in seeking to deliver further savings on the cost of drugs. Such options include entering into a new Agreement with IPHA, as well as the possibility of using the legislative powers afforded to the HSE under the Health (Pricing and Supply of Medical Goods) Act 2013 to review and alter prices.
Officials in the Department of Health are currently working with their colleagues in the HSE and the Department of Public Expenditure and Reform to ensure that the State achieves the best possible deal in terms of future price reductions on the cost of medicines. Given that any potential savings may be the subject of negotiations with industry, I do not wish to place the State's detailed position or estimated savings into the public domain in advance.
