Pat Cox
Ceist:19 Mr. Cox asked the Minister for Health the estimated amount he will recoup from the pharmaceutical industry in 1993 on foot of the clawback from the GMS drugs bill provided for under the terms of the FICI agreement.
Written Answers. - Cost of Medicines.
The present FICI Agreement provides that if the cumulative cost of medicines in the GMS scheme from 1 August 1990 to 31 July 1993 computed at Irish Wholesale Price, exceeds the cumulative cost computed at currency adjusted, UK Wholesale Price, the cumulative excess will be repaid by manufacturers/importers, in accordance with arrangements to be agreed between the Federation and the Department of Health.
Payment of a clawback, accordingly, arises if the cumulative cost of drugs purchased over the entire period of the agreement at Irish prices is greater than the cost of the same drugs calculated at currency adjusted UK prices.
My Department, in co-operation with the GMS (Payments Board), has been monitoring the cumulative cost of medicines in the GMS scheme since the introduction of the Agreement. Although the final position will not be known until after the end of the Agreement on 31 July 1993, it is estimated that based on a continuation of the current position to the end of July 1993 overall average Irish Prices were in line with currency adjusted UK Prices for the past three years and that the payment due from the Industry will be minimal.