Vol. 433 No. 2
115 Mr. Callely asked the Minister for Health if he will give details of the new agreement reached between his Department and the Federation of Irish Chemical Industries on the price of prescribed drugs; the yearly savings over the next four years; and if he will make a statement on the matter.
The Government has approved a new four year Agreement between my Department and the Federation of Irish Chemical Industries on the price of drugs. The Agreement will come into effect on 1 August 1993.
The main elements of the Agreement include:
—a reduction of over 6 per cent in the cost of GMS drugs. This reduction is achieved through an immediate price decrease of 3 per cent on all drugs and an increase in the rebate payable on drugs supplied under the GMS Scheme from 2 per cent to 5 per cent;
—a price freeze for a period of four years. The price will be subject to review, however, if during this time there is an average movement in cumulative currency adjusted price indices across a basket of European countries in excess of 10 per cent.
In addition, the Industry has agreed to make a once-off ex-gratia payment of about £2m to compensate for currency fluctuations over the last year of the current Agreement.
The new Agreement sets the maximum price for all drugs prescribable and reimbursable in the GMS scheme and all medicines supplied to hospitals and health boards. It provides that a minimum discount of 15 per cent shall be obtainable on supplies to hospitals and explicity recognises the right of such bodies to negotiate better terms with individual manufacturers, importers or agents.
