Written Answers. - Medicinal Products.
Mary Hanafin
Ceist:
117
Ms Hanafin
asked the
Minister for Health and Children
the plans, if any, he has to consider enacting measures to control the retail price of prescribed drugs and medicines; and if he will make a statement on the matter.
[23812/99]
The price of drugs and medicines (ex-manufacturer) in Ireland has been subject to control since 1972 through the mechanism of formal multi-annual agreements with the Irish Pharmaceutical Healthcare Association (IPHA) and the Irish Pharmaceutical Manufacturers Association. The purpose of these agreements with the industry is to ensure that the most modern medicine therapies are available to patients at reasonable prices.
The current agreement, which covers the period 1 August 1997 to 31 July 2002 provides that the price to the wholesaler of any new item of medicine introduced to the market and covered by the agreement shall not exceed the currency adjusted United Kingdom wholesale price or the average of a basket of EU countries, whichever is the lower. The agreement, and indeed the previous agreement for the period 1993-97, also provides for a price freeze on the wholesale cost of drugs and medicines to the Irish market. In effect, therefore, at the end of the current agreement, a price freeze will have been in place for ten years.
The position with regard to retail costs of general medical services prescriptions and private prescriptions is as follows. Arrangements are negotiated with the Irish Pharmaceutical Union for the supply of medicines to medical card holders under the general medical services scheme. Under the general medical services scheme, pharmacists are reimbursed the trade price, ingredient cost of the drugs, medicines and appliances dispensed by them plus the appropriate dispensing fee and VAT where applicable.
The cost of private prescriptions to patients covers the ingredient cost of the medicine, the retail mark-up on the ingredient cost, normally 50%, a standard fee and VAT where applicable. One exception is the high tech scheme where a capitation rate applies. My Department has no function in determining the retail mark-up on private dispensing of medicines, which has been established by custom and practice.
I am satisfied that, in general, the current IPHA agreement, which is the main control in place with regard to drug prices, is working well.
