Michael Creed
Ceist:146 Mr. Creed asked the Minister for Health and Children his Department's role in determining the price of prescribed medicine. [5070/02]
Written Answers. - Drug Costs.
The price of drugs and medicines ex-manufacture in Ireland has been subject to control since 1972 through formal multi-annual agreements with the Irish Pharmaceutical Healthcare Association, IPHA – formerly the Federation of Irish Chemical Industries, FICI – under which the maximum price to the wholesaler of any new item of medicine introduced to the market and covered by the agreement shall not, on the date of notification, exceed the currency adjusted UK wholesale price or the average of a basket of EU countries, whichever is the lower. A price freeze is also in place in regard to the prices charged for existing products. The current agreement has been extended to mid-2005.
Under the general medical services scheme, pharmacists are reimbursed the trade price of the drug plus a dispensing fee. In the case of private prescriptions reimbursed under the drug payment scheme, the State reimburses the ingredient cost of the medicine, the retail mark-up on the ingredient cost – normally 50% of the trade price – and a standard dispensing fee. My Department has no function in relation to the retail mark-up on private dispensing, which has been established by custom and practice over the years.