Martin Brady
Ceist:1124 Mr. M. Brady asked the Minister for Health and Children his plans to tackle overpricing by pharmacies under the general medical scheme; and if alternative generic medicines can be sourced for use by hospitals. [16595/02]
Written Answers. - Medicinal Products.
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, and the Association of Pharmaceutical Manufacturers of Ireland, APMI, 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 an agreed 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.
The sourcing and purchase of drugs and medicines for use in hospitals is a matter for the individual hospital having regard to suitable available alternatives and the maximum prices as set out in the agreement between the Department and the pharmaceutical industry.