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Generic Medicines

Dáil Éireann Debate, Thursday - 21 July 2011

Thursday, 21 July 2011

Ceisteanna (657, 658, 659, 660, 661, 662, 663, 664)

Mary Lou McDonald

Ceist:

663 Deputy Mary Lou McDonald asked the Minister for Health the cost to the State for all medicine purchased within the public health system. [22207/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

664 Deputy Mary Lou McDonald asked the Minister for Health the cost to the State of the pharmaceuticals purchased through the general medical scheme, community drug scheme, high-tech scheme and hospital medicines in tabular form; a list of other schemes under which the State incurs the cost of pharmaceuticals in tabular form; the cost to the State of each of the latter schemes, citing the pharmaceutical cost, in tabular form. [22208/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

665 Deputy Mary Lou McDonald asked the Minister for Health the moneys spent on pharmaceuticals by the State; the percentage of these drugs that are generic; and the savings to the State achieved by purchasing generics. [22209/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

666 Deputy Mary Lou McDonald asked the Minister for Health the saving to the State if all hospital medicines purchased were generic, if this option was available. [22210/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

667 Deputy Mary Lou McDonald asked the Minister for Health the savings to the State if all general medicines purchased were generic, if this option was available. [22211/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

668 Deputy Mary Lou McDonald asked the Minister for Health the savings to the State if all high-tech scheme medicines purchased were generic, if this option was available. [22212/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

669 Deputy Mary Lou McDonald asked the Minister for Health the savings to the State if all medicines purchased for the public health system were generic, if this option was available. [22213/11]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

709 Deputy Mary Lou McDonald asked the Minister for Health the saving to the State if all community drug scheme medicines purchased were generic, where a generic option is available. [22638/11]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 663 to 669, inclusive, and 709 together.

Expenditure by the HSE on prescribed medicines and other prescribed items amounted to over €2,263 million in 2009. This included payments to pharmacists and wholesalers under the following schemes:

Schemes

€m

General Medical Services Scheme

1,260.24

High Tech Scheme

331.3

Drug Payment Scheme

263.47

Long Term Illness Scheme

139.76

Methadone Treatment

10.56

European Economic Area Scheme

1.96

Health (Amendment) Act 1996

1.8

Dental Treatment Scheme

0.79

The balance of €254 million relates to hospital drugs and medicines supplied under ‘hardship' arrangements. It was previously estimated that savings of approximately €23 million per year could be made if there was full generic substitution of medicines supplied under the GMS and other community drugs schemes. This figure was based on 2008 prices, 2008 ingredient costs and the availability of generics at that time. Since then the reimbursement prices of all medicines have reduced thus reducing the potential savings from increased usage of generic medicines. Discussions are currently ongoing with generic manufacturers with regard to further reductions in the prices of generic medicines. The breakdown of expenditure on generic and non-generic medicines in hospital settings is not available. Expenditure on medicines in a hospital is managed as part of the overall hospital budget.

In 2009 16.4% of medicines supplied by the HSE under the GMS and other community drugs schemes were generics. There is significant scope to increase the usage of generic medicines in Ireland. The corresponding figures for the UK, the Netherlands, Denmark and Austria are 67%, 57%, 45.5% and 40.2% respectively.

The Department is finalising the Heads of the Pricing and Supply of Medicines Bill. This legislation will introduce a system of reference pricing and generic substitution for prescribed drugs and medicines. A number of high volume medicines are expected to come off patent in the coming years and this legislation will increase the scope for savings through the greater use of generic medicines. It is expected that the legislation will promote price competition among suppliers and ensure that lower prices are paid for these medicines resulting in significant savings for taxpayers and patients.

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