Dáil Éireann Debate, Thursday - 27 September 2012
202. Deputy Bernard J. Durkan asked the Minister for Health the extent to which the GMS drugs bill has been or can be reduced; and to what extent by whatever means; the proposed schedule for any such event; and if he will make a statement on the matter. [41174/12]
Amharc ar fhreagraPublic expenditure on drugs provided to patients under the GMS and other community drugs schemes has increased significantly over the past decade in Ireland, with the year on year increase in spending on medicines being amongst the highest in Europe. In 1998 we spent just under €400 million. By 2009 expenditure had increased to just over €2 billion. However, due to action taken by my Department and the HSE, expenditure reduced in 2010 and 2011 with expenditure of approximately €1.9 billion in 2011. Cost control measures introduced in 2006 generated savings in the region of €250 million. Additional new price cuts between 2010 and 2012 resulted in a further €250 million (approximately) in savings .
Negotiations are ongoing between officials of my Department/HSE and the two bodies that represent pharmaceutical manufacturers in Ireland regarding reductions in the price of medical products supplied under State Schemes. It is expected that these negotiations will conclude shortly and provide additional savings in the cost of medicines. In addition, the Health (Pricing and Supply of Medical Goods) Bill 2012 will introduce a system of reference pricing and generic substitution for prescribed drugs and medicines. These reforms will promote price competition among suppliers and ensure that lower prices are paid for medicines resulting in savings for taxpayers and patients. The Bill is a Government priority for this Oireachtas session. It completed its passage through the Seanad on Wednesday, 19 September, and will be discussed in the Dáil shortly.
