State’s drug bill up by €60 million in 2013

Increases explained by more people on medical cards, says group

Minister for Health Dr James Reilly. Photograph: Eric Luke
Minister for Health Dr James Reilly. Photograph: Eric Luke

The State’s drug bill grew by €60 million last year, despite Government claims of major cost savings arising from agreements with the pharmaceutical industry.

The cost to the HSE of medicines supplied under the medical-card schemes was €1.61 billion, compared to €1.55 billion in 2012 and €1.46 billion in 2011.

In 2012, two agreements were signed with the makers of branded and generic drugs. Minister for Health James Reilly said this would save more than €400 million over three years. Savings last year were estimated at €120 million, with an additional €28 million in savings forecast in 2014.

Last November, the HSE began paying less for generic drugs under a new reference pricing system. The State just covers the cost of the cheapest of a group of similar drugs. It is expected to yield more significant savings.

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The HSE's drugs bill for this year is expected to fall, but only by €50 million, to €1.56 billion, Minister of State at the Department, Alex White, told the Dáil.

Despite this generally upward trend in spending, pharmaceutical companies are unhappy at the reference pricing level for common drugs.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.