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

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.

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.