HSE to write to drugs firms on proposals to cut prices

The HSE is expected to begin a process of writing to pharmaceutical companies setting out proposed new lower prices that it will pay for individual drugs and medicines they supply.

The Cabinet gave approval earlier this week to the HSE to invoke powers set out in the Health (Pricing and Supply of Medical Goods) Act 2013 which allow it to it to change the reimbursement price it pays for drugs and medicines.

Minister for Health Simon Harris told the Cabinet that talks between Government officials and the pharmaceutical industry on a new price agreement had not been successful.

It is understood the letters to be sent by the HSE on Friday would inform pharmaceutical companies that the current process provides 28 days for them to respond and make representations before final decisions are taken regarding reimbursement prices.

The HSE is examinging prices on a drug-by-drug basis.

The HSE’s service plan for this year contianed provision for it to generate savings of about €110 million on its drug costs this year.

The Irish Pharmaceutical Healthcare Association said earlier this week that it had sought meetings with the relevant Ministers, in the Department of Health and Department of Public Expenditure and Reform "to discuss the realistic proposals for a new supply agreement we have made in good faith".

“An agreement with Government will be best for access for new medicines for patients, for economy in the supply of medicines and for the continuation of the productive relationship between Government and this international industry. Agreement delivers stability in all three areas.”