€65m will not be saved 'automatically' on drug usage

THE GOVERNMENT’S target of achieving savings of €65 million through greater economies in drug usage can be obtained but will not happen automatically and investment will be needed, a review group set up by Minister for Health Mary Harney has found.

The group, chaired by Dr Michael Barry of the National Centre for Pharmacoeconomics at St James’s Hospital, has recommended that the Government should assess paying for some drugs where available evidence queries the value for money they provide, examining the price it pays for generic medications and encouraging greater generic prescribing by doctors.

The report also says the Health Service Executive (HSE) should continue with its consideration of the margins received by pharmaceutical wholesalers and the payments made to pharmacists.

The group was established by Ms Harney following the controversy surrounding the Government’s decision in the Budget to end automatic entitlement to a medical card for everyone over 70.

Cabinet subsequently revised the initial thresholds for eligibility in the wake of widespread protests to allow the majority of those over 70 to keep their medical cards.

However, the Government sought to make savings of €65 million in drug usage to maintain its original budgetary framework.

The report says while some of its recommendations could produce immediate savings, others would be achieved over time.

“Due to the very short timeframe – less than six weeks – this review cannot be all encompassing. However, we believe that the target of €65 million in savings is achievable. Such savings will not occur automatically and investment will be required.”

A spokesman for the Minister said an implementation group would be established involving relevant stakeholders.

It was unclear how much of the €65 million savings would be realised this year.

The report says the reimbursement status of items such as clinical nutritional products, glucosamine and other therapies under the Drug Payment Scheme should be considered. It says this has the potential for saving in excess of €10 million per annum.

The report states clinical nutritional products are indicated for disease states, allergic conditions, malnutrition and metabolic and absorption problems. Updated and systematic review of the clinical and cost-effectiveness of these products should be undertaken.

“Consideration should be given to reimbursing these agents on a short-term basis only. In situations where genuine clinical need is determined, the product should continue to be reimbursed.”