Medical card holders will have to pay 50 cent for each item they are prescribed by a doctor under changes announced in today's Budget. The prescription charge is being introduced to reduce the State's medicines bill, Minister for Finance Brian Lenihan said.
In a statement this evening, the Department of Health said it is expected the new charge will come into effect from April 1st next year after legislation required to give effect to the measure is introduced.
It also said the 50 cent charge per prescription item is being introduced, subject to a monthly ceiling of €10 per family.
The prescription charges are expected to raise €15m in 2010 and €25m in a full year.
Meanwhile, there is to be no increase in the charge for attending A&E or in the statutory charges for day, inpatient and long stay services, and the charges for private beds in public hospitals are not being increased.
Minister for Health Mary Harney said she was conscious any increase in these charges next year would impact on insurance premium levels at a time when families are under financial pressure. "Taking account of the importance of controlling inflation, where this is possible, and stability in the health insurance market, it has been decided, on an exceptional basis, not to increase private and semi-private charges in 2010," she said.
But the monthly threshold for the Drugs Payment Scheme is being increased from €100 to €120 from January 1st, 2010.
There are also changes to the health insurance levy coming later in the Finance Bill.
Mr Lenihan said €400 million of savings would arise in the health area. The Department of Health explained that this would be made up of €283 million in cost reductions for drugs and dental treatment as well as economies generated by the HSE and Department of Health, €75 million from collection of outstanding income and €42 million from increased charges.
It also said cuts to the pay of health sector workers including hospital consultants as well as "a proposed further reduction in the fees payable to certain health professionals", and savings associated with the moratorium on recruitment will generate €659m in savings for the health sector.
Ms Harney said an extra €230million will be provided next year for demand led schemes such as additional medical cards; there will also be an additional €97 million for the Fair Deal scheme; an additional €10 million for home care packages; and an additional €20 million for the cancer control programme which will include money to initiate work on the roll out of a national bowel cancer screening programme.
The capital budget for health next year will be €484m which is a €37m reduction on the 2009 provision.
Meanwhile Mr Lenihan said he was providing for a multi-annual investment programme in important mental health projects in line with those set out in the blueprint for improving mental health services, "A Vision for Change".
"This investment programme will be funded from the sale of surplus HSE assets and I am allocating an additional amount of €43 million for this purpose in 2010. Further funding for mental health will be provided as asset sales allow," he said.
Separately he said there would be no increase in the cost of cigarettes but he has reduced the excise on alcohol as a result of the surge in cross-Border shopping.
There will be a 12 cent reduction in excise duty on each pint of beer or cider, a 14 cent reduction per half glass of spirits and a 60 cent reduction per standard bottle of wine.
Already there has been criticism of the Government's decision not to increase the cost of cigarettes by ASH Ireland and the Irish Heart Foundation.