A new system of reimbursing medical drug costs could save the Government millions of euro a year, it was claimed today.
The Association of Pharmaceutical Manufacturers of Ireland (APMI) said drug reimbursement schemes cost the Government more than €1 billion a year and making greater use of generic drugs would cut millions from that figure.
The money saved could be used to pay for more expensive medicines or even provide resources to tackle the A&E crisis, the APMI said.
The Government pays a higher price in reimbursements for a patented drug once its patent has expired than they do for identical copies, known as branded generics.
But ahead of the renegotiation of the reimbursement agreement this summer, the association has called for the Government to set a single "reference price" for the amount they reimburse, which falls midway between the different prices of the generic brands.
This would encourage doctors in community schemes, hospitals and health boards to use lower-cost medicines where they are available, APMI chairman Rory O'Riordan said.
"We strongly believe it is now time the Government secured better value for off-patent medicines in their reimbursement systems.
"At the moment there is little incentive to any of the players involved in the supply of medicines, from the doctor to the pharmacist, to use lower-cost medicines when available, thus costing the Government, and us, the taxpayers, millions in extra cost drugs."
He gave the example of Statin drugs, which are used to treat cholesterol and for which the Government pays a reimbursement fee for ex-patented drug Lipostat that is 20 per cent higher than the price paid for the generic brands.
He calculated €8.3 million could be saved each year for this drug alone.