Minister of Health: “We cannot back down from our promise to reduce the price of prescription drugs by 15-20% in the fall

We cannot deviate from the promise to reduce the price of prescription drugs by 15-20% in the fall, Health Minister Hosam Abu Meri (JV) told LETA.

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Continuing the started work on promoting the availability of medicines for Latvian citizens, the ministry is currently continuing negotiations with the pharmaceutical industry, which is not going easily due to different opinions. The Minister stated that the Ministry of Interior is trying to be objective, trying to find a compromise so that the planned changes do not affect the availability of pharmacies.

“We are talking about 168 small pharmacies located in small villages and outside Riga. We are trying to figure out how to make this group of pharmacies independent of wholesalers. In rural areas, these pharmacies also fulfill a social function, and it is the first place where people go to ask a pharmacist for help,” said Abu Meri.

He pointed out that the drug price reduction model is being developed to try to protect these pharmacies. At the same time, the minister wants not to worsen the existence of supermarkets, because it is important that patients receive their medicines on time. When asked about the changes to be made in the model, he stated that certain percentages have been adjusted, but as originally planned, the model will basically focus on the prices of medicines that exceed the value of six euros.

Abu Meri hopes that the new pricing models will be adopted by the Cabinet of Ministers by July 1, so that the personal expenses of the population for prescription drugs will decrease by about 15-20% already in the autumn

LETA already wrote that the Ministry of Health’s new drug price reduction model was prepared by analyzing the pharmaceutical regulation of Lithuania, Estonia and Finland. It envisages abandoning the existing system, in which the permissible percentage mark-up for wholesalers and pharmacies depends on the price set by the drug manufacturer, instead introducing one fixed mark-up for all reimbursable drugs and prescription drugs per package, regardless of price, as well as the fee for the pharmaceutical care service.

The Ministry of Interior explains that the proposed changes are aimed at achieving results in a short period of time and reducing personal expenses for prescription drugs for citizens by about 15-20%. This is expected to be achieved by reviewing the amount of allowable drug refills, as well as by increasing the amount of compensation determined by the state for compensable drugs. Also, work is being done on the inclusion of new medications and diagnoses in the list of compensable medications, thereby increasing the availability of medications to those residents for whom medications for effective treatment or ensuring quality of life were not previously compensated.

The proposal of the Ministry of Interior envisages setting a fixed applicable surcharge for wholesalers and pharmacies for medication packaging, as well as setting a fee for pharmacies for pharmacist consultation in the case of dispensing prescription medications, which would be partially paid for by the state. It is expected that small pharmacies would be paid more for pharmacist consultation, thus supporting their operation. In the Ministry’s view, such an arrangement will not only reduce personal expenses for medicines for citizens, but also pharmacists will be able to recommend medicines, based only on their professional knowledge, and not by issuing the most commercially advantageous medicines to the pharmacy.

The Ministry of Health expects that as a result of such changes, patients’ compliance with the use of medication will improve, which will improve both disease control and also reduce exacerbations of chronic diseases and hospitalizations for chronic patients.

The proposals developed by the Ministry of Health envisage strengthening the role of pharmacists in health care, as pharmacies become more financially independent from wholesalers. In the Ministry’s proposal, special financial support is also provided for pharmacies in the regions, which are the only pharmacies in the neighborhood and also fulfill a social function.

From the Ministry’s point of view, the new model provides for simple and equal principles of medicine price formation and includes the joint responsibility of the state, merchants and patients in promoting the availability of medicines.

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