HSE warns medicines to rise 9% in scheme change

THE Health Service Executive has warned that medicine prices will rise by around 9% when it restores a controversial drugs payment scheme next month.

The HSE announced yesterday that it was reinstating the full rate paid to pharmacists from November 1 for medicines supplied through the community drugs scheme.

Last month, the High Court found the health authority breached its contract with pharmacists when it reduced the margin it pays to pharmacists for wholesale services from 17.6% to 8%.

The HSE claimed the cut would reduce its medicine bill by €100 million a year and allow for cheaper drug prices for patients.

The HSE had been paying pharmacists the “ex-factory” or wholesale price plus 17.66% for medicines, and had planned to reduce this mark-up to 7% by year end.

The health authority said yesterday it was now restoring the full rate to comply with the court’s ruling.

The move will also increase the cost of the various medical card schemes.

Pharmacists says they are owed up to €40m — money they did not receive as a result of changes made in the pricing scheme.

The Irish Pharmaceutical Union (IPU), which represents 1,800 chemists, had said the HSE’s plan had not been negotiated and would force some pharmacies to close.

The court said prices paid to pharmacies under the existing contract could be changed following appropriate consultation with pharmacy representatives.

The IPU welcomed the decision by the HSE to reinstate agreed payment arrangements with pharmacists but took issue with claims it would lead to increased costs for patients.

IPU president Liz Hoctor said the initial move by the HSE last March did not reduce medicine costs for patients and its reversal would not increase them.

“It is a pity that even as they climb down from this mistaken initiative, they continue to mislead patients,” she said.

Ms Hoctor called on the HSE to engage in talks with to agree a way forward

Once the HSE repaid pharmacists what was outstanding to them, the IPU would be keen to engage in discussions on how savings could be made as part of talks on a new pharmacy contract, she said.