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Proposed Model for Reference Pricing and Generic Substitution

Proposed Model for Reference Pricing and Generic Substitution

 

Demographic changes over the next decade will have a significant impact on the demand for and the delivery of health care in Ireland. Pharmaceutical expenditure accounts for a large proportion of overall health care expenditure. In 2008 the Health Service Executive paid for approximately 65 million prescription items at a cost of over €1.9 billion. As a result of demographic changes and prescribing trends, the number of prescription items is estimated to increase to 105 million by 2021 at cost of €2.4 billion. The current system is unsustainable. To ensure that patients can continue to access innovative and affordable medicines, new pricing and reimbursement approaches are required, along with changes in prescribing practices.

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