The Government has accepted proposals in order to make the pharmaceutical budget sustainable, said Minister of State for Health Miklós Szócska, at a joint press conference with government spokesperson Anna Nagy.

Anna Nagy said that in the course of the pharmaceutical budget reforms the government laid down three principles: legislation is needed that will allow use of the system’s internal reserves; the restructuring must not increase costs for patients; and thirdly, an adequate service must be guaranteed in terms of both time and space.

Miklós Szócska began his press conference by saying that this year’s pharmaceutical budget is HUF 343 billion, and the retention of this total was known to industry players. To that end, the Government adopted a package of proposals and also instructed the office of the Minister of State to develop regulations for the coming years, he continued.

The 2011 action plan stabilises the situation in the short term, but also provides the basis for longer-term structural changes – stressed the Minister of State. Speaking of details, he said that in order to limit additional profits on pharmaceuticals, levies on companies will increase from 12 per cent to 20 per cent, and the fee paid after a medical sales representative meets a doctor shall be raised from HUF 5 million to HUF 10 million.

In order to achieve better prices, the National Health Insurance Fund (OEP) is renegotiating subsidy-volume contracts. In order to reduce the burden on consumers, the proposal highlights products with expired patents – so-called generics.

Mr. Szócska explained that the project would enhance competition in the pharmaceutical market: after the introduction of a preferred brand, manufacturers who offer a substantial discount may sell a bigger volume of their products in exchange, and thus they would become interested.

A review of heavily-subsidised drugs on the market is being launched, and subsidies will be tied to effectiveness in the real world, rather than to producer’s information. This measure does not add to costs for the public, but on the contrary protects consumers, as the best medicine for them will be chosen, said the Minister of State. Most of the measures take effect on 1 July this year, and the Office of the Minister of State calculates that the impact will be in the region of HUF 26 billion. The measures will not mean increased costs for the public, Mr. Szócska stressed.

On the measures not having any direct financial impact, the Minister of State said that in order to curb the influence of pharmaceutical companies, the highest fine for serious, repeated violations will be raised from HUF 25 Million to HUF 500 million. The practice of organising vacations in exotic locations under the guise of conferences will come to an end: all professional events must be reported beforehand, and the authority will check if these are justified on professional grounds. The list of medical sales representatives and of those suspended from medical practice will be available on the authority’s website.

Anna Nagy said that the Minister of Internal Affairs had not submitted a proposal on the service pensions of law enforcement employees at the cabinet meeting, because the trade unions had begun demonstrations instead of sending their proposals. According to Ministry of Internal Affairs figures, 28,267 people under the age of 57 who have retired from law enforcement receive an average monthly pension of HUF 180,000; in the group of those aged 57-62, 14,340 people receive an average of HUF 170,000. The number of retired front-line personnel (42,600) is comparable with the number of the active front-line personnel (42-43,000), the government spokesperson said.

The range of pharmaceuticals in Hungary can be classed in two categories: ‘unsubsidised’ medicines which do not receive public funding, the price of which is determined solely by the manufacturer; and medicines subsidised under the National Health Insurance Fund, for which the consumer pays part of the cost. This amount is equivalent to the difference between the price set by the manufacturer and the amount of public subsidy. Such products are available in all pharmacies for the same price. The source of subsidy is the Health Insurance Fund’s pharmaceutical budget, the annual total of which is fixed in advance in the Budget Act. Increasing costs paid by consumers is a rapid way of reducing pharmaceutical expenditure, but it comes with serious social consequences, and therefore the Government has established the principle that this will not happen: instead, the source of savings will be price reductions by manufacturers. The authorisation of medicines and examination of their efficacy is carried out by the National Institute of Pharmacy (OGYI). The Government has a responsibility to adhere to the budget plans.

(kormany.hu)