The Impact of the Health Act (Pricing and Supply of Medical Goods) (2013) on the Pricing of Medicines in Ireland

OBJECTIVES: The Health (Pricing and Supply of Medical Goods) Act (2013) was introduced to promote the use of generic medicines and reduce the cost of medicines in Ireland. The Health Act (2013) introduced a new reference pricing system, generic substitution, price reductions upon generic entry, and cost savings for the healthcare system. The objective of this study is to describe the impact of the Health Act (2013) and to identify where the greatest savings have been made.

METHODS: The effect of new generic medicine pricing policies, since the introduction of the Health Act (2013), was analysed for the top 100 most expensive General Medical Services (GMS) medicines in 2013 (before the Act). The average ingredient costs were also identified from the Health Service Executive (HSE) website, and an analysis was conducted for the top 100 most prescribed medicines over the previous ten years (since the introduction of the Act).

RESULTS: The Health Act (2013) has significantly impacted the pricing of medicines, as 45% of the 100 most expensive General Medical Services (GMS) medicines in 2013 are now subject to generic reference pricing and/or price reductions following generic entry. The average ingredient cost of the top 100 most prescribed medicines decreased from €18.50 in 2013 to €7.90 in 2023. The price of medicines that the Department of Health (DoH)/HSE prioritised has decreased substantially over 2013-2023 period, with price reductions ranging from 48% for Ramipril to 88% for Perindopril. This was a result of reference pricing.

CONCLUSIONS: The Health Act (2013) has played a crucial role in reducing the cost of medicines and promoting the use of generic medicines in Ireland, leading to increased affordability and accessibility while contributing to cost containment within the healthcare system.