Government’s reference price reform to reduce medication cost by 40 percent - PM

Georgian Prime Minister Irakli Garibashvili on Monday said the reference price mechanism, set to be introduced in a Government initiative across Georgia next month, would reduce the cost of medical drugs by an average of 40 percent. 

Starting February 15, pharmaceutical companies will no longer be able to sell drugs at a higher price than the specified [reference]. As a result of the reform, the cost of medicines will decrease by 40 percent on average”, the Government head announced.

The PM highlighted domestic customers were already saving about ₾200 million ($75.19mln) following last year’s start of imports of Turkish-produced drugs - a Government initiative launched to effect a reduction in high domestic costs on medicines.

Following the change, the price of medicines in the country decreased by 60-80 percent”, the PM said, adding the introduction of reference prices would further decrease the prices.

Garibashvili noted while the reference system was being introduced for select categories of drugs designated for chronic and oncological illnesses in the first phase - with over 1,300 products involved - it would be gradually expanded to cover other medicines.