Government’s reference price reform to reduce medication cost by 40 percent - PM
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. Photo: Government Administration
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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.
Pharmaceutical companies, importers, distributors and retailers of medical drugs will be prohibited from selling medicines at prices exceeding the reference set by authorities starting February 15, the Georgian Government announced on Monday.
Georgian Health Minister Zurab Azarashvili on Friday said the reference prices set for medicines would come into effect on February 15 and all companies, importers, distributors or retailers would be required to establish a maximum upper limit accordingly.
Import of medications from the Turkish market has “significantly” decreased the prices of “dozens” of medical products in Georgia, Health Minister Zurab Azarashvili said on Saturday.
The costs of medical drugs are expected to decrease by 40 percent next year following the anticipated introduction of reference prices, the Georgian government administration announced on Wednesday.
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Patients in Georgia spending money on medication for chronic illnesses will have up to 90 percent of their expenses reimbursed in a state programme by 2026, Health Minister Zurab Azarashvili said on Monday.
The Georgian Government’s Interagency Commission has been authorised to set wholesale prices for select pharmaceutical products by Prime Minister Irakli Garibashvili, in the latest move designed to effect a reduction of domestic costs of medication.
The Georgian Health Ministry on Thursday said it would have a “strict response” to “artificially increased prices” on expensive oncological medicines, after the “significant” surge of prices by “some” pharmaceutical companies.
The number of medicines sold through the system of reference pricing across Georgia has been increased to 2,300, the Government Administration announced on Thursday. The list now included antihypertensive, anticoagulant, antihistaminic, antibiotic, gastrointestinal, analgesic and anti-inflammatory drugs.
The Georgian Health Ministry on Tuesday said large pharmacy companies “artificially” increasing prices on medicines not yet covered by reference price policy was “unacceptable”.
The Georgian National Competition Agency on Friday announced it had fined four pharmaceutical companies ₾53 million ($19 mln) for price-fixing on oncology medicines funded within the state programme.