Reference price system for medicines will reduce cost by 40% - PM
The average cost of about 800 medicines for chronic and oncological diseases will be reduced by 40 percent with the introduction of the reference pricing system starting today, Georgian Prime Minister Irakli Garibashvili announced on Wednesday. Photo: PM's press office
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The average cost of about 800 medicines for chronic and oncological diseases will be reduced by 40 percent with the introduction of the reference pricing system starting today, Georgian Prime Minister Irakli Garibashvili announced on Wednesday.
Pharmaceutical companies, importers, distributors and retailers of medical drugs are now prohibited from selling medicines at prices exceeding the reference set by authorities.
Health Minister Zurab Azarashvili on Wednesday said the introduction of the system marked the first phase of the reform, with reference prices to be gradually widened to include other groups.
Azarashvili also said the introduction of the reference price mechanism was aimed at providing citizens with both “most affordable” and “high-quality” healthcare and drugs.
The pharmaceutical sector had been given the deadline of January 31 to revise prices, with violations of the reference mechanism set to involve “various types of sanctions”, the Minister added.
Plans for expanding the list of medicines under the reference price system, ensuring full functioning of a drug quality laboratory and approving a nursing development strategy were among healthcare system plans for 2023 discussed on Wednesday between Georgian Prime Minister Irakli Garibashvili and Health Minister Zurab Azarashvili.
The upcoming introduction of the reference prices system on medical drugs across Georgia is expected to reduce average costs for products by 35 to 40 percent, Irakli Margvelashvili, the Chair of the Association of Pharmaceutical Companies Representatives, told local media on Tuesday.
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.
Mamuka Mdinaradze, the head of the ruling Georgian Dream party in the Parliament, on Monday pledged support for the Government's forthcoming bill for regulating high prices on various products in the country.
The Georgian National Competition Agency on Monday said it had started inspecting four companies in the Georgian pharmaceutical market following “sharp increase” by them in prices of medicines for chronic and oncological illnesses.
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.
Hans Kluge, the World Health Organisation’s Regional Director for Europe, has called reforms in Georgia for increasing accessibility to medicines “one of the best examples”, the Georgian Health Ministry said on Wednesday.
Health Minister Zurab Azarashvili on Thursday said reference prices on medical drugs would be applied to additional 2,000 medicines in Georgia, starting next year.