Economy
Hungary to up drug producers' contributions to meet deficit goal
Among the planned actions affecting drug makers we find revenue boosting and expenditure reducing measures that should bring the budget HUF 25.9 billion. Via their pass-through effects these measures can help Hungary reach its deficit target set in the package of structural reform measures, i.e. the Széll Kálmán Plan, the paper said.
The planned measures:
1. The tax drug markers pay on the sale of subsidised medicine is to be raised to 18% from 12%. This is expected to improve the balance of the Health Insurance Fund (OEP) by HUF 3.9 billion.
2. The medical representative fee is to be doubled (to HUF 10 m per person). Presently, a total of 2,619 medical representatives are in the registry, but this measure is likely to reduce their number, so investigations (by authorities) must be stepped up, the paper cited the document. The cabinet expects HUF 1 bn extra revenue from this measure (as the fee is payable only on the number of days worked).
3. The renegotiation of contracts for subsidy volumes (with worse terms for the producers) will also lead to higher contributions by the manufacturers. These contracts free the OEP from financing risks by obliging producers to pay for the patients’ drug therapy after a predetermined turnover.;
4. By revising the subsidy on cholesterol-lowering drugs (80% currently) the government hopes to save HUF 5 billion.
5. The revision of subsidies in further therapeutic areas should save the drugs budget HUF 2 billion.
6. Cutting the subsidy on combination drugs (effective as of 1 April) is expected to save HUF 4.1 bn annually.
7. International reference pricing to be introduced at generic products, with the aim to improve the balance by HUF 1 bn.
8. A result-based subsidy system is to be introduced, i.e. the producer would need to repay the state subsidy if therapy fails to deliver the promised results. This is expected to save HUF 1 bn a year.
Should the aforementioned measures fail to bring the desired results, the government reserves the right for regulatory price reductions.
Read more about the issue at the links below:
The planned measures:
1. The tax drug markers pay on the sale of subsidised medicine is to be raised to 18% from 12%. This is expected to improve the balance of the Health Insurance Fund (OEP) by HUF 3.9 billion.
2. The medical representative fee is to be doubled (to HUF 10 m per person). Presently, a total of 2,619 medical representatives are in the registry, but this measure is likely to reduce their number, so investigations (by authorities) must be stepped up, the paper cited the document. The cabinet expects HUF 1 bn extra revenue from this measure (as the fee is payable only on the number of days worked).
3. The renegotiation of contracts for subsidy volumes (with worse terms for the producers) will also lead to higher contributions by the manufacturers. These contracts free the OEP from financing risks by obliging producers to pay for the patients’ drug therapy after a predetermined turnover.;
4. By revising the subsidy on cholesterol-lowering drugs (80% currently) the government hopes to save HUF 5 billion.
5. The revision of subsidies in further therapeutic areas should save the drugs budget HUF 2 billion.
6. Cutting the subsidy on combination drugs (effective as of 1 April) is expected to save HUF 4.1 bn annually.
7. International reference pricing to be introduced at generic products, with the aim to improve the balance by HUF 1 bn.
8. A result-based subsidy system is to be introduced, i.e. the producer would need to repay the state subsidy if therapy fails to deliver the promised results. This is expected to save HUF 1 bn a year.
Should the aforementioned measures fail to bring the desired results, the government reserves the right for regulatory price reductions.
Read more about the issue at the links below:
