In autumn 2024 the price of the most expensive medicines in Latvia could go down by 15-20%, as LETA was told by the Ministry of Health.
Continuing efforts to improve availability of medicines for Latvian residents, the ministry has developed proposals for a new medicines pricing model. The new model was developed based on the pharmaceutical sector regulations in Lithuania, Estonia and Finland. This means letting go of the existing system, in which the allowed percentage of wholesale and pharmacy fees depends on the price set by the manufacturer of the medicine, instead introducing a single fixed mark-up for all reimbursable medicines and prescription medicines on packaging, regardless of the price, as well as a fee for the pharmaceutical care service, the ministry explains.
It is planned that the pharmaceutical care service fee will be covered by the patient and the state, but the patient fee could be up to 75 cents. A similar amount, but 71 cents, is already being charged as a co-payment for a prescription for reimbursable medicines.
Minister of Health Hosams Abu Meri stressed that a single type of medicine, regardless of diagnosis or whether or not it is compensated or prescribed, should have an equal and fair price if the patient purchases it in a pharmacy.
Nevertheless, he admits the biggest changes will affect prescribed medicines that cost EUR 5 or more, because they are the reason why Latvian residents often travel to Lithuania and Estonia.
“Now no one goes to Estonia and Lithuania for prescribed medicines that cost EUR 1. If you have prescribed medicines worth EUR 80 or EUR 100 to buy every month, a 15% to 20% price drop is very significant,” said the minister.
The ministry explains that the proposed changes are intended to achieve results in a short period of time and make sure residents’ personal expenses for prescribed medicines go down by 15-20%. This is to be achieved by increasing the amount of state compensation for reimbursable medicines. Work is also underway to include new medicines and diagnoses in the list of reimbursable medicines, thus increasing the availability of medicines for those residents for whom medicines for effective treatment or quality of life were not previously reimbursed.
Director of the Pharmaceutical Department of the Ministry of Health Inese Kaupere said that in Latvia, there are 44% more pharmacies per population when compared to OECD countries. According to her, the ministry’s developed model will improve the situation with pharmacies. She says it will also ensure the continued operations of individual pharmacies, of which there are 168 in Latvia.
According to Kaupere, when it comes to determining mark-up applied by wholesalers, the ministry used recommendations from the World Bank.
If wholesalers try manipulating prices of prescribed medicines, the state will likely have to create its own wholesaler. Abu Meri said this idea is under consideration, and that it was also discussed on a political level.
The ministry expects these changes will help improve patient adherence to medication guidelines, which will improve both disease control and reduce exacerbation of chronic diseases and hospitalisations for chronic patients.
The proposals developed by the VM also envisage strengthening the role of pharmacists in healthcare, with pharmacies becoming more financially independent from wholesalers. In the offer of the ministry, special financial support is also provided for pharmacies in regions that are in the vicinity of the only pharmacy and also perform a social function.
According to the ministry, the new model provides simple and equal pricing principles, as well as includes solidarity between the state, merchants and patients in promoting the availability of medicines.
Abu Meri adds that this new pricing model does not provide regulation of non-prescribed medicines and dietary supplements.
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