Czech drug regs go ahead despite protests

25 July 2006

Czech Health Minister David Rath has approved new regulations, despite charges from both the drug industry and the political opposition that he has no authority to do so. The decree is aimed at saving some 70.0 million euros ($88.4 million) a year on medicines spending for the health funds. Shadow Health Minister Tomas Julinek said the regulation would restrict access to modern drugs and oblige patients to contribute more to their costs. Dr Rath said deals had been reached with several drugmakers to bring the prices of very expensive drugs down to acceptable levels. The regulation also reduces pharmacy margins to 10% on the most expensive drugs, while increasing it to 31% for the cheapest products.

The Czech Chamber of Pharmacists has welcomed the new margins but its president, Lubomir Chudoba, said patients' direct payments were likely to increase later on. Doctors' organizations have also said that the projected savings on the drugs bill will allow practitioners to prescribe more drugs within the limits set by the health funds.

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