Delay In Hungarian Drug Price increases

The planned drug price rises of 35%-40% in Hungary in early February (Marketletter January 22) will probably now happen by early March, reports MTI Econews. The delay follows ongoing government debate over drug subsidies and the effects of higher drug prices on sections of the population.

The delay will cost the health Insurance Fund 400 million forint ($2.7 million) a month, as it will reimburse part of the extra costs of inflation to drug producers and wholesalers. Drug price subsidies rose 18.8% in the first 10 months of 1995 against 23.3% in the same period of 1994.

Meantime, Hungary's Ministry of Industry and Trade has invited tenders for the supply of pharmaceuticals and medical equipment to Bosnia-Herzegovina, reports MTI Econews. The tenders stipulate that 30% of drugs and equipment must be supplied free and that only Hungarian companies may participate. the supplies will be delivered in the first quarter of 1996.