Dutch Industry Views 1996 Health Cost-Cutting Moves

For the research-based drug industry in the Netherlands, 1996 wasdominated by government moves to cut drug costs, says the annual report of the industry association, Nefarma.

On June 1, 1996, the Medicines Price Control Act took effect, introducing maximum prices for drugs. Nefarma says this Act threatens the industry's future viability and contravenes both European Union free traffic of goods and services legislation and the EU Transparency Directive.

By July it also became clear that the ban on Appendix 1B would continue. This refers to the ruling introduced in June 1993 that new drugs may be included in the basic insurance package only if they are the sole treatment for a condition or are comparable to existing drugs. Drugs which "merely" improve treatment are banned, unless they are new drugs which reduce treatment costs by around 20%.