Greece Acts On Pharma Spending

Greece has begun to carry out its promise to curb excessive spending inthe drug sector, by limiting supplies to social security fund members and reassessing the profit margins of producers, importers and pharmacists.

The government has said there will be no price rises, and even that prices could drop 16%. This would cut government spending from 584 billion drachmas ($2.11 billion) in 1996 to about 480 billion drachmas. Greece spends 50% more on medicines per capita than the European Union average.

Health Minister Costas Geitonas said doctors prescribe too many drugs and substitute cheaper products with more expensive ones, leading to constant price rises, while Deputy Social Security Minister Nikos Pharmakis says the number of drugs prescribable under social security should drop from 4,500 to 2,800.