Hungarian government spending on drugs shows impressive results

The first results of the strict cost saving measures introduced by the National Health Insurance Fund (OEP) in Hungary this year are revealed in a recent document by the Ministry of Health (Marketletters passim). This estimates that pharmaceutical reimbursement will be around 300.0 billion forint ($1.57 billion) in 2007.

Drug manufacturers will contribute with 40.0 billion forint. Thus the "net" OEP drugs budget is predicted to reach 260.0-270.0 billion forint in 2007. The National Insurance Fund predicts that this will be the first time in many years without a severe budget deficit in Hungary.

The short term positive results, however, hide potential risks. The 8% growth of the Hungarian pharmaceutical market during the 12 months to March suggest that the impressive OEP savings had to be financed by the drug manufacturers and the patients. The contribution of pharmaceutical manufacturers is expected to double in 2007 compared to the previous years (20.0 billion forint in 2005 and 22.5 billion forint in 2006).