Hungary: "No" To Drug Price Cuts

In Hungary, the local drug industry association, Magyosz, and theAssociation of International Pharmaceutical Manufacturers have rejected official calls for a 5% drug price cut, reports MTI Econews (Marketletter September 22). Producers have decided to stick to the 1997 prices set after talks with officials in 1996.

The cuts, sought by the Ministry of Welfare and the National Health Council, were designed to reduce 1997's National Health Fund deficit, which was targeted at 3.8 billion forint but is now put at 40 billion forint ($203.6 million), including a 10 billion forint ($50.9 million) overshoot in the 85 billion forint drug price subsidy budget. The Ministry had said the price cut would have reduced the deficit by 500-600 million forint in the fourth quarter.

Supplementary Health Budget Approved Meantime, the cabinet has approved the 1997 supplementary health budget, with revenues of 514 billion forint and expenditures of 544 billion forint. The original budget's revenue figure has been reduced by 7.2 billion forint, while the expenditure figure has risen by 18.1 billion forint.