Hungary squeezes drugs budget in an attempt to cut back on public spending

In response to the global economic downturn, coupled with the fast depreciation of the national currency against the euro, the Hungarian  government adopted drastic steps to cut back public spending by 200.0  billion forint ($815.2 million). Among other cost-cutting measures, the  government plans to curb health care spending by 30.0 billion forint,  half of which must come from savings on the National Health Insurance  Fund's (OEP) drugs budget.

The last cabinet meeting on March 11 failed to determine the exact areas  of health care affected by the measures but proposals leaked to the  press suggest that, according to the government's proposal,  reimbursement rates would be reduced significantly and the price of  certain groups of drugs would be drastically increased as of April 1  this year. Cardiovasculars, cholesterol reducing drugs,  gastroenterology products, psychostimulants and anti-allergy agents  are all expected to be eligible for lower subsidy and, under the new  cost-cutting rules, cancer patients would not be granted a subsidy on  branded oncology products but generics only.

Another blow for drugmakers