New wave of French drug cuts threatened

29 June 2008

A new round of cuts in drug reimbursement is a key feature of a plan from the sickness insurance funds (CNAM) to reduce France's health budget deficit. Frederic Van Roekeghem, director of the national union of health funds (Uncam), outlined the proposals in response to a request from the Budget Minister, Eric Woerth. The aim is to reduce the current deficit of about 4.1 billion euros ($6.35 billion) to 2.8 billion euros in 2009. The current growth rate of health spending would otherwise create a deficit of around 6.0 billion euros, according to Mr Van Roekeghem, leading him to budget for a spending reduction of the order of 3.2 billion euros.

Growth in the reimbursement of drugs will now be restricted to 3.3% in 2009 through measures to lower drug prices and control prescriptions. A form of hierarchical criteria established by the government health watchdog (HAS) will be applied to drug prescribing, starting with cholesterol and ulcer drugs. To this effect, contracts are being signed with individual medical practitioners to encourage them to reduce prescribing costs. A further series of measures will be outlined to improve hospital performance. However, the most contentious part of the emerging plan is state support for the cost of treating chronic long-term illness.

The treatment of about eight million patients in France is currently fully supported but it is now being proposed that 100% reimbursement should be reserved for the treatment of "pathologies which are genuinely long and costly." Examples given include forms of diabetes or arterial hypertension with 250.0 million euros saved each year by this tightening of procedures. Mr Van Roekeghem added that cost controls achieved by physicians alone should generate 500.0 million euros in savings next year.

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