Ipha Agreement 2016

The four-year duration of the agreement until 2020 provides patients and their treating physicians with stability in the care and availability of existing and new medicines. The agreement between the government and the Irish Pharmaceutical Healthcare Association has resulted in savings of around 600 million euros. A new four-year agreement with the Irish Pharmaceutical Healthcare Association (IPHA) will reduce the price paid by HSE for medicines from 1 August. The current framework agreement on the supply and pricing of medicines came into force in 2016 and expires at the end of July. IPHA Master File Price Changes 2016.pdf (size 465.4 KB) ENDS Notes to Editors: Key pricing elements of the new pricing agreement include: Period: The new pricing agreement will be run for the period 1st August 2016 to 31st July 2020. Mix of reference basket: the basket of countries used for the implementation of international benchmark prices for annual price adjustments has been increased from 9 to 14 , Sweden, Portugal, Luxembourg, Greece, Italy, Austria, Belgium, Denmark and Finland, France, the Netherlands, Spain and the United Kingdom. The inclusion of a number of lower-priced countries will lead to lower prices in Ireland. Methodology: The methodology will remain the average price in the reference basket, adjusted for currency changes. Frequency of price adjustments: price adjustments are now annual (first on August 1, 2016, then July 1, 2017, 2018 – 2019). This will allow the state to obtain better value for money relative to the cost of medicines over the life of the agreement, as prices in other wicker countries will be reduced over time.

PCRS (Community Schemes) Reduction: The PCRS reduction (currently 4%) June 1, 2016, at 5.25% and 0.25% from August 1, 2018, reaching 5.5%. Hospital rebate: A new measure in this agreement is that a 5.25% discount from 1 June 2016, which will increase to 5.5% from 1 August 2018, will now apply to hospital products. Lower price of small molecules in the event of a loss of exclusivity: the price of existing patented drugs is reduced to 50% of the initial factory starting price. There will be no gradual reduction to 50%, as was the case in the 2012 agreement. Reduction of biologizing products on the Irish market: the price of biologic drugs is reduced by 20% and the discount is increased to 12.5% if a biosimilar arrives.