2024-07-18 10:15:08
“The reform is fundamentally flawed, which means it can backfire badly on every patient who needs treatment. The discussion in the government yesterday also proved that there are many unanswered and unresolved issues that will cause chaos. The reform was guided and based on political promises and ultimatums in an authoritarian manner, not on calculations, risk assessment and long-term vision. Unfortunately, the changes will affect patients the most, because the operating conditions for local pharmacies, drug supply companies, pharmacists and Latvian drug manufacturers will change significantly under the pricing model approved by the government, which will unfortunately force a review of the scope of services provided. The only visible beneficiaries and winners from this reform are the so-called international “Big Pharma”, which has once again proven in Latvia as well that its high profitability and huge resources are almost untouchable,” emphasizes LZR executive director Raina Dūreija-Dombrovska.
Unfortunately, both the Minister of Health and the Prime Minister deal with disinformation, claiming that the prices of all medicines in Latvia are higher than in Lithuania and Estonia. Statistics and data clearly show the opposite – the prices of the most popular medicines in Latvia are already almost half lower than in neighboring countries. In addition, the main differences for the patient are determined by the drug compensation systems established by the countries, which are significantly wider in Lithuania and Estonia and, accordingly, the patient’s payment for the drugs he needs is lower.
LZR explains that 94% of the Latvian drug market is already made up of directly imported drugs, which creates high risks for the physical availability of drugs in situations where there are interruptions in international supplies. With the amendments approved by the government yesterday, these risks are only increasing. If until now due to the poor state funding, the focus was on the financial availability of medicines, then when these amendments come into force, Latvian residents will also face serious complications in the physical availability of medicines in pharmacies, especially in remote regions of Latvia.
Latvian drug manufacturers are currently making substantial investments in the development of patent-free drugs, which are cheaper than original drugs protected by a patent. By promoting the registration and entry of patent-free medicines into the market, the overall price level also decreases in the long term, as price competition develops. However, the amendments approved by the government yesterday will most likely reduce the activity of registration of patent-free medicines in Latvia, as it will no longer be economically justified. It will be a particularly painful “blow” for local drug manufacturers who are developing directly in the generic product segment. Consequently, patients’ opportunities to purchase cheaper medicines will decrease in the long term and Latvia’s dependence on medicine imports will only increase.
The association calls on the Ministry of Health to immediately develop a clear long-term strategy for the development of the compensable medication system in Latvia, increasing both the number of diagnoses and medications included in it, as well as funding. In Lithuania and Estonia, the list of reimbursable medicines and state funding is at least 30% wider, which means that the patient’s co-payment for the medicines he needs is lower, which is a particularly acute issue for improving the availability of medicines. Similarly, if the goal of the Minister of Health and the government is to reduce drug prices in the long term, then the value added tax (VAT) rates, which are among the highest in the European Union (EU) for prescription drugs in Latvia, must be reviewed.
2024-07-18 10:15:08