Illustration (photo: Shutterstock)
Good news: precisely at a time when many products are becoming more expensive, the Ministry of Health announced this evening (Tuesday) a reduction in the maximum prices of approximately 1,500 prescription drugs, starting January 1, 2023. The prices of the drugs will decrease by an average rate of approximately 747% compared to their price in 2022.
According to the Ministry of Health’s announcement, the drugs that will be discounted are prescription drugs with patents that are monitored according to Chapter 5 of the Law on Supervision of Commodities and Services. The price of non-prescription drugs remains the same as in previous years.
(Photo: Ministry of Health) The mechanism by which the price is determined is based on the average retail prices of the preparations and drugs in the designated countries – the “citing countries” (Belgium, Hungary, Spain, France, Great Britain, Germany and the Netherlands) according to the three lowest prices among the countries and the changes in rates The exchange of the shekel against the foreign currency. It is important to note that the price control is on the maximum price for the sale of drugs, and that the consumers’ deductible to the health insurance funds is also derived from it, in accordance with the collection plans of the health insurance funds.
The calculation of the control prices for non-prescription drugs is done in accordance with the “Control Order on the Prices of Commodities and Services (Application of the Law to Preparations) 2001” which states that the level of supervision applicable to non-prescription preparations that are not preparations for general marketing is a request for a price increase according to Chapter VI That is, in light of the greater competitiveness in the non-prescription drug market, the price of these drugs is determined once and does not change from year to year, but only if an initiative request is made to increase the price of the inspection.
“The pharmaceutical market in Israel is dynamic, high-quality and diverse, with many innovative drugs entering the State of Israel in recent years. Since drugs are a basic and essential product, drug prices are under the supervision of the Ministry of Health,” said Haim Huppert, VP of Planning, Budgeting and Pricing. “Since its introduction As of the new quote mechanism in 2018, the prices of controlled prescription drugs decreased by approximately 25%. The decrease in drug prices is done while balancing the price and the ministry’s commitment to maintain the dynamism and innovation in this market. The current drop in prices is expected to also lead to a decrease in the deductibles paid by health insurance policyholders for drugs.”
Prof. Nachman Ash, Director General of the Ministry of Health, added that “the supervision of drug prices is an important tool in curbing the rise in drug prices, which leads to a drop in prices. This is the way to make a wide variety of medicines accessible to the entire population, which allows more medicines to be included in the state health care basket and to lower the co-payments which are derived from the list price. We are working to continue the trend of reducing self-participation in other axes as well.”
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