Few people aware of how to reduce drug bills

MOST IRISH people are concerned about the cost of their medicines but know little about ways of reducing their drug bills, according…

MOST IRISH people are concerned about the cost of their medicines but know little about ways of reducing their drug bills, according to a new survey.

Awareness of cheaper generic drugs, tax write-offs and preventative measures is very low and few have discussed cheaper drug alternatives with their doctor, the survey reports.

Despite an annual spend of €750 on prescription drugs, most consumers are unaware of any measures they could take to reduce the cost of their medicines, according to the survey carried out by pharmaceutical giant, Teva.

Just 3 per cent of those surveyed said drug costs could be reduced by prescribing cheaper generics as alternatives. However, one-quarter of consumers said they did not trust generic medicines, which are copies of drugs whose patent have expired.

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The cost-reducing measure with the highest recognition was the Drug Payment Scheme, which was identified by 14 per cent of recipients. This caps drug payments by individuals and families to €90 a month, with the rest paid by the State.

Just 6 per cent cited the Revenue Commissioners’ Med 1 tax allowance, which allows taxpayers to claim the cost of medicines against the lower rate of tax, as a way of saving money, and 6 per cent mentioned health insurance.

Spending on medicines under the Community Drug Schemes comes to almost €2 billion a year, and the amount is rising faster in Ireland than almost every other European country.

Pharmaceutical expenditure accounts for 13.5 per cent of total healthcare spending and the number of prescriptions written under the GMS has more than doubled in the past 12 years.

While Teva, as the world’s largest generic drugs manufacturer, has an interest in seeing more generics prescribed, the Government is hoping to make savings in the overall health bill by encouraging a shift away from name-brand drugs towards generic ones.

Researchers in St James’s Hospital have established that the rate of prescribing generics in Ireland is low compared with other EU states.

While other countries in northern Europe have made savings by encouraging doctors and pharmacists to substitute generics, in Ireland the rate has fallen significantly over the past decade.

“We are all conscious of the rising costs of drugs and medicines in Ireland, and of the rapidly growing numbers of older people in the population, so it is astonishing to learn that consumers are largely unaware of the steps they can take to cut their health costs in relation to medicines,” according to Sandra Gannon, general manager of Teva Pharmaceutical’s Irish arm.

However, three out of five people say they are not aware of generic drugs, the report finds, and only 55 per cent say they would trust them.

An unwillingness to switch appears to extend to the doctor’s surgery and healthcare outlet, where just 21 per cent of people report that their doctor or pharmacist has discussed prescription options.

Only 8 per cent had actually been offered a generic brand alternative.

Ms Gannon believes that consumer confidence will grow as public awareness of generic drugs increases but others have questioned the wider benefits that might accrue.

For example, Dr Michael Barry, consultant clinical pharmacologist at St James’s Hospital, has pointed out that while generic prescribing usually enhances cost-effectiveness this doesn’t always apply in Ireland because there is very little difference bet-ween the price of proprietary drugs and the available generics.

Nonetheless, Dr Barry, who chaired a review group on drug costs and possible savings, has recommended that the Government should examine the price it pays for generic medications but also encourage greater generic prescribing.

Pharmacists have also pointed out that when a GP prescribes a brand-name drug rather than using the generic name, they are legally obliged to supply that particular medicine.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.