NETHERLANDS APPROVES NEW PRICING MEASURE

Dutch competition regulator NMA has approved new pricing proposals put forward by the government. The scheme will offer preferential reimbursement for drug suppliers, which will offer coverage on only the cheapest cholesterol-lowering and gastric acid products.

The new framework is due for introduction on July 1, with other leading health insurers expected to comply by the end of the year. However, the NMA notes that only three products and five insurers will be affected, and it appears that that the system does not amount to wholesale price-cutting. Nevertheless, the plan is likely to set a further important precedent for future cost control measures.

However, the measures follow earlier schemes to reduce drug prices, particularly for generics. Generic substitution has been permitted since early 2004, leading to a 40% fall in generic prices and a 13% decline in the price of branded drugs and parallel imports. An alliance between the government and health sector groups has also enabled a drug price freeze and further industry-wide discounts. Prior to this, the market had been growing by an annual 10% in recent years.