New medicine pricing policy approved by Latvian government

On Tuesday, July 16, the Cabinet of Ministers approved the amendments to the regulations prepared by the Ministry of Health (VM), which give the green light for the implementation of the new medicines mark-up model in Latvia.

It foresees a 15-20% reduction in the price of prescription medicines, which citizens will experience as of January 1, 2025, the VM said.

The VM had hoped to introduce the new pricing model for prescription medicines this autumn, but after hearing industry representatives, the government decided to extend the deadline to January 1, 2025.

There will be one fixed mark-up per pack for all reimbursable and prescription-only medicines, regardless of price, for wholesalers, and fixed mark-ups in three price groups for pharmacies.

The price of the manufacturer's medicines will not exceed the price in Lithuania and Estonia, and it will be stipulated that a manufacturer will only be able to make price changes once every 12 months.

To strengthen the role of the pharmacist and compensate pharmacies for the loss of revenue, a prescription service charge will be introduced - 75 cents per prescription for residents.

The VM stressed that, regardless of the introduction of prescription charges, people will still see a significant reduction in prescription prices. In addition, children under 18 and deprived persons will be exempted from prescription charges.

During the Cabinet meeting, the industry continued to voice its concerns, pointing out that the proposed reform of medicine prices is being rushed through and that consultations with the healthcare industry are formal, rather than aimed at discussion, understanding the specificities of the sector and agreeing on the best solutions on the merits.

The industry also reiterated that the reform promoted by the VM foresees a reduction in the number of pharmacies and the availability of medicines to the population.

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