The reference price system of medicines will reduce medicinal costs significantly

The reference price system for medicines, which was taken into use in the beginning of April this year, will reduce the medicinal costs in Finland by 40-120 million Euros. Another factor reducing medicinal costs has been the generic substitution regime implemented in 2003, which has reduced medicine prices by up to 60 per cent.

The reference price system for medicines compliments the generic substitution regime, which has been implemented since 2003. Medicines belonging to the same reference price group are defined by the National Agency for Medicines. They are medicines, which are exchangeable and eligible for reimbursement by the Social Insurance Institution of Finland, Kela. The reimbursement by Kela will be paid according to the reference price of the particular group of medicines. If a patient wants to purchase a more expensive medicine prescribed by a doctor, the cost in excess of the reference price is paid by the patient himself.

The aim of the reference price system is to control the increase in medical costs reimbursed by Kela. This will not affect the quality of medical care because the collateral product has to be biologically equivalent to the original medicine in order to be permitted to enter the medicine markets.

The reference price system has been used previously for instance in Germany, Holland, Sweden and Australia. The system has reduced medicine prices by 10-29 per cent in these countries.

More information on the reference price system can be found on the website of the Ministry of Social Affairs and Health at www.stm.fi/en.