In keeping with Viktor Orbán’s history of intervening in the market, the Hungarian government may now put a profit cap on medicines.to reduce the price of pharmaceutical products for Hungarians.
Hungary’s economic minister, Márton Nagy, posted on Facebook that he held talks with Dávid Greskovits, president of the Hungarian Pharmaceutical Manufacturers’ Association (MAGYOSZ) regarding recent price increases of non-subsidized medicines.
According to Portfolio, this could mean that the government will now turn to pharmaceuticals to introduce their margin caps, as they have with food items, hygiene products, and bank fees.
According to the latest statistics from the Central Statistical Office (KSH), the price of medicines increased by 5 percent year-over-year in April, a significant jump from the price increase rate of under 3 percent at the beginning of the year. In April, pharmaceutical prices increased by 3.6 percent compared to the previous month, which is the highest month-on-month growth rate since 2007.
It is not known by how much the price of non-subsidized medicines increased, but the government probably considers this trend unfavorable.
Portfolio explains that the subsidized circle includes medicines that the state health insurance company (NEAK, as a buyer) has included in the social security subsidy (these are prescription-only), meaning the patient encounters a price lower than the real “commercial price” in the pharmacy and the difference is paid by the state in the form of a subsidy. However, there are strict conditions for inclusion in the TB subsidy and a very serious price regulation mechanism makes it practically impossible to raise prices in that circle. However, pharmaceutical manufacturers can significantly change prices for non-prescription products.
For this reason, any direct intervention in this market can trigger a chain reaction with quite serious consequences. If a manufacturer perceives that there is no potential return on investment for a given product or group of products, it may decide to withdraw its medicine from the Hungarian market, which (if there is no direct substitute product in the subsidized circle) may directly harm the affected patients. In other words, any market intervention must be carefully considered by the ministry acting with the intention of price regulation, as any measures may affect the well-being of patients.
The portal also points out that the Ministry of Health has now negotiated with MAGYOSZ, but the Association of Innovative Pharmaceutical Manufacturers (AIPM) represents at least as much manufacturing weight, so it remains to be seen whether the ministry will continue negotiations with these companies. The other important question is whether the ministry will focus only on pharmaceuticals, or will it broaden its scope and pay attention to dietary supplements, vitamins, and medicinal products as well.
The post Hungary takes on Big Pharma: Orbán government plans profit cap for medicine appeared first on Remix News.
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