Pharma Industry Finland PIF supports payback mechanism to attain medicines savings imposed on companies

Lääketeollisuus ry

PIF is in favour of the payback mechanism proposed by the Ministry of Social Affairs and Health as a temporary measure to implement the medicines savings envisaged in the 2016 State budget.  

The savings imposed on the medicines reimbursement expenditure payable by the National Insurance Institution Kela amounts to 50 million euro next year.

Half of the savings is targeted at the medicines business, in other words the pharmaceutical industry, wholesalers and pharmacies. In PIF’s judgement, the payback mechanism whereby the companies pay a part of their 2015 net sales retroactively to Kela is the least detrimental savings measure from the companies’ perspective, among those available in the current situation. Resorting to this mechanism, the pharmaceutical companies will still be able to keep the medicines that are vital to the Finnish patients among the medicinal products reimbursable by Kela.  

“It is important for PIF that the cuts resulting from the government austerity targets are shared by all pharmaceutical sector actors from industry to pharmacies”, Jussi Merikallio, General Manager of Pharma Industry Finland PIF comments on the plan.

According to the programme of Prime Minister Juha Sipilä’s Government, the savings imposed on medicines reimbursements will be 150 million annually starting from 2017. However, the Ministry of Finance anticipated the cuts so that the first 50 million savings must be included already in the 2016 budget. Due to the hasty preparation timetable, there are very few potential means of savings available.

General Manager Jussi Merikallio points out that the medicines reimbursement expenses paid by Kela have grown only moderately in the past few years.

“All this takes place in a context where the Finnish population is ageing and pharmaceutical development is contributing to an increasingly outpatient-oriented healthcare system which, in the end, decreases society's expenses", he reminds.

The legislative draft by the Ministry of Social Affairs and Health on the implementation of medicines savings is currently going through the round of opinions after which the bill progresses to Parliament. Pharma Industry Finland PIF sent its own opinion to the Ministry of 9 October 2015.

For further information:

Jussi Merikallio

General Manager

Pharma Industry Finland PIF

Tel: +358 50 667 48

12. Oct 2015