Further Price Reduction in the field of Medication

The Federal Council has decided on further price reductions in the field of pharmaceutical products. Its decisions are pointed toward the raise of the share of generics of sold medicaments, and to shape the mechanism for the reduction of pharmaceutical prices more dynamic. These measures, which will be effected March 1, or respectively January 1, are to enable savings of 230 million francs on a yearly basis in the course of the following years.

In order to reduce the prices of generics and original products with expiring patent protection, the so called price differential law is adjusted. For the determining of prices of generics, not three but five levels are applied. With this measure, the number of available generics on the market can be increased, and the costs of medicines can be lowered. As of 2015, one should be able to save 100 million francs on a yearly basis.  According to the so called law of differential cost sharing, patients who opt for generics, pay only 10% cost sharing, not 20% as is the case with original compounds. This rule is designed in a more flexible manner. Therewith, one is to prevent the system from not changing subsequently to the launch of a new generic, and to prevent the prices not moving therewith. Further, one is to remove the considerable difference in prices between generics of the same active ingredient. By this measure, one should achieve savings of almost 130 million francs on a yearly basis.

Source: BAG

BAG-Bulletin 08/11 download in PDF