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Government and ministries Media

Narrow or broad model for drug reference pricing?

Ministry of Social Affairs and Health
5.9.2007 11.30
Press release 254/2007

An MSAH working group has prepared an analysis of two basic models of reference pricing for medicines to enable policy makers decide which should be used.

The two models are based on a specific and broad approach. The first takes the active ingredient of medicines as the pricing reference basis - the generic model. The second is based on use in treatment - the therapeutic model. Both are in use in various countries. The study looked at how they are applied in 14 countries and set out an impartial review of what they entail.

The models form the bases for medicinal drug reimbursement arrangements, and may contrast with retail price referencing.

A government framework decision taken in May this year is committed to ensuring that controls are put on the rising costs of pharmaceuticals using best practice-based price reference methods.

Further information: Mr Matti Toiviainen, Deputy Director-General, MSAH, tel. +358 9 160 74191

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