COMPETITION COUNCIL CALLS FOR OPINIONS REGARDING MARKET STUDY REPORT ON REIMBURSABLE PHARMACEUTICALS

The Competition Council (hereinafter – KT) has submitted its preliminary market study report on reimbursable pharmaceuticals for public consultation. KT experts aimed at finding out if current legal regulation does not create obstacles for pharmaceuticals to enter the market of reimbursable pharmaceuticals and stay in it, and whether competition in the market is efficient.

Preliminary report has revealed that the entry for analogous but cheaper pharmaceuticals into the market is restricted. KT experts also found that legal regulation creates favourable conditions for the manufacturers who offer more expensive pharmaceuticals compared to their competitors. It leads to weak competition among the products included in the price list of reimbursable pharmaceuticals. As a result, consumers are prevented from purchasing cheaper pharmaceuticals, the variety of pharmaceuticals does not increase and Compulsory Health Insurance Fund (CHIF) is used inefficiently. KT offers to amend conditions on the basis of which pharmaceuticals are included in the Price list of reimbursable pharmaceuticals and encourage the inclusion of more analogous pharmaceuticals in the Price list, which would ensure better competition.

Another problem is that the prices of pharmaceutical products funded by CHIF (so-called “basic“ price) are calculated on the basis of publicly declared but not factual prices, which enables manufacturers to manipulate the system of reimbursable pharmaceuticals and maintain higher prices.

In addition, KT experts note that doctors or pharmacists have a considerable impact on the consumer‘s choice of a product, therefore, KT suggests that customers should be better informed of analogous, equally efficient but cheaper pharmaceuticals.

More on the market study report (only in Lithuanian).

Having assessed the comments and proposals collected during the public consultation, KT will draw its final conclusions and  submit proposals to the Seimas, Government and Ministry of Health of the Republic of Lithuania.