To reduce patient fees for healthcare services in Latvia, which are some of the highest among EU member states, the Ministry of Health has prepared and submitted for a public discussion a conceptual report on financial accessibility of medicines, the ministry reports.
One of the proposals is reducing VAT rate from 21% to 5% in order to reduce the price of medicines that residents pay.
The report includes five ways to help reduce patient fees for medicines:
– Reduce VAT rate from the current 12% to 5%;
– Set a specific permitted markup for wholesale traders instead of percentage from producer prices. On a fixed level, the markup of medicines worth more than EUR 200 are not to exceed EUR 6 – similarly how it is in Lithuania and Estonia;
– Set a maximum allowed general patient fee amount for compensated medicines per calendar year – EUR 250 – above which no patient fees should be applied;
– Review medicine price-formation principles by reducing the end medicine prices for patients. This would be possible by making the medicine price in the compensated medicines system and outside of it to be equal to prices in other EU member states;
– Reduce patients’ costs for medicines, introduce a general medicine prescription system for non-compensated prescribed medicines.
“Personal payments from “residents’ wallets” play a major part in Latvia’s healthcare system. Patients’ direct payments for healthcare services in Latvia are some of the highest in the EU, and this negatively affects residents’ medicine use habits and state of health, which is already one of weakest in Europe. VAT reduction for medicines would make prices more accessible to patients,” says Minister of Health Daniels Pavluts. “We presented this proposal, considering that prices will further surge in Latvia due to the Russian-Ukrainian war.”
The minister also notes: “With inflation on a rapid rise, the ability of the least socially protected residents to purchase medicines will drop even more, and we need to think about protecting our residents’ health.”
To improve availability of medicines, the Ministry of Health will continue developing the state compensated medicines and medical equipment system for chronic patients, fully or partially covering the cost of new medicines and medical devices. This will help improve financial accessibility of medicines, which is required to reach the public health goals outlined in the Public Health Guidelines 2021-2027.
The ministry will also continue promoting public awareness about rational use of medicines and supplements, as well as enhance the role of pharmacists in maintaining public health and the profession’s independence and neutrality.
Ministry of Health reminds that accessibility of medicines is highly important to improve residents’ health. Use of medicines significantly improves public health indexes – reduces premature mortality, extends lifespan and improves quality of life.
The conceptual report was submitted for public discussion, which will continue until June 16. For proposals, residents are invited to use TAP portal. (BNN/Business World Magazine)
