New law will cut medication prices by up to 20pc

9 June 2005

MADRID — A new law to cut the price of medication could save the country as much as EUR 1.4 billion, the health minister claimed.

Elena Salgado told the Spanish parliament the new law will save EUR 1.48 billion over three years.

The law is expected to come in to practice at the start of next year.

The Law of Guarantees and Rational Use of Medication and Health Products will cut the price of drugs sold in chemists.

This will mean a 20 percent reduction in the price of many drugs which have been on the market for more than ten years.

These drugs must have a generic equivalent a opposed to the brand name.

Many people prefer to use chemists instead of going to doctors in Spain.

But the Socialists want to cut the price of drugs as many prescription drugs have to be refunded by the health department.

This will encourage people to have the generic, not the brand drug, which should be cheaper.

[Copyright EFE with Expatica]

Subject: Spanish news