The Netherlands to Set Lower Maximum Prices

Country: NETHERLANDS | Region: EUROPE | Type: Reference Pricing (IRP) | Keywords: #maximumdrugprices #medicinespricesact #ministryofmedicalcare #patentedmedicines
#policy #regulation

PRICENTRIC BRIEF:

  • Since 1996, a maximum price for medicines in the Netherlands has been based on the average price in Germany, Belgium, France, and the United Kingdom; however, the Netherlands is swapping out Germany for Norway, where prices tend to be lower
  • Bruno Bruins, Minister of Medical Care, said, “With Norway as the new reference country, our maximum prices are around the European average”
  • The amendment, which took effect this past week, will mainly affect the price of medicines that are still patented, and the Netherlands explained this will lead to an estimated savings of 300 million euros each year

THE DETAILS

AMSTERDAM, The Netherlands – As a result of an amendment to the Medicines Prices Act (WGP), from April 2020 the Netherlands will set lower maximum prices for medicines.

Since 1996, a maximum price for medicines has been based on the average price in Germany, Belgium, France, and the United Kingdom. However, the Netherlands is swapping out Germany for Norway, where prices tend to be lower.

The amendment, which took effect this past week, will mainly affect the price of medicines that are still patented. The Netherlands explained this will lead to an estimated savings of 300 million euros each year.

Bruno Bruins, Minister of Medical Care, said, “We have a broadly insured package of medicines and I see that more and more promising new medicines are coming onto the market. That is good news, but it must remain affordable. In recent years, our pricing system has been out of control. We will now straighten that out.

“We do this carefully, because the adjustment may not lead to manufacturers deciding not to place their product on the market in the Netherlands. With Norway as the new reference country, our maximum prices are around the European average. This way we ensure that medicines remain affordable and available.”

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