Israel's Health, Finance ministries to freeze rise in medication prices
In order to freeze the price increase, Israeli law requires the approval of the finance and health ministers, as well as the ratification of the Health Committee.
Finance Minister Bezalel Smotrich and Health Minister Moshe Arbel will cooperate in order to freeze the expected rise in prescription medication prices, their ministries announced on Tuesday afternoon.
In order to freeze the price increase, Israeli law requires the approval of the finance and health ministers, as well as the ratification of the Health Committee.
Medication prices were expected to increase by 4-5% in the beginning of July, following the rise of the exchange rate of the Euro this year and in accordance with Section 3 (c) of the Control Order on the Prices of Commodities and Services Law of 2001.
The increase was expected to apply to about 1,700 medicines, which is around half of the prescription drugs, and will now be avoided, according to the statement.
Kan on Monday quoted an official in the Health Ministry who explained that the increase of the drug prices was considered because the rising exchange rate and the according rise in import cost, as well as the increasing production costs because of the rising cost of raw materials, could not be ignored anymore.
Prices fell in the beginning of 2023
In December 2022, the Health Ministry announced that prices of some 1,500 patented prescription medications were to fall by an average of 7.5% on January 1, 2023, compared to their cost in 2022.
The mechanism by which the price is determined is according to the average retail prices of the preparations and medicines in Belgium, Hungary, Spain, France, Great Britain, Germany and the Netherlands.
The price of the medicine is determined according to the three lowest prices among those countries and the changes in the exchange rates of the shekel against their foreign currencies. The price control is on the maximum price for the sale of the drugs. The consumers’ deductible to the health funds is also derived from it, the ministry said.
The calculation of the control prices for over-the-counter drugs is carried out in accordance with the Control Order on the Prices of Commodities and Services Law of 2001. Due to the greater competitiveness in the over-the-counter drug market, the price of these drugs is determined once and doesn’t change every year, unless an initiative request is launched to decrease the price.
Judy Siegel-Itzkovich contributed to this story.
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