Russia to Direct Reimbursement Subsidies to Suppliers

International reports have quoted Russia's health minister as saying that the country's new drug reimbursement plans will channel state subsidies directly from regional insurance funds to drug suppliers. Under previous arrangements, the state's contribution would have passed to insurers, adding a further link in the subsidy chain.

The cost of Russia's new reimbursement programme, which had been scheduled to be introduced at the start of this year, is estimated at some RUB51-53bn (US$1.7-US$1.8bn). The scheme will also enable free treatment for chronic illnesses, although there are already concerns that procurement deals with manufacturers will substantially favour the locally based sector.