Russia to Widen Scope of Free Treatment Programme

Russian authorities are to issue an expanded list of drugs eligible for reimbursement under the government's new US$1.8bn free treatment programme. The new scheme was introduced earlier this year, and replaced social benefits with cash compensation for selected beneficiaries.

The government's move appears to follow calls from regional authorities to expand the scheme beyond the 300 medicines on the current list. Reports have cited a lack of anticonvulsants, treatments for mental illnesses and bronchial asthma drugs in the new framework.

In a further move, the government also hopes to introduce a new law to curb the activities of so-called offshore companies, which are understood to have become dominant in the trade in cheap imported drugs, partly because of the slow pace of official approvals for imports. Government statistics indicate that Russia imported drugs worth $2.83 billion in 2004, with copy products accounting for roughly 10 percent of the overall market.

Meanwhile, the multinational sector has reportedly lobbied for increased prescriptions by individual doctors, as opposed to bulk supplies of cheap, often illicitly imported or produced drugs. However, cost concerns are growing, as officials have already announced a sharp rise in the amount of drugs prescribed under the scheme only months after its introduction. The authorities have also attempted to negotiate deals directly with suppliers, in order to reduce the influence of insurance-based funds, a move that may substantially benefit the locally based manufacturing sector.