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Switzerland to Review Pharmacy Cost Controls

May 23, 2005

Switzerland's Federal Council is to review its pharmacy payments system in the wake of changes to the framework whereby health funds compensate drug retailers. Under a contractual agreement with insurers, Swiss pharmacies receive payments that do not reflect the value of high-cost pharmaceuticals. Instead, retailers generate added revenue by managing patient data and offering advice to consumers.

However, consumer groups have opposed a 22% average rise in the fee patients make to pharmacies for managing their records, to some CHF9.20 (US$7.47). The most recent adjustments to the scheme have also included more generally accepted measures, such as ensuring that the payments are made on a quarterly basis, rather than a per doctor visit basis. The change is expected to cut administration costs substantially.

Nevertheless, the government is to conduct a review of the entire process before the latest fee agreement expires next year. Despite the fact that the system has been largely successful in restraining costs, the authorities could opt to introduce a more flexible scheme.