Czech govt's EC fines threat over drug rules

The government of the Czech Republic is facing financial penalties imposed by the European Commission over its rules for issuing payments for drugs from the state-controlled health insurance organization (VZP). The threat comes after two earlier warnings were not acted upon by the Czech government and the country's recently-appointed Health Minister, Tomas Julinek, has described the situation as "critical."

The problems appear to stem from the actions of the previous Czech Health Minister, David Rath (Marketletters passim), who faced considerable opposition to his pharmacy price reforms. The Health Ministry argues that drug prices are currently 30% higher than those negotiated by the VZP and drugmakers.