Dutch Drug Pricing Plan "Will Be Disastrous"

In all probability, 1995 will come to be regarded as a disaster for pharmaceutical pricing in the Netherlands, as a result of the drug pricing legislation now being proposed by Health Minister Els Borst-Eilers, according to industry consultant Frans Jansen.

The Health Ministry's proposal for the new legislation, (the Wet Geneesmiddelenprijzen - WGP) points to the desirability of guaranteeing the availability of drug products at reasonable prices, and consequently of providing regulations to enable the fixing of maximum drug prices. According to the bill's accompanying Memorandum of Explanation, Dutch drug prices are considerably higher than in other European Union member states, where there are price-regulation systems in operation which the Dutch government is now keen to adopt.

However, the Dutch system of limiting reimbursement prices already provides controls on drug prices, and with the proposed new legislation, drug pricing regulation in the Netherlands will have the effect of a centrally-planned economy, according to Mr Jansen.