If the Medicines and Related Substances Amendment Bill is passed, consumers will be expected to pay more than they had bargained for when it comes to medication. The Bill proposes an average increase of 23% in medicine prices; pushing the average fee from R18 to almost R50.

Jan Howell, a consulting actuary at Old Mutual Actuaries and Consultants, said this could drastically increase claims against medical funds. Health Schemes are researching and analysing the implications of the new tariffs. If the proposed tariffs are accepted both medical scheme members and people who use cash to pay for their prescriptions will pay significantly more for their medication. The new medicine tariffs will increase medical schemes’ costs by about R2 billion a year.

However the Pharmacy Stakeholders Forum (PSF) welcomed the draft publication and the proposed dispensation fee which will generate an average income to pharmacists of R38. According to forum coordinator Ivan Kotze, “If the target of R38 is not achieved, the dispensing fee will have a negative impact on the income of pharmacists, and will again threaten the continued viability of community pharmacies.”

Interest groups can comment on the proposed new tariffs until 22 August 2010.

Sources: citypress.co.za; fin24.com; Image source: Google images.