The pharmaceutical market in the Czech Republic
is undergoing a gradual shift in decision-making practices, which may
significantly impact pricing and reimbursement regulations as well as the
entire pharmaceutical sector. Section 39c(2)(b) of the Public Health Insurance
Act has been in use for a long time; however, its true potential to influence
reimbursement dynamics is only now becoming apparent. The uncertainty arises
from the gradual convergence of differences between innovative biological
molecules entering the market and those already reimbursed. The concept of
comparably effective therapy thus becomes a risk factor for new medicinal
products.
How Does the New Approach Work? In a recent reimbursement revision
decision regarding JAK inhibitors (Ref. No. SUKLS274309/2022), SUKL determined
the reimbursement for certain indications based on the daily costs of
comparably effective therapy. This means that medicinal products were not
necessarily placed in the same reference group as the compared therapies, yet
their reimbursement was set according to cheaper alternatives from another
reference group, which included, for instance, generic drugs. In the case of
filgotinib, the reference product, a head-to-head clinical study (Combe, B. et
al.) comparing its efficacy with the TNF-alpha inhibitor adalimumab confirmed
direct clinical equivalence between these therapies.
This approach has several critical
consequences:
Reduction
in the reimbursement of innovative medicines – if the reimbursement of a medicinal
product is set according to another reference group that includes
generics, it automatically decreases regardless of the original
therapeutic value.
Domino
effect on other groups – once reimbursement is lowered in one group, this decrease can
reflect in reimbursement revisions across other reference groups, leading
to a gradual overall reduction in reimbursements.
Unpredictability
for pharmaceutical manufacturers – companies bringing new medicinal
products to market lack certainty about how their reimbursement will be
determined, as it may be derived from different reference groups without
formal inclusion in them.
Long-Term Impacts This new approach has not only short-term
effects on the reimbursement of specific medicines but also long-term
consequences for the entire pharmaceutical sector:
Reduced
attractiveness of the Czech market – if innovative medicines are
systematically undervalued, pharmaceutical companies may be discouraged
from introducing new medicines to the Czech market.
Impact
on patients –
lower reimbursements may lead to reduced availability of innovative
therapies and fewer treatment options for both patients and physicians.
Disruption
of reimbursement policy transparency – linking reimbursements across different
reference groups may complicate predictability and planning in the field
of pharmaco-economics.
Open Question: Where is the Boundary Between
Efficiency and Innovation Regulation? How might the domino effect manifest in
non-referential indications in the future? This case represents a breakthrough
in setting more than one additional increased reimbursement, meaning the
barrier of "only one increased reimbursement" is eliminated. On the
other hand, this new trend may lead to an intricate network of interconnected
reference groups with generic-based reimbursements, discouraging marketing
authorization holders from including their products in such groups.
The pharmaceutical market in the Czech Republic is undergoing a gradual shift in decision-making practices, which may significantly impact pricing and reimbursement regulations as well as the...
SÚKL, in the reimbursement review, assessed the expansion of JAK
inhibitors reimbursement for rheumatoid arthritis ("RA") with
moderate disease activity as sufficiently supported by clinical data and
desirable for clinical practice in the Czech Republic.
Given that such an expansion of reimbursement conditions would result in
an increase in the number of treated patients, it is necessary to evaluate the
cost-effectiveness and the budget impact. Since SÚKL did not receive a
pharmacoeconomic evaluation from the participants in the required scope, the
expansion of reimbursement for rheumatoid arthritis with moderate disease
activity was carried out by setting the reimbursement for JAKi at the cost
level of another therapy that is (at least) equally effective and already
reimbursed for the target group of patients with RA and moderate disease
activity. The approach chosen by SÚKL in the ongoing reimbursement review,
therefore, by setting two reimbursement levels, ensures that JAKi remain
reimbursed for RA with high disease activity in the second and subsequent lines
of treatment with higher reimbursement, while JAKi are also newly reimbursed
for moderate disease activity, though at a lower reimbursement amount.
The participant argued that a medicinal product may only have one
additional increased reimbursement level set, alongside the basic reimbursement
(not multiple increased reimbursement levels, as SÚKL did). SÚKL refers to
Section 39b, paragraph 11 of the Health Insurance Act, which does not exclude
the possibility of applying it based on the evaluation of a medicinal
substance, product, or pharmaceutical form for several selected indications or
for multiple patient groups.
SÚKL also states that during the ongoing reimbursement review, no
statements were received from payers regarding any difficulties in reporting
healthcare when establishing multiple reimbursement levels.
Articles from decision-making practice are based on publicly available
texts from decisions by the Ministry of Health of the Czech Republic and
decisions by SÚKL.
On the website of Pharmeca a.s., you can continuously follow an overview of the pricing and reimbursement decisions issued by SÚKL and the Ministry of Health of the Czech Republic.
Articles on decision-making practice are based on publicly available texts of the Ministry of Health and SÚKL decisions.
Are you interested in reading regular commentaries on decisions by
Pharmeca a.s.? Feel free to contact us.
At Pharmeca, we help you navigate the complex landscape of
pharmaceutical and medical device information. We also offer flexible services
that can be tailored to your needs at any time.
Our market position and experience allow us to support you whenever you
need expert guidance.
On February 21, 2025, the Ministry of Health of the Czech Republic published the following opinion on the procedure for assessing the financial impact on the health insurance system when determining or changing the amount and conditions of reimbursement for a medicinal product or food for special medical purposes:
"The Department of Medicinal Products and Medical Devices of
the Ministry of Health of the Czech Republic (hereinafter referred to as
"the Ministry"), in view of the wording of the applicable Act No.
338/2024 Coll., amending Act No. 48/1997 Coll., on Public Health Insurance and
on Amendments and Supplements to Certain Related Acts, as amended, Act No.
592/1992 Coll., on Insurance Contributions for Public Health Insurance, as
amended, and Act No. 378/2007 Coll., on Medicinal Products and on Amendments to
Certain Related Acts (the Medicinal Products Act), as amended, which, with
effect from January 1, 2025, changes the principles in the area of monitoring
limits of deductible co-payments for partially reimbursed medicinal products
and foods for special medical purposes (the protective limit) and the
subsequent reimbursement of deductible co-payments exceeding the protective
limit under Act No. 48/1997 Coll., on Public Health Insurance and on Amendments
and Supplements to Certain Related Acts, as amended (hereinafter referred to as
"the Public Health Insurance Act"), hereby issues its opinion on the
procedure for assessing the financial impact on the health insurance system
when determining or changing the amount and conditions of reimbursement for medicinal
products or foods for special medical purposes.
The method of assessing the financial impact on the health
insurance system (hereinafter referred to as "budget impact") is
expressed in the third and fourth sentences of Section 15(8) of the Public
Health Insurance Act, which state that "The budget impact is determined
as the difference between the costs of treating a given disease associated with
the use of a medicinal product or food for special medical purposes that would
be reimbursed from health insurance funds, and the costs of treatment using
another medicinal product, food for special medical purposes, or treatment
method that is already reimbursed from health insurance funds. The budget
impact must be in accordance with the public interest pursuant to Section
17(2)."
If, under Section 15(9) of the Public Health Insurance Act,
the anticipated budget impact associated with determining reimbursement for a
medicinal product or food for special medical purposes shows an increase in
expenditures from the health insurance system, the budget impact assessment
must be conducted through a budget impact analysis submitted by the applicant,
which the State Institute for Drug Control assesses during the proceedings [see
Section 39b(2)(c) of the Public Health Insurance Act].
The requirements of the third and fourth sentences of
Section 15(8) of the Public Health Insurance Act for the applicant-submitted
budget impact analysis and the procedure of the State Institute for Drug
Control in its assessment are elaborated in the methodology SP-CAU-27
(hereinafter referred to as "the methodology") as of the date of this
opinion. For the purpose of quantifying the budget impact, the methodology
allows only the perspective of health insurance expenditures (for completeness,
it should be noted that this applies outside of proceedings conducted under
Section 39da of the Public Health Insurance Act).
The Ministry is aware from its own official activities that
the State Institute for Drug Control currently considers only direct costs
(both pharmaceutical and non-pharmaceutical) demonstrably incurred from health
insurance in connection with the therapy of the given disease as relevant costs
in the budget impact assessment, whereby the State Institute for Drug Control
considers only the costs at the level of reimbursement from health insurance,
or costs corresponding to the maximum consumer price if this price is lower
than the reimbursement amount, as direct pharmaceutical costs for both the
evaluated intervention and the comparator.
However, as the Public Health Insurance Act stipulates
that the budget impact is determined as the difference in treatment costs for
the given disease (from the perspective of health insurance) associated with
the use of medicinal products, the Ministry considers it necessary to include
in the relevant direct costs for the evaluated intervention and the comparator
also the amounts of deductible co-payments reimbursed by health insurance funds
above the protective limit of the insured, which, in connection with the
amendment to the Public Health Insurance Act, will be a direct expenditure of
health insurance funds paid to pharmacy service providers related to the
treatment of the given disease.
For this reason, it is necessary that the applicant, within
the submitted application, consider the anticipated budget impact, taking into
account any deductible co-payments for the evaluated and comparator
intervention.
If, in the assessment of the anticipated budget impact under
Section 39b(2)(j) of the Public Health Insurance Act in proceedings on
determining or changing the amount and conditions of reimbursement for a
medicinal product, it becomes apparent that this anticipated reimbursement
impact on health insurance funds, taking into account the anticipated amount of
deductible co-payments (representing the cost of treating the given disease),
shows an increase in expenditures from the health insurance system, in such a
case, the applicant must submit a budget impact analysis that also considers
the amount of the anticipated deductible co-payment.
According to the Ministry, in order to fulfill the purpose
of the aforementioned legal provisions concerning the new protective limit
rules, it is necessary that, in the budget impact assessment by the applicant
and the budget impact evaluation by the State Institute for Drug Control, the
deductible co-payment amounts applied in practice are considered, rather than
the highest possible deductible co-payment amounts calculated according to the
second sentence of Section 16b(1) of the Public Health Insurance Act.
The Ministry further emphasizes that the deductible
co-payments for partially reimbursed medicinal products and foods for special
medical purposes, which count towards the insured person's protective limit,
are known to the State Institute for Drug Control from its own official
activities, as well as to health insurance funds, and marketing authorization
holders can also determine the actually applied amounts of deductible
co-payments from the publicly available data on the website of the State
Institute for Drug Control at https://prehledy.sukl.cz/prehled_leciv.html#/ or
calculate them from data on already reimbursed medicinal products (comparators)
published at regular intervals on https://opendata.sukl.cz/?q=katalog/lek-13
(note: link valid as of the date of this opinion).
For practical implementation, the Ministry believes that the
above-mentioned change in the procedure for budget impact assessment can be
realized as follows. The budget impact analysis will, in addition to the
currently expressed budget impact, also include a separately calculated budget
impact incorporating the costs of deductible co-payments for partially
reimbursed medicinal products and foods for special medical purposes that would
arise for health insurance funds when exceeding the annual protective limit.
However, presenting a separately calculated budget impact with applied
deductible co-payments will not be entirely necessary (or would be redundant)
in cases where no deductible co-payment arises in the determination or change
of the reimbursement amount and conditions for the evaluated intervention.
In conclusion, the Ministry states that this opinion does
not interfere with the current practice of assessing cost-effectiveness
analyses."
The original document is available on the website of the Ministry of Health of the Czech Republic.
The text of the opinion was translated using ChatGPT 4o.
The Ministry of Health of the Czech Republic has published an opinion on the procedure for assessing the financial impact on the health insurance system when determining or changing the amount and...
The European Medicines Agency (EMA) has
announced the launch of a new platform designed to routinely monitor shortages
of centrally authorized medicines. This platform is a direct result of Regulation
(EU) 2022/123, which aims to improve preparedness for and mitigation of
medicine shortages across EU member states.
Key Points:
Platform
Availability:
The European Shortages Monitoring Platform (ESMP) is now accessible
online.
Mandatory
Usage:
Starting from February 2, 2025, all Marketing Authorization Holders (MAHs)
with centrally authorized products will be required to use the ESMP.
Early
Familiarity:
EMA encourages MAHs to familiarize themselves with the platform before the
mandatory deadline.
Data
Submission:
Until February 2, 2025, MAHs and National Competent Authorities (NCAs) can
submit data on supply, demand, and availability of both centrally and
nationally authorized medicines to the EMA's Executive Steering Group on
Shortages and Safety of Medicinal Products (MSSG).
Medicine
Monitoring:
The platform will be used for routine monitoring of all centrally
authorized medicines and may also be used for monitoring nationally
authorized medicines under special circumstances.
The European Medicines Agency (EMA) has announced the launch of a new platform designed to routinely monitor shortages of centrally authorized medicines.
Starting january 1, 2025, Pharmeca a.s. will provide an overview of issued decisions by the State Institute for Drug Control (SÚKL) and the Ministry of Health of the Czech Republic (MZ ČR) related to pricing and reimbursement on its website.
For marketing authorization holders, knowledge of SÚKL and MZ ČR decisions in the area of pricing and reimbursement is essential. The outcomes of individual proceedings shape decision-making practices that influence future decisions.
To address this need, Pharmeca a.s. now offers an interactive overview of decisions issued in the past five weeks.
Pharmeca a.s. provides services in the areas defined by this
legislative framework:
Act No. 48/1997 Coll.,on
Public Health Insurance and on Amendments to Some Related Acts, as
amended.
Implementing Regulation:
Decree
No. 376/2011 Coll.,
which implements certain provisions of the Public Health Insurance Act, as
amended,
Decree
No 384/2007 Coll., on
the list of reference groups, as amended,
Decree
No 385/2007 Coll., on
the list of active substances for adjunct or add-on therapy;
Decree
No. 63/2007 Coll.,
on the reimbursement of medicinal products and foods for special medical
purposes, as amended.
Decree
No. 618/2006 Coll.,
which issues framework agreements, as amended,
Decree
No. 134/1998 Coll.,
which issues a list of medical services with point values, as amended,
Decree
No. 527/2021 Coll.,
on determination of the amount of reimbursement of expenses for
professional acts and the method of determination of the amount of
compensation of expenses for professional consultations carried out by the
State Institute for Drug Control under the Public Health Insurance Act, as
amended,
Decree
on the determination of point values, the amount of payments for paid
services and regulatory restrictions - always issued for the current year,
Government
Regulation No. 307/2012
Coll., on local and temporal availability of health services, as amended.
Act No. 551/1991 Coll., on the
General Health Insurance Company of the Czech Republic, as amended.
Act No. 280/1992 Coll., on
departmental, branch, corporate and other insurance companies, as amended.
Act No. 592/1992 Coll., on
public health insurance premiums, as amended.
Implementing Regulation:
Decree
No. 351/2022 Coll.,
on the transmission of data on the consumption of medicinal products by
insured persons of the public health insurance when changing the health
insurance company, as amended
Price
Regulation of the Ministry of Health No. 4/2024/OLZP, on the
determination of a special distribution surcharge for medicinal products
released from the reserve stock system,
Price
Decision of the Ministry of Health No. 3/2024/OLZP, dated November 29,
2023, setting out lists of ATC groups with the relevant route of
administration, for which the ex-factory price of the medicinal product is
not subject to price regulation or maximum price regulation,
Price
Regulation of the Ministry of Health No. 2/2024/OLZP, dated November
29, 2023, on the price regulation of medicinal products and foods for
special medical purposes,
Price
Regulation of the Ministry of Health No. 11/2023/OLZP, dated October
25, 2023, on the determination of the distribution and dispensing
surcharge for medicinal products reimbursed under Section 32c of Act No.
48/1997 Coll.,
Price
Regulation No. 3/2022/OLZP, on the price regulation of individually
prepared medicinal products containing cannabis for medical use.
Price Regulations – Medical Devices:
Price
Regulation of the Ministry of Health No. 1/2024/OLZP, dated October
25, 2023, on the price regulation of medical devices and in vitro
diagnostic medical devices,
Price
Regulation of the Ministry of Health No. 2/2022/OLZP, dated January 7,
2022, amending Price Regulation No. 1/2019/CAU, dated May 22, 2019, on the
price regulation of medical devices,
Price
Decision 2/13-FAR, establishing a list of medical devices with
deregulated manufacturer prices.
Act No. 378/2007 Coll., on
Pharmaceuticals, as amended.
Implementing Regulation:
·
Decree No. 457/2023 Coll.,
establishing a list of human medicinal products exempt from the obligation of
the marketing authorization holder to ensure their supply after the announced
date of supply interruption or discontinuation, as amended.
Decree
No. 84/2008 Coll., on
good pharmaceutical practice, detailed conditions of handling
pharmaceuticals in pharmacies, healthcare facilities and other operators
and facilities supplying medicinal products, as amended,
Decree
No. 85/2008 Coll., which
lays down a list of active substances and excipients which may be used in
the preparation of medicinal products, as amended,
Decree
No 226/2008 Coll., on
good clinical practice and detailed conditions of clinical trials on
medicinal products, as amended,
Decree
No. 228/2008 Coll.,
on the marketing authorisation of medicinal products, as amended,
Decree
No. 229/2008 Coll.,
on the manufacture and distribution of pharmaceuticals, as amended,
Decree
No. 236/2015 Coll.,
on the determination of conditions for prescription, preparation,
distribution, dispense and use of individually prepared medicinal products
containing cannabis for medical use, as amended,
Decree
No. 329/2019 Coll.,
on prescribing medicinal products in the provision of health services, as
amended,
Decree
No. 463/2021 Coll.,
on the detailed conditions for conducting a clinical trial of medicinal
products for human use, as amended.
Act No 167/1998 Coll,
on addictive substances and
amending certain other acts, as amended
Implementing Regulation:
Decree
No. 53/2014 Coll.,
on forms under the Addictive Substances Act, as amended,
Decree
No. 123/2006 Coll., on evidence
and documentation of
addictive substances and preparations, as amended,
Decree
No. 243/2009 Coll., on
establishing a list of persons indicating their workplaces for their work
is not required permit to treatment of addictive substances and
preparations containing them, as amended,
Government
Regulation No. 463/2013 Coll.,
on lists of addictive substances, as amended,
Decree
No. 235/2022 Coll.,
on the cultivation and processing of cannabis plants for medicinal use, as
amended,
Decree
No 53/2022 Coll.,
on the determination of the amount of compensation of expenses for
professional acts performed by the State Institute for Drug Control
pursuant to the Act on Addictive Substances, as amended.
Act No. 375/2022 Coll., on
medical devices and in vitro diagnostic medical devices, as
amended.
Implementing Regulation:
Decree
No 377/2022 Coll.,
on the implementation of certain provisions of the Act on medical devices
and in vitro diagnostic medical devices, as amended,
·
Decree No. 378/2022 Coll., on the
template of the inspector's identification card of the State Institute for Drug
Control under the Act on Medical Devices and In Vitro Diagnostic Medical
Devices, as amended.
Decree
No 379/2022 Coll.,
on the determination of the amount of compensationof
expenses for professional acts performed by the State Institute for Drug
Control pursuant to the Act on Medical Devices and In Vitro Diagnostic
Medical Devices, as amended.
Act No 376/2022 Coll.
amending certain acts in connection with the adoption of the Act on medical
devices and in vitro diagnostic medical devices, as amended.
Act No.268/2014 Coll.,on
medical devices and amending Act No. 634/2004 Coll., on administrative
fees, as amended.
Act No. 89/2021 Coll., on
medical devices and amending Act No. 378/2007 Coll., on pharmaceuticals and on
amendments to certain related acts (Act on pharmaceuticals), as amended.
Implementing Regulation:
·
Notification of the Ministry of Health No.
54/2022 Coll., on the commissioning of the central repository of electronic
vouchers.
Act No. 22/1997 Coll., on
Technical Requirements for Products and amendments to some related
acts, as amended.
Act No. 90/2016 Coll., on the
assessment of the conformity of specified products when they are placed on the
market, as amended.
Act No. 372/2011 Coll., on
health services and conditions for their provision (the Health
Services Act), as amended.
Decree No. 373/2016 Coll., on the
transfer of data to the National Health Information System, as amended.
Act No. 40/1995 Coll., on the
regulation of advertising and on amending and supplementing Act No. 468/1991
Coll., on the operation of radio and television broadcasting, as
amended.
Act No 242/2022 Coll., on the
services of video sharing platforms and amending certain related acts (Act
on the services of video sharing platforms), as amended.
Act No. 387/2024
Coll., on General Product Safety and Amendments to Certain Related Acts, as
amended.
Act No. 500/2004 Coll.,
Administrative Code, as amended.
The European Medicines Agency (EMA) has
announced the launch of a new platform designed to routinely monitor shortages
of centrally authorized medicines. This platform is a direct result of Regulation
(EU) 2022/123, which aims to improve preparedness for and mitigation of
medicine shortages across EU member states.
Key Points:
Platform
Availability:
The European Shortages Monitoring Platform (ESMP) is now accessible
online.
Mandatory
Usage:
Starting from February 2, 2025, all Marketing Authorization Holders (MAHs)
with centrally authorized products will be required to use the ESMP.
Early
Familiarity:
EMA encourages MAHs to familiarize themselves with the platform before the
mandatory deadline.
Data
Submission:
Until February 2, 2025, MAHs and National Competent Authorities (NCAs) can
submit data on supply, demand, and availability of both centrally and
nationally authorized medicines to the EMA's Executive Steering Group on
Shortages and Safety of Medicinal Products (MSSG).
Medicine
Monitoring:
The platform will be used for routine monitoring of all centrally
authorized medicines and may also be used for monitoring nationally
authorized medicines under special circumstances.
The European Medicines Agency (EMA) has announced the launch of a new platform designed to routinely monitor shortages of centrally authorized medicines.
From January 1, 2025, Slovakia will include medicines
and medical devices in the reduced VAT rate of 5%. This move is part of a
broader tax reform aimed at improving access to essential goods for the
population while reducing the financial burden on patients. The changes are
likely a response to the European Commission’s assessment of public finances
and an effort to reduce the budget deficit.
This change contrasts with developments in the Czech
Republic, where, as of January 1, 2024, the VAT rate on medicines increased
from the original 10% to 12%, as we mentioned in our previous article Changes
in VAT Rate for Pharmaceuticals.
What Impact Will the Reduced VAT Rate Have in
Slovakia?
The lower VAT rate is expected to significantly reduce
costs for patients in Slovakia for medical devices and medicines, both in
outpatient and hospital care. The direct financial impact on individuals will
depend on specific measures and pricing policies. For comparison, Slovakia’s
VAT on medicines has dropped from 10% to 5%, which could lead to a more
noticeable impact on final prices than in the Czech Republic, where the rate
was increased.
Impact on External Price Referencing for Medicines
The reduced VAT rate in Slovakia, however, will not
affect the external price referencing (EPR) of medicines, used by some
countries to set maximum prices and reimbursement levels in their markets. The
VAT change does not reflect in EPR because the reference price is almost
universally based on the manufacturer’s price.
At the same time, this change offers an opportunity to
compare tax policies across the EU, where VAT rates on medicines and medical
devices vary significantly. For example, according to data
from EFPIA (European Federation of Pharmaceutical Industries and
Associations) as of January 1, 2024, Spain applies a 4% VAT rate on medicines,
while Denmark has a standard rate of 25%.
Stay tuned to our website for more updates on
legislative changes and their impact on healthcare in the EU.
From January 1, 2025, Slovakia will introduce a significant change in its tax policy. This step is part of a broader tax reform aimed at improving access to essential goods for the population while...