Medicines Policy In Moldova - Health Action International

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This presentation received funding under an operating grant from the European Union’s Health Programme (2014–2020) Medicines Policy in Moldova Workshop in Chisinau, Moldova 12 December 2016

Health Action International A non-for-profit global network Established in 1981 Comprising public health NGOs, healthcare professionals, academics and consumers Based in Amsterdam & Brussels Working to increase access to essential medicines and improve their rational use through research and evidence-based advocacy HAI Europe funding sources: Executive Agency for Health and Consumers (EAHC); Open Society Foundations (OSF); Camino Foundation

Welcome from: Tessel Mellema Health Action International, the Netherlands Stela Bivol & Rita Seicas PAS Centre for Health Policy & Studies Katrina Perehudoff Global Health Law Groningen Research Centre & University Medical Centre Groningen, the Netherlands

PART 1 Who has access to medicines?

Right to health in Moldova Constitution of the Republic of Moldova Article 36: Right to health protection 1. The right to health protection shall be guaranteed. 2. The minimum health insurance provided by the State shall be free. Art 4: Human rights & freedoms Standards in international law also apply and can be enforced in Moldova

Right to health in international law Right to health Right to be healthy Government has primary responsibility to protect and promote health Includes immediate provision of essential medicines as defined by WHO Non-discrimination and equality Sources of international law: Art 12. International Covenant of Economic, Social & Cultural Rights & General Comment No. 14

Making fair choices in providing access to healthcare Recommendations from highlevel group to WHO: Cover everyone with highpriority services. Eliminate out-of-pocket payments. Pay in advance for care.

Making fair choices in providing access to healthcare Recommendations from highlevel group to WHO: Fair payment is based on ability to pay, not on how much one needs the medicine.

Law on Compulsory Health Insurance no. 1585 1998 - essential package of emergency & primary care - in-patient medicines & services provided without charge - selected out-patient medicines are reimbursed 2009 - expanded coverage of low-income families 2010 - citizens of Moldova, regardless of their income level, are provided with equal opportunities for care

What are the vulnerable groups in Moldova? Who misses out on health insurance?

Key points for universal access Essential medicines are part of everyone's right to health Law in Moldova covers most people with health insurance Medicines reimbursement for certain disease groups Certain vulnerable groups do not have access to medicines

PART 2 Which medicines are reimbursed? Which medicines do patients have access to?

Which medicines are accessible? The selection of medicines is limited to: Medicines that are developed Medicines that are marketed in Moldova (Often) Medicines that are reimbursed in Moldova

1. Drug development Mismatch between public health needs & research priorities Rezistenta la antiobiotice Diabet Alzheimer Cancer Tuberculoza Alcool Artroza Cardiovasc. HIV/SIDA AVC Tutun esearch-diverges-from-who-goals-a-1025572.html

1. Drug development For-profit research & development selects the potential best sellers, not always the most needed drugs Examples: Child-sized medicines for tuberculosis & HIV Shorter treatments for tuberculosis Diagnostics for bacterial vs. viral infections in respiratory tract Essential Medicines for Universal Health Coverage. Wirtz et al. Lancet (2016)

2. Marketing Medicines All medicines Registered Medicines in Moldova Not every medicine on the market is important for patients

2. Medicines marketed in Moldova Analysis of 1345 new market approvals for medicines in Europe (2000-2013) Review Prescrire 35 (376):132-136, 2015.

2. Medicines marketed in Moldova All medicines Registered Medicines in Moldova Newer medicines are not always better. Some essential medicines are not marketed.

3. Selecting medicines to reimburse All medicines Essential medicines are those that satisfy the priority health care needs of the population. Registered medicines National list of essential medicines WHO Model List of Essential Medicines S S http://www.who.int/medicines/publications/essenti almedicines/EML2015 8-May-15.pdf National list of essential medicines http://amed.md/sites/default/files/Medicamente/M ed-te%20esentiale%202011.pdf

3. Selecting medicines to reimburse What are essential medicines? Essential medicines are those that satisfy the priority health care needs of the population. Selection criteria Essential medicines are selected with due regard to disease prevalence, evidence on efficacy and safety, and comparative cost-effectiveness. (Report to WHO Executive Board, January 2002)

3. Selecting medicines to reimburse Purpose: Essential medicines are intended to be available within the context of functioning health systems at all times, in adequate amounts, in the appropriate dosage forms, with assured quality, and at a price the individual and the community can afford. Benefits of essential medicines: A limited range of carefully selected essential medicines leads to better health care, better drug management, and lower costs. (WHO Expert Committee Report, April 2002)

3. Selecting medicines to reimburse Implementation It is intended to be flexible and adaptable to many different situations; exactly which medicines are regarded as essential remains a national responsibility. If a medicine is considered essential, then it should become affordable for all. (WHO Expert Committee Report, April 2002)

Diabetes in Kyrgyzstan Kyrgyzstan (2009) Government Budget for Insulin Patented analogue insulins 13% of patients Generic insulin 26% of patients Abdraimova A et al. Report by International Insulin Foundation, 2009.

3. Selecting medicines to reimburse All medicines Reimbursement list List of medicines that the government subsidizes Registered medicines National list of essential medicines S Reimbursement list Ideal situation S

3. Selecting medicines to reimburse All medicines Reimbursement list List of medicines that the government subsidizes Registered medicines National list of essential medicines S Reimbursement list Actual situation S

Deciding which medicines to reimburse: Rank medicines in order of priority Medicines with most health benefits at low cost Medicines with fewer health benefits at higher cost

Rank medicines in order of priority Ranking needs to: - Consider the needs of the worst-off patients - Involve patients & consumers in setting the criteria - Be based on objective criteria and evidence - Be used in a way that is consistent and transparent

Hepatitis C in Moldova Est. 120,000 people with chronic Hepatitis C in Moldova Essential medicines list or government subsidy: pegylated interferon and ribavirin Many adverse effects Offers treatment but not cure Sofosbuvir (Sovaldi) marketed in 2013 Significant health gains Internationally: On WHO List of Essential Medicines (2015) Sofosbuvir in Moldova: X X Essential medicines list (2011) Reimbursed medicine (2016)

Key points when selecting medicines Use the essential medicines concept to select medicines An essential medicine should become available & affordable for everyone who needs it Select & reimburse medicines based on criteria and evidence Evidence-base should be publicly available Focus on best-buys

PART 3 What do medicines cost the patient?

Medicines prices: Not the same everywhere Sofosbuvir for Hepatitis C EUROPE: Price is 25,000 - 56,000 for 12 week course High price due to patent protection Lower price thanks to ‘voluntary license’ INDIA: Price is 161 / bottle Private Patents & Public Health. ‘t Hoen E. (2016)

Medicines prices: Not the same everywhere Sofosbuvir for Hepatitis C EUROPE: Price is 25,000 - 56,000 for 12 week course High price due to patent protection Lower price thanks to ‘voluntary license’ INDIA: Price is 161 / bottle Private Patents & Public Health. ‘t Hoen E. (2016)

Medicines prices: Not linked to cost of production Sofosbuvir for Hepatitis C EUROPE: Price is 25,000 - 56,000 for 12 week course High price due to patent protection Lower price thanks to ‘voluntary license’ INDIA: Price is 161 / bottle Production costs 68 - 136 / treatment Private Patents & Public Health. ‘t Hoen E. (2016)

Medicines prices: Not linked to cost of research & development How much does it cost to research & develop a new medicines? Pharmaceutical industry: 1 200 000 000 Non-profit drug developers: Drugs for Neglected Diseases initiative 150 000 000 High price due to patent protection Lower price thanks to ‘voluntary license’ Private Patents & Public Health. ‘t Hoen E. (2016)

What determines the costs for patients?

What determines the costs for patients? Price of the medicine Cost patients pay 65% Government funding 35%

How to reduce costs for patients? Price of the medicine Patient spending

How to reduce costs for patients? Price of the medicine Patient spending

How to reduce costs for patients? Price of the medicine Patient spending

How to reduce costs for patients? Price of the medicine Patient spending

How to reduce costs for patients? Price of the medicine Patient spending

How to reduce costs for patients? Price of the medicine Patient spending

How to reduce costs for patients? Price of the medicine Patient receives medicine

How to reduce costs for patients? Price of the medicine 1. Decrease medicines prices Patient savings

How to reduce costs for patients? Price of the medicine 1. Decrease medicines prices Patient savings

How to reduce costs for patients? Price of the medicine 1. Decrease medicines prices 2. Increase government funding Patient savings

How to reduce costs for patients? Price of the medicine 1. Decrease medicines prices 2. Increase government funding Patient savings

How to reduce costs for patients? Price of the medicine 1. Decrease medicines prices 2. Increase government funding Patient savings

How to reduce costs for patients? 1. Decrease medicines prices 2. Increase government funding Price of the medicine – Government funding Cost for patients -

Key questions 1. Is the price of medicines too high? Is the government doing enough to keep prices affordable?

Factors influencing the price of medicines Mark up & distribution costs Taxes Policies to promote generics PRICE Level of competition National patent law National policies Price regulation policy Procurement strategies

Ways to lower the price of medicines Compare prices with other countries or therapeutic groups (Reference Pricing) Promote the use of generics Many other options

Reference Pricing External – compare with prices in other countries Internal – compare with other treatments in therapeutic class

Reference Pricing Goal: An objective measure to compare and set fair prices

Reference Pricing Goal: An objective measure to compare and set fair prices Real challenges: Actual prices are not known ?

Reference Pricing Goal: An objective measure to compare and set fair prices Real challenges: Actual prices are not known Methods for choosing comparators are not perfect

Reference Pricing Goal: An objective measure to compare and set fair prices Real challenges: Actual prices are not known Methods for choosing comparators are not perfect Increase in generic price

National Medicines Policy Medicines Selection Which medicines are essential? Affordability & Financing How should medicines prices be set? How should generics be promoted? Supply systems Will medicines be locally produced or imported? Regulation How will the quality of medicines be tested? Appropriate use Should medicines be advertised to doctors? To patients? To the public? Research o Which new medicines should be developed? How to decide?

Key questions 1. Is the price of medicines too high? Is the government doing enough to keep prices affordable? 2. Is the government spending enough to afford a basic package of essential medicines for everyone?

Affording basic essential medicines Amount needed to buy basic package (2016 Lancet Commission) US 13-25/capita Moldova government patient spending (2010) US 63/capita High out-of-pocket & informal payments How much funding is from the government? Is money spent efficiently? Essential Medicines for Universal Health Coverage. Wirtz et al. Lancet (2016)

What about expensive medicines for noncommunicable diseases? Diabetes: Insulin Cardiovascular disease: Lower cholesterol Cancer: Oncological drugs Herceptin (breast cancer) 120,000 in UK

Key questions 1. Is the price of medicines too high? Is the government doing enough to keep prices affordable? 2. Is the government spending enough to afford a basic package of essential medicines for everyone? 3. Are the costs for patients too high? Are patients sufficiently protected from catastrophic spending?

Key points to bring down medicines costs National medicines policy can establish national priorities for : Medicines pricing policies Promotion of generics Using TRIPs flexibilities Sufficient and efficient government funding through compulsory health insurance Monitoring prices and affordability to make sure patients are sufficiently protected from catastrophic spending

Thank you for your attention Katrina Perehudoff Katrina.perehudoff@gmail.com Tessel Mellema tessel@haiweb.org www.haiweb.org

What are essential medicines? Essential medicines are those that satisfy the priority health care needs of the population. Selection criteria Essential medicines are selected with due regard to disease prevalence, evidence on efficacy and safety, and comparative cost-effectiveness. (Report to WHO Executive Board, January 2002)

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