A significant reduction in household drug costs has emerged in Georgia following the implementation of a new external reference pricing policy in 2023. This policy shift marks a pivotal moment for Georgian households, promising considerable financial relief in accessing essential medications.
Policy Interventions Introduced
Between 2017 and 2023, Georgia introduced three key pharmaceutical policies aimed at easing the financial burden of medicine costs on its population. The initiatives included a 2017 drug reimbursement plan, the 2022 introduction of parallel imports from Turkey, and the 2023 adoption of external reference pricing. These measures were designed to regulate drug prices and enhance accessibility for low-income families.
Impact on Household Expenditures
Analysis of data from over 88,000 Georgian households revealed that the external reference pricing policy was the most effective in reducing monthly drug expenditures. Specifically, there was an immediate decrease of 6.96 GEL per household, followed by a consistent monthly decline of 1.28 GEL. This translated to a 29% reduction, saving families approximately 43.3 million GEL in 2023 alone.
- External reference pricing directly lowered monthly drug costs, providing immediate financial relief.
- The parallel import policy initially decreased costs but later resulted in an increase, highlighting the complexity of market dynamics.
- Continuous monitoring and additional measures are essential to maintain and enhance the benefits of these policies.
The external reference pricing policy stands out as a highly effective tool in controlling pharmaceutical expenses. Its success demonstrates the potential for similar strategies to be employed in other low- and middle-income countries facing comparable challenges. However, the mixed results from the parallel import policy indicate that a multifaceted approach is necessary to sustain long-term benefits and ensure equitable access to medicines.
Future policy efforts should focus on stabilizing drug prices while expanding access to essential medications. Implementing complementary measures, such as enhancing domestic production and fostering international collaborations, could further alleviate the financial strain on Georgian households. Additionally, ongoing assessment and adaptation of policies will be crucial to respond to the evolving healthcare needs of the population.
By prioritizing sustainable and effective pharmaceutical policies, Georgia can continue to make strides towards Universal Health Coverage and achieving the Sustainable Development Goals. The lessons learned from recent policy interventions offer valuable insights into managing healthcare expenditures and improving the overall well-being of its citizens.
This article has been prepared with the assistance of AI and reviewed by an editor. For more details, please refer to our Terms and Conditions. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author.
