Pharmaceutical policy in the Netherlands: from price regulation towards managed competition.

PURPOSE

To analyse the development of pharmaceutical policy in the Dutch market for outpatient prescription drugs since the early 1990s.

METHODOLOGY

A literature review and document analysis is performed to examine the effects of pharmaceutical policy on the performance of the Dutch market for outpatient prescription drugs since the early 1990s.

FINDINGS

Government efforts to control prices of pharmaceuticals were effective in constraining prices of in-patent drugs, but had an opposite effect on the prices of generic drugs. The gradual transition towards managed competition--that particularly gained momentum after the introduction of the new universal health insurance scheme in 2006--appears to be more effective in constraining prices of generic drugs than earlier government efforts to control these prices.

ORIGINALITY

Comparative analysis of the impact of price regulation and managed competition on generic drug prices in the Netherlands.

IMPLICATIONS

Implications of the changing role of health insurers are discussed for the future market for prescription drugs and role of pharmacies in the Netherlands.