Legal | Tax | Compliance
Legal | Tax | Compliance
Aiming to reduce healthcare costs, uniform distribution margins, effective per 1 July 2024, should enhance the sale of cheaper generic medicines.
In December last year, the Federal Council decided to revise the distribution margin calculation model for pharmaceuticals and introduce uniform margins for pharmaceuticals with identical active ingredients. This change, effective July 1, 2024, aims to increase the use of cost-effective generics and reduce healthcare costs. The retail price of a pharmaceutical will now comprise the manufacturing price, the adjusted distribution margin, and VAT. Distribution margins will be uniform within groups of pharmaceuticals with the same active ingredients, calculated based on the average manufacturing price of generics or biosimilars. The model also reduces price-based surcharges to two classes with surcharges of 6% or 0%, and adjusts package-based surcharges to three classes increasing the package-based surcharges of lower priced pharmaceuticals to mitigate incentives for selling more expensive pharmaceuticals. The amendments are expected to make 36% of pharmaceuticals more expensive and 64% cheaper.
