IMPACT OF REFERENCE PRICING POLICY ON THE PHARMACEUTICAL SECTOR

Abstract

The reference pricing reform was enacted in Georgia in 2023, affecting up to 6,000 medicines within one year. To assess the impact of this policy, a survey was conducted among pharmacists, doctors, and consumers. The study results indicate that regulating medicine prices is most effective when combining different methods tailored to the country's specific context. In the long term, it is recommended to implement full universal healthcare coverage. It is crucial to note that the risk associated with policy implementation is higher in countries lacking robust legal frameworks that support and strengthen the healthcare system. Developing and utilizing transparent health information systems are essential for the effective implementation, monitoring, and evaluation of pharmaceutical pricing and procurement policies. Although reference pricing can improve healthcare cost management and access to medicines, policymakers must carefully manage these schemes to prevent unintended consequences on pharmaceutical innovation and market dynamics.