If pharmacists and their businesses are "price gouging" and taking the public for a ride, and profit opportunity is so high, then why is there not an ever increasing stream of more pharmacies?
There is. There has been an expansion of the numbers of outlets, as it is so profitable.
Basic economics dictates that if demand increases while supply stays the same, then prices rise. In the case of pharmacies, the state controls its numbers directly through restricting licences and applying a huge cost to the actual licence.
I don't know that the State charge for the right to have a HSE pharmacy contract? They issue the contracts, yes, but I don't think the contracts can be traded, unlike pub licences.
Pharmacists are also limited to what suppliers they use, i.e. they cannot go to a cheaper Spanish supplier.
Yes, fair enough, their wholesale cost is fixed by negotiations between the State and the suppliers.
Note that the wholesale mark-up used to be 17.65%, and that the wholesalers passed on maybe half of this mark-up as discounts to the pharmacy.
(NB: of the 3 wholesalers, some own pharmacies, some are owned by pharmacies)
Recently, the HSE decided to pay a 10% wholesale mark-up, which is still plenty, IMO.
You want to blame someone for high pharmacy prices? Blame government interference.
The new deal offers pharmacies a 5 euro fee per prescription, for the first 20,000 transactions. This is a big increase on the old fees.
In return, the DPS retail mark-up on the wholesale cost was reduced from 50% to 20%, which is reasonable, IMO.
Yet some still use the old 50% mark-up.
Here's an example of where some of your taxes go:
Example couple, both retired, one aged 70.
Public sector pensioner = 700 pw typical pension
OACP pensioner = 230 pw
They did not suffer any cut in pension.
- They both get medical cards, even though they earn approx 1000 pw.
- They both get free travel.
- They will get the Household Benefit Package (free TV licence, subsidised elec and telephone)
They do not pay the Health levy or Income levy
They pay very little tax.
So?Some pharmacists have also taken TWO pay cuts.
Prices of drugs have also fallen TWICE already this year (Feb and Oct).
Some pharmacists have also taken TWO pay cuts.
So do I.I actually admire them for their protest!!
So do I.
I also admire cement truck guy, despite what the underlying circumstances for his protest might be (failed developer) At least he did something and made international news.
I don't think it's any good me sitting here letting the government do this. I'm as meek as a lamb - meanwhile the government walks all over me.
Do you really begrudge pensioners having a decent living ?
Do you really begrudge pensioners having a decent living ?
I actually admire them for their protest!!!
Perhaps the Benefits package should be means tested.
I had in mind your average pensioner, who contributed to a pension scheme, as well as PRSI.
I don't think that one size fits all.
It's the same with the Childrens Allowance etc. I see no reason why this shouldn't be means tested either.
So?
What's your point exactly?
I'm still far better off getting medication abroad and hoping it's not confiscated by customs.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?