Denmark extends limit on medicine prices in response to inflation

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Denmark extends limit on medicine prices in response to inflation
Denmark is to continue a limit on the price of subsidised medicines at pharmacies. Illustration photo: Mads Claus Rasmussen/Ritzau Scanpix

Denmark’s health ministry has agreed with regional health boards and the representative body for the country’s pharmaceutical industry to limit the price on medicines for the next two years.


The agreement means an upper limit will be placed on the price paid by users of the health system subsidy-eligible prescription medicine, as well as for medicines used at hospitals.

The deal is a two-year extension of an existing arrangement. Its purpose is to ensure medicine prices are predictable as well as to contain rising prices due to inflation.


Specifically, the hospital medicine aspect of the agreement means that medicines at hospitals will become 2.2 percent cheaper from January 1st next year. The limit will run until the end of 2024.

For subsidy-eligible prescriptions purchased at pharmacies, prices are now frozen until September 30th 2025.

“In a time with high increases in consumer prices, I’m very pleased that we are keeping the cost of pharmacy medicines stable for the next two years and even reducing the list prices of hospital medicine,” Health Minister Sophie Løhde said in a health ministry statement.

Hospital medicine or sygehusmedicin in Danish is medicine purchased by hospitals for use in hospital treatments of both inpatients and outpatients.

Medicines that are eligible for subsidies must be purchased at pharmacies and prescribed by a doctor or dentist.

Denmark’s public health system provides for subsidies for most types of medicine, which means you are likely to be eligible for the subsidy if you have a Danish public health insurance card (sygesikringskort, the yellow card issued with your CPR [personal registration] number, name and address and GP’s details).

READ ALSO: What happens if you lose your Danish yellow health insurance card?

The Ministry of Health, Regional health boards and the Danish Association of the Pharmaceutical Industry (Lægemiddelindustriforeningen, Lif) have had an arrangement in place to control prices of pharmacy medicines for end users dating back to 2006.

In the past, agreements have adjusted the limits upwards in line with general price and wage trends. However, the last three agreements, since 2014, have maintained existing prices.


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