Cypriot pharmacists seek renegotiation with health insurance organization over rising costs

Private pharmacies in Cyprus are conducting a sustainability study as they prepare to initiate new negotiations with the Health Insurance Organisation (HIO) regarding the General Healthcare System (GHS). Ploutarchos Georgiades, head of the Pancyprian Pharmaceutical Association, reported that prescriptions for expensive medications have increased by over 50 percent, creating significant financial pressure on pharmacies that must maintain large and costly inventories to ensure continuous patient service.

Beyond rising drug costs, pharmacists are highlighting systemic issues with the reimbursement of consumables and medical equipment. Georgiades noted that current reimbursement rates are disproportionately low compared to acquisition costs, citing instances where pharmacies are reimbursed only 1.60 euros for items costing up to 1,000 euros. The current reimbursement model, which was implemented as an emergency measure during the pandemic, is now being criticized as inadequate for high-value supplies.

The association intends to present the data from their sustainability study to the HIO to support their demands for structural changes in payment policies. This push aims to address the liquidity and operational burdens faced by pharmacies while ensuring the long-term viability of their participation in the national health framework.