Peculiarities of external reference pricing policy in European countries

High prices of medicines contribute to the growth of healthcare costs, which reduces the financial access of the population to them. One of the reasons for the high cost of medicines in Georgia is the significant deficiencies in the regulation of the pharmaceutical sector, which results in excessive consumption of medicines and unregulated prices. To regulate the prices of medicines and, accordingly, to increase financial access to them, an external reference pricing policy has been implemented in Georgia since 2022. As a result of the implementation of the external reference pricing method in Georgia, access to medicines has increased and high out-of-pocket payments have been relatively reduced. When developing an effective pharmaceutical policy, the government should take into account the accumulated experience in the world. Along with the external reference pricing mechanism, it is important to gradually introduce different pricing techniques.