New moves have been made to further reduce the cost of generic medicines, according to Minister for Primary Care Alex White.

He said following a recent agreement with generic manufacturers, from April 1, the maximum price the HSE will pay for generic medicines under its drug schemes will be 40% of the price of a branded equivalent.

This, according to the Government, will remove the anomaly whereby some generic drugs were almost as expensive as their branded equivalents, despite the fact that they are cheaper to produce.

The Minister said this will result in the price differential between the branded drug and most generic equivalents increasing from the current 5% to approximately 20%.

Since last year, a system of generic substitution and reference pricing has been in operation.

Under new generic substitution rules, pharmacists are for the first time allowed substitute a branded drug on a doctor's prescription for a generic equivalent, which will usually be cheaper.

Under reference pricing, the HSE sets a common reimbursement price for medicines, and this is the maximum price the HSE will reimburse the pharmacist, regardless of the individual drug's price. If a drug comes in above the reference price, any excess above this price has to be met by the patient.

The Department of Health says if you are being charged prices for drugs which exceed the set HSE reimbursement price (listed on the HSE website) plus a dispensing fee, you should discuss the differential with the pharmacist to ensure you get the best possible price for the medicine concerned.

Reference pricing for different drugs is being introduced on a phased basis.

In recent months, it has been introduced for a number of cholesterol-lowering drugs, and this has cut their costs by between 40% and 70%.

Reference pricing has also recently been extended to two drugs for stomach conditions, lansoprazole and omeprazole.

According to Minister White, from April 1, reference pricing is due to be extended to a further four drugs- lercanidipine (blood pressure); pantoprazole (stomach conditions); ramipril (heart conditions) and quetiapine (schizophrenia/bipolar disorder).

Mr White, in a Dail response to Independent TD for Waterford John Halligan, said reference pricing would eventually ensure that generic prices in Ireland will fall towards European norms.

The Minister said he had asked the Pharmaceutical Society of Ireland to consider how to provide greater price transparency in retail pharmacies