The Development of Prices for Medicines

The aim of the project is to form indices describing the development of the prices of medicines and to assess their usability in monitoring changes in the prices of medicines. Pharmaceuticals are a typical example of commodities whose characteristics, such as quality, change significantly with the introduction of new products to the market. The market environment for medicines already on the market also changes with competition and the product’s life cycle. This makes it challenging to monitor the price development of medicines over time, and it is possible that the data currently available on the long-term price development of medicines are partly inaccurate.

The project will extract data that includes data on the prices and purchases of reimbursable medicines from 2010 onwards. The data will be used to form various price indices that examine, for example, the effects of the base year chosen for the index and of the different weightings on describing price development. The appropriate indices are used to separately examine the price development of all reimbursable medicines and the medicines included in the reference price system, as well as the price development of medicines by reimbursement category. Other factors affecting the prices of medicines may also be examined.

The prices of medicines are a key factor in the costs of medicines and Kela’s reimbursement costs, so up-to-date and as high-quality information as possible on the price development of medicines is of key importance. High-quality information on the development of prices helps to monitor the functionality of the medicine reimbursement system. The information can also be used to monitor the effects of system changes and to evaluate future system changes in advance.

Researchers

• Hanna Koskinen, Leading Researcher
• Pekka Heino
• Klaudia Kaustiala
• Hanna Rättö

Project Implementation Period

1.1.2023–31.5.2025