In 16 countries the controlled price type is the ex-factory price (manufacturer price) (e.g. Czech Republic, Hungary, Austria, Germany, France), 9 countries (e.g. Poland, Netherlands, Finnland, Sweden) fix pharmaceutical prices at the pharmacy purchasing price (wholesale) level, whereas 2 countries (Slovakia and Luxembourg) determine the pharmacy retail price. At distribution level, 21 countries have statutory wholesale mark-ups, either in form of a linear mark-up or a regressive scheme (e.g. Slovakia). Cyprus (for imported pharmaceuticals), Denmark, Finland, Netherlands, Norway and Sweden apply no statutory wholesale mark-up, and since the controlled price type is the pharmacy purchasing price, the ex-factory price is an outcome of negotiations between the manufacturer and the wholesaler. Pharmacy margins are regulated in all 27 countries. Usually, they obtain the form of a regressive scheme (e.g. Slovakia) or a linear mark-up. Pharmacy remuneration occurs via a fixed fee per prescription in the Netherlands and in Germany (together with a linear mark-up). Pharmacists in Slovenia and the UK receive a fee-for-service remuneration. In several countries (e.g. Slovakia, Czech Republic, Hungary, Austria), statutory wholesale and pharmacy mark-ups cover all pharmaceuticals. A few countries apply the distribution regulation only to reimbursable pharmaceuticals (e.g. Poland, France, Italy) or to prescription-only medicines (e.g. Bulgaria, Portugal).
The product-specific approach (i.e. eligibility for drug reimbursement is determined on product level) is applied in 18 countries (e.g. Slovakia, Czech Republic, Germany, Greece, Italy, Slovenia, UK). Further eligibility criteria can be the disease (e.g. in the Baltic States) and the population groups concerned (e.g. Ireland, Turkey). In Denmark and Sweden, reimbursement coverage increases with rising pharmaceutical consumption (i.e. pharmaceutical expenditure within a year). This implies that in the beginning the patients have to pay 100% of their medication themselves, but after they have passed respective spending thresholds their medication is reimbursed at rising rates. A reference price (base price for reimbursement) system is in place in 18 countries. Ten of these countries (e.g. Denmark, Italy, Portugal) base their reference groups (i.e. groups of interchangeable pharmaceuticals) on substance level according to the Anatomical Therapeutic Chemical (ATC) classification, whereas 7 other countries (Slovakia, Czech Republic, Hungary, Poland, Latvia, Germany, the Netherlands) also consider therapeutically similar pharmaceuticals as interchangable.
Nearly all countries have introduced mechanisms to protect vulnerable groups from excessive out-of pocket payments. Specific population groups are granted a 100% reimbursement (e.g. in Hungary, Portugal), a higher reimbursement rate than the standard one (e.g. in Belgium, Estonia) or exemptions from the prescription fee (e.g. in Austria). The total amount of co-payment may be limited (e.g. a maximum co-payment per prescription like in Belgium, or annual ceilings of private expenses on pharmaceuticals and/or on health care in the Czech Republic, Germany and Luxembourg).
In most countries the value-added tax (VAT) ratefor pharmaceuticals is lower than the standard VAT rate (incl. Slovakia). Exceptions are Austria, Bulgaria, Denmark, Germany and Norway, where the VAT rate on pharmaceuticals is the same as for other goods. A few countries have split VAT rates, with no VAT or a lower rate for a specific group of pharmaceuticals (e.g., for prescription-only medicines in Sweden or NHS pharmaceuticals in the UK).