Abu Meri's Recipes: The Cheapest Medicines in Latvia Have Already Increased by 34%! 0 10

List of Achievements

"The set goals have been achieved," declares the ministry. This is reflected in the following:

• Reduced price differences for markups and prescription medicines between the Baltic countries;

• A unified pricing mechanism for reimbursable and non-reimbursable medicines has been applied;

• A fixed markup for medicine packaging has been introduced;

• Costs for acquiring more expensive medicines have been reduced by 15-20%;

• The distribution of markups between large trading enterprises and pharmacies has been changed in favor of pharmacies;

• The principle of forming a fee for pharmaceutical service has been introduced;

• Accessibility of information on prescribing and using medicines has been improved;

• Support for sole pharmacies in localities has been ensured;

• The reimbursement amount for reimbursable prescription medicines has been increased from 50% to 75%.

Currently, according to medical authorities, there are 3,635 prescription medicines with a declared manufacturer price in the Latvian Medicines Register. Comparing those from February 2, 2026, and December 31, 2024, it is evident that for 3,285 medicines, or 90% of all prescription drugs, the pharmacy price has decreased; for 344 medicines, or 9.5%, it has increased; and for 6, it has remained unchanged.

However, the majority of medicines with increased prices are those with pharmacy prices below 5 euros. In this price group, the cost of prescription medicines has increased on average by 0.50 euros (excluding VAT), or by 21%. If we consider only reimbursable medications under 5 euros, the price increase has reached as high as 34%!

How Much Oil is in a Pill?

At the same time, when next year comes to tally the "successes" for 2026, the effect of the war in the oil region will surely influence prices. The cost of medicines is indirectly but significantly dependent on oil prices, especially in the long term or during sharp fluctuations in the raw materials market. The relationship is realized through several key economic mechanisms:

• Raw material costs (petrochemicals): many active pharmaceutical ingredients (APIs) and excipients are produced based on oil processing products. Price increases raise raw material costs for pharmaceutical manufacturers.

• Logistics and packaging of medicines: plastic blisters, bottles, and transportation of finished products depend on oil and petroleum product prices (fuel for trucks, planes). Rising oil prices automatically increase transportation costs.

As for H. Abu Meri, he has his innovations ahead: "By July 1, 2027, assess the need to revise the application of the pharmacist service fee in accordance with the funding provided from the state budget, considering it in each case of dispensing prescription medicines"... As they say, "any whim for our money!"