Minister for Health Mary Harney has set up an independent body to recommend a new fee to be paid to pharmacists for dispensing drugs under the medical card and other community drug schemes.
The three-member body, which will be chaired by former IDA chief Sean Dorgan, will report by the end of May.
Its recommended fee will be backdated to 1 March. On average, the current dispensing fee for pharmacists is €3.27.
The body will also price a new pharmacy contract that is to be developed under the auspices of a facilitator agreed by the Health Service Executive and the Irish Pharmaceutical Union.
Meanwhile, the HSE is to proceed with its plan to reduce the amount it reimburses pharmacists for the wholesale mark-up of drugs from almost 18% to 8% from the beginning of March.
