The idea to have people pay for state-subsidised medicines and then apply for a refund had been suggested to government for the past two decades, the Chamber of Small and Medium Enterprises - GRTU said.

The chamber said the government was dragging its feet on the matter and was delaying discussions on a system that could make medicine distribution more cost-effective and potentially cut down on waste.

The GRTU was reacting to a statement made by the chairman of the Chamber of Commerce's healthcare business sector, Reginald Fava, that the chamber planned to recommend this money-back system to the government.

On Monday, Mr Fava said that under this proposal, the government would no longer buy medicines but pass this role on to private pharmacies.

While agreeing on the need for a reimbursement system, the GRTU maintained that this was not a new concept and had been suggested to the government for 20 years.

The Pharmacy of Your Choice (POYC) scheme set the ball rolling for this system. According to a tripartite agreement signed between the GRTU, the Chamber of Pharmacists and the government, the reimbursement system was to be implemented following an agreement with all parties involved, the GRTU said.

"The agreement stipulates that the government would initiate a dialogue with the Chamber of Pharmacists and GRTU, with the involvement of the representatives of the importers, at the appropriate stage," the GRTU said.

Despite the chambers' attempts to start discussions, the government was dragging its feet.

On Monday, Mr Fava said it was his chamber that had asked Social Policy Minister John Dalli to stop the Pharmacy of Your Choice scheme to carry out a proper stock take and rethink the way it was operated.

The scheme, which allows patients to pick up the medicines they are entitled to from their chosen private pharmacy instead of from a government pharmacy, was introduced last year in some localities. But the roll-out across the country was stopped in July 2008 so it could be evaluated.

However the GRTU said the suggestion to suspend the roll-out until it was assessed had been made by the GRTU and the Chamber of Pharmacists.

"This does not mean that the two organisations are not disappointed that the government has taken so long to modify the system and continue the roll-out.

"The problems that prevented a speedier roll-out... mainly stem from the fact that the government dragged its feet in committing manpower and resources to the scheme. This is beside the fact that it ignored the one to one consultations carried out by both organisations and did its own assessment unilaterally."

The Social Policy Ministry did not reply to whether it was Mr Fava who suggested the roll-out and did not comment on its stand on the proposed reimbursement.

A spokesman said: "The ministry is currently evaluating the POYC system, and subsequently coming up with a sustainable and an efficient system. At this point the government will refrain from commenting on people's opinions on the subject."

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