2 hrs ago
NPPA Seeks Cancer Drug Pricing Details for Proposed 30% Margin Cap
Karnataka Health Minister U T Khader says a national medicines regulator has asked the Union Health Ministry for information about cancer drug prices.
The ministry has been asked to provide a list of the medicines and their profit margins by October 14.
Khader says the proposed limit would keep those margins at 30 per cent.
He says people often see a medicine’s selling price but cannot tell how its price was set.
Some examples he gave involved medicines selling for far more than their stated costs.
He believes clearer rules could make cancer treatment less expensive for patients.
He estimated that the changes could save patients about Rs 2,500 crore in out-of-pocket spending.
Karnataka also wants similar scrutiny of costly treatments and medical equipment for other serious illnesses.
Karnataka Health Minister U T Khader said the NPPA asked the Union Health Ministry for a list of cancer medicines and their profit margins by October 14.
The proposed measure would restrict cancer medicine profit margins to 30%, according to Khader.
Khader said medicine packaging usually shows the maximum retail price but not the underlying costs, and argued for greater pricing transparency.
He cited examples of medicines reportedly costing Rs 3,000 and Rs 5,000 being sold for Rs 25,000 and Rs 65,000, respectively.
Khader estimated effective implementation could reduce out-of-pocket spending by around Rs 2,500 crore and said Karnataka would seek similar regulation for costly medicines and medical equipment.
- Who
- The National Pharmaceutical Pricing Authority, the Union Health Ministry and Karnataka Health Minister U T Khader.
- What
- The NPPA directed the Union Health Ministry to submit a list of cancer medicines and their profit margins, ahead of a proposed 30 per cent margin limit.
- Where
- The announcement was made at a press conference in Bengaluru.
- When
- Khader announced the direction on Saturday; the ministry was asked to submit the list by October 14.
- Why
- Khader said the proposal aims to improve pricing transparency and reduce the financial burden of cancer treatment on patients.
Patient affordability and transparency
Fair regulation for manufacturers
Profit limits and medicine prices
Patient affordability and transparency
Khader said a 30 per cent profit-margin cap could lower the cost of expensive cancer medicines and reduce patients’ out-of-pocket spending.
Fair regulation for manufacturers
Khader said regulation should ensure manufacturers are not unfairly pushed into losses while preventing patients from being exploited by excessive margins.
Pricing oversight
Patient affordability and transparency
Khader called for greater transparency so patients can better understand prices and authorities can act on margins above the proposed limit.
Fair regulation for manufacturers
Khader said hospitals’ equipment costs and specifications can be difficult for ordinary patients to assess, indicating that oversight should examine these claims while maintaining a balanced framework.
Key facts
- Requested submission deadline
- October 14
- Proposed profit-margin cap
- 30 per cent
- Estimated potential reduction in out-of-pocket spending
- Around Rs 2,500 crore, according to Khader
- Medicine price examples cited
- A medicine reportedly costing Rs 3,000 sold for Rs 25,000; an injection reportedly costing Rs 5,000 sold for Rs 65,000
- Further areas Karnataka wants reviewed
- Expensive medicines and medical equipment used for heart disease and kidney ailments
- Minister
- U T Khader, Karnataka Health Minister
Quotes
U T Khader
Karnataka Health Minister
“If a 30 per cent cap is implemented, the prices of several expensive medicines could come down substantially. Some medicines costing Rs 3,000 are sold at Rs 25,000, while an injection reportedly costing Rs 5,000 was being sold at Rs 65,000 in another instance.”
thehansindia.com
“Effective implementation of the proposed measures could reduce out-of-pocket expenditure by around Rs 2,500 crore. I am confident that the Union health department will implement the NPPA’s directions.”
thehansindia.com
Sources
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