1 hr ago
Karnataka Seeks Central Action Over High-Cost Drug Price Gaps
Karnataka officials found that some hospitals buy expensive medicines and supplies at very low prices.
Patients may then be charged prices close to the much higher printed MRP.
In some cases, the billed price was more than 10 times the hospital’s purchase cost.
The difference was reported to exceed 52 times for some products.
The state asked the central government to investigate the problem across India.
It also wants hospitals to show both their purchase cost and the MRP on bills.
Officials are considering stronger price controls and rules for hospital discounts.
More inspections will look at other expensive medicines and medical supplies.
Karnataka reported markups of 10 to over 52 times procurement costs for some medicines and hospital supplies.
Inspections identified major gaps between institutional landing costs, printed MRPs and patient sale prices.
The state cited 253 drugs with extreme pricing anomalies and separately reviewed 189 high-cost drugs and 768 consumables.
Karnataka asked the Union Government to expand price controls, regulate trade margins and require cost-to-MRP transparency.
Further verification will examine antiretroviral drugs, critical antibiotics, medical devices and costly hospital consumables.
- Who
- The Karnataka Government, its Food Safety and Drug Administration, and the Union Ministry of Health and Family Welfare are involved.
- What
- Karnataka reported large differences between institutional landing costs, MRPs and patient charges for high-cost drugs, medical devices and hospital consumables.
- Where
- Inspections took place in Bengaluru, districts across Karnataka, hospitals, wholesale premises and other establishments.
- When
- A special verification drive was conducted on September 25 and 26, 2026; the state had also raised the issue during recent hospital inspections.
- Why
- Karnataka is seeking national action to address potentially excessive patient billing and improve transparency in medicine and medical-supply pricing.
Karnataka’s proposed reforms
Current pricing framework
Disclosure of hospital pricing
Karnataka’s proposed reforms
Karnataka wants hospitals to display both institutional landing costs and MRPs on patient bills.
Current pricing framework
The current framework does not specifically require hospital pharmacies to pass institutional discounts through to patients or disclose them on bills.
Control of margins
Karnataka’s proposed reforms
The state seeks regulated trade margins for essential high-value medicines, medical devices and consumables, along with expanded price controls.
Current pricing framework
Non-scheduled medicines have no cap on retailer margins, while most medical devices and consumables have limited or no coverage under the Drug Price Control Order.
National oversight
Karnataka’s proposed reforms
Karnataka has requested an inter-ministerial expert group, a national data study and audit and enforcement mechanisms.
Current pricing framework
The existing system relies on National Pharmaceutical Pricing Authority ceiling prices for scheduled drugs and manufacturer-set MRPs for non-scheduled drugs.
Key facts
- Reported markups
- Some products were billed at markups ranging from 10 times to more than 52 times procurement cost.
- Anomalous drugs
- The state provided details of 253 drugs with extreme pricing anomalies.
- Special verification findings
- Inspections covered 189 high-cost drugs and more than 768 consumable items.
- Inspection dates
- September 25 and 26, 2026.
- Current scheduled-drug rule
- The National Pharmaceutical Pricing Authority fixes ceiling prices for scheduled drugs, with a 16% retailer margin.
- Non-scheduled drugs
- There is no cap on retailer margins; the manufacturer-printed MRP is the stated limit.
- State proposals
- Karnataka called for expanded price controls, regulated trade margins, mandatory cost-to-MRP disclosure and stronger auditing.
Sources
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