Price caps help check medical costs, bring relief to poor

allan| TNN | May 24, 2017, 05.29 AM IST

NEW DELHI:The health sector saw major initiatives to bring down and cap prices of essential medicines through price control, coupled with moves to expand a network of cheaper drug dispensaries in the last three years.

The push for cheaper medicines and medical devices comes even as cost of medical care remains high with the government looking for ways to expand insurance cover and reduce out-of-pocket expenditure.

Official data shows prices of essential medicines have come down by over 50% in the last three years. Price control played a major role in enhancing savings on medicines, which constitute at least 40% of an household's expenditure on health. Both health ministry and drug price regulator National Pharmaceutical Pricing Authority (NPPA) worked to cap prices of commonly used essential medicines. The health ministry ensured timely review of the National List of Essential Medicines, the basis for price capping and NPPA implemented price caps keeping a tight check on violations and non-compliance.