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DRUG PRICING (Issues (crumbling status of the already existing Jan…
DRUG PRICING
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Introduction
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two-fifths of the overall healthcare costs + more than half of the total private OOP healthcare costs - therapeutics
measures
new Drug (Price Control) Order (DPCO) of 2013 or the proposed expansion of the generic drugs scheme by increasing the number of Jan Aushadhi Kendras.
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Prices of around 850 essential drugs capped by the government,companies - raise prices by no more than 10% in a year
drug price regulator National Pharmaceutical Pricing Authority(NPPA) revises prices annually based - wholesale price index (WPI)
Issues
crumbling status of the already existing Jan Aushadhi Kendras due to procurement delays ,errant supplies are rampant
Deficient supply chain management prevents the utilisation of low-cost generic drugs from picking up
Poor forecasts, archaic procurement systems, and small markets cause supply bottlenecks
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drug regulatory systems in the country being controlled by the states, NO consistent standards for enforcement.
pharmaceutical manufacturers estimate that 20% of all drugs sold - substandard or counterfeit,government estimates - these account for almost 10% of the total pharmaceutical market
Way forward
licensing mechanisms, including medicine patent pool or tiered pricing models, - maximise public health benefits
Trade margin rationalisation - imposes a cap on the margins across the value chain, rather than capping price of devices, cap on upstream margins across the entire value chain, rather than imposing caps on prices of products downstream
building competency in health technology assessment (HTA) , taking into consideration evidence of safety, efficacy, patient-reported outcomes and cost-effectiveness
Centralised drug procurement has been effectively used in states like Tamil Nadu to bring down costs.
Drug firms - incentivised to innovate and invest in research , India - increase GDP on healthcare