The cost of medications below the maximum price is 4-5 times higher than others
NEW DELHI: government The limitation of the prices of essential medicines has not made the medicines affordable and, on the other hand, has led to an increase in these products in comparison to the unregulated ones, says the Economic Study, while advocating non-distorting mechanisms to maintain Prices under control.
The survey suggests that the government - as a large buyer of drugs through its various schemes and mechanisms such as CGHS, defense, railways, etc. - combines its purchases and uses its bargaining power effectively to provide affordable medicines.
“The price increase is greater for more expensive formulations than for cheaper ones and for those that are sold instead of retail stores. These findings reinforce that the result is contrary to what DPCO (Drug Price Control Order) intends to do: make medicines affordable, ”he said.
Officials, who requested anonymity, said the Survey rightly points out the anomalies. “Price control has not benefited the consumer as much as it has harmed the industry. Take the example of stents. While stents have become cheaper and have reduced the margins of medical device manufacturers, the costs of procedures have not changed since hospitals have increased other cost components to match their margin, an official said. Another said that market forces should determine prices as competition keeps them under control.
The survey, which analyzed data for 1,751 formulations and 49,893 brands, shows that prices of drugs under DPCO 2013 increased on average by Rs 71 per mg of the active ingredient (raw material), while for drugs not covered by regulation, Prices increased by Rs 13 per mg of active ingredient. Similarly, the prices of medicines, under control, sold in hospitals increased as much as 99 rupees per mg, while they were 25 rupees per mg for those who were not under price control and sold in hospitals. The survey also shows that access to services improved through Bharat and Mission Indradhanush.