Doctors body urges PM for cap on prices of all drugs, implants

The Alliance of Doctors for Ethical Healthcare has written to Prime Minister Narendra Modi seeking a cap on the prices of drugs, implants and other medical appliances.
The doctors' body urged him to bring all medicines under the national list of essential medicines (NLEM) stating that as of now only l5 per cent of them are in the list.
This leaves 85 per cent medicines, which are as essential as other drugs, out of the NLEM hence vulnerable to exploitative pricing, Dr G S Grewal and Dr Arun Mitra of the alliance said in the letter to the prime minister.

Once these medicines are included in the NLEM these will come under the National Pharmaceutical Pricing Authority (NPPA) and their prices can be regulated.
The prices of all essential medicines should be those of hospital prices, which are far less than the MRP mentioned on these.
The body has proposed that the prices of the drugs, after including all the medicines in NLEM, and implants used in healthcare should be calculated as per cost accountancy only.

"No other method can lead to justifiable fixation of prices of drugs. Also, the profit margin on the cost thus calculated should not be more than l0 per cent for the wholesaler and 20 per cent for the retailer which is already in practice. No other profit should be given to the health provider facility," they suggested.

The alliance said the difference between the actual prices of the drugs and the MRP should not be more than 20 per cent. At present the difference is up to 700-800 per cent in some cases.
"The implants or drugs have no label of hospital price on them. It has only one label MRP. This difference is used either by retailer or by a professional for making profit.
"In some cases, patients may be given discount of up to 10 per cent but still the profit margin is very high. This is in a way excess charge levied from the patient," the letter said.