Will not allow cost of knee implants to rise beyond 10% in a year: Govt

The government on Tuesday said the ceiling price of orthopaedic knee implants will be monitored to ensure that the cost does not increase beyond 10 per cent in a given year.

"Though the industry has requested for a 20 per cent (10 per cent for the year 2018 and 10 per cent for the year 2019) increase in the price of knee implants, it was decided to further monitor the price increase of knee implants as per para 20 of the DPCO, 2013 that restricts price increase beyond 10 per cent in a given year. This shall be subject to a review after one year," an official statement said.

The NPPA notified the ceiling price of orthopaedic knee implants on 16th August, 2017 by invoking extraordinary powers, in public interest, under Para 19 of Drugs Prices Control Order (DPCO) 2013, for a period of one year.

Subsequently, the applicability of ceiling prices fixed for orthopaedic knee implants was extended for another one year, up to 15 August, 2019.

Accordingly, the cost of knee implants was reduced significantly, up to 69 per cent, resulting in a notional saving of Rs 1,500 crore per annum to the consumers.

The NPPA, in its meeting held on 8 Aug, 2019, reviewed the matter. It was noted that there has been an increased access due to knee implants becoming affordable. As per the data submitted by manufacturers and importers, an increase of 30 per cent in the sales of knee implants has been reported during the period of July, 2018 to June, 2019.

The knee implant is a non-scheduled medical device/drug for which DPCO, 2013 allows an annual increase up to 10 per cent of MRP. However, this was not permitted in 2018.