What is the government's mechanism to control the prices of life-saving, essential drugs
The Centre has agreed in the Supreme Court to place its mechanism to control the prices of life-saving, essential drugs on record.
To control the prices of life-saving, essential drugs, the government has implemented a mechanism that ensures affordability and accessibility for the public. Here are the key points regarding the government's mechanism for price control:
- The government has established the National Pharmaceutical Pricing Authority (NPPA), which is responsible for determining and regulating the prices of essential drugs in India.
- The NPPA uses a formula called the 'Drug Price Control Order' (DPCO) to fix the prices of drugs based on market data, production costs, and other relevant factors. This formula helps prevent excessive pricing by pharmaceutical companies.
- The government periodically reviews and updates the National List of Essential Medicines (NLEM) to include new drugs and remove those that are no longer essential. The prices of drugs listed in the NLEM come under price control by the NPPA.
- The NPPA monitors and enforces the prices of essential medicines through regular inspections and interactions with pharmaceutical companies and stakeholders.
- Any violations of price control regulations can result in penalties and legal actions against the concerned companies.
- The government has also urged the pharmaceutical industry to adopt a voluntary pricing mechanism to ensure that prices remain reasonable and affordable.
- The pricing mechanism is subject to review and modifications as and when required to address the evolving needs of the healthcare system.
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a year ago