Now Reading: Parliamentary panel seeks 20% cap on drug and device mark-ups
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Parliamentary panel seeks 20% cap on drug and device mark-ups
A parliamentary standing committee has recommended that the gap between the landing cost of a medicine or medical device and its maximum retail price (MRP) should not exceed 20%. The panel cited wide price disparities that inflate patients' out-of-pocket expenses, giving the example of the clot-busting drug Tenecteplase, whose landing cost is Rs 18,000 but MRP is Rs 50,000.
The Standing Committee on Health and Family Welfare also called for rationalising prices of peripheral stents and drug-eluting balloons, and for promoting domestic production of costly devices such as implantable cardioverter defibrillators, heart valves and pacemakers. It stressed that price cuts must not compromise quality, and recommended strict quality-management systems for manufacturers and measures to prevent shortages and black marketing.
The panel noted that price regulation had worked before: cardiac stents, which cost around Rs 1.9 lakh, were capped at Rs 25,000-30,000 in 2017. It also flagged the high cost of clear aligners (Rs 1.5 lakh to Rs 5 lakh) and recommended standardising prices. A dedicated medical-devices subsidy fund for R&D and preferential procurement for devices with at least 50% domestic content were also proposed.
Indian Opinion Analysis
This recommendation comes amid a broader push by the government to make healthcare affordable, but a 20% margin may be difficult for manufacturers to sustain, especially for imported high-end devices where landing costs include duties and logistics. The stent price cap in 2017 did cut costs but led some global firms to exit the market, raising availability concerns. The panel is now walking a tightrope between affordability and ensuring continued supply. The next step is for the health ministry to consider these recommendations and possibly issue a draft price-control order. Watch for the government's response in the next few months, as it will signal how far it is willing to go in regulating private healthcare costs.
Source: timesofindia.indiatimes.com
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