Union Health Minister Mansukh Mandaviya announced that the Indian Government’s decision to cap the prices of essential medicines will save consumers approximately Rs 3,500 crore annually. The Government had already notified the market of the ceiling prices of 651 out of 870 essential medicines, resulting in an average reduction of 16.62% in the approved ceiling price of medicines. The Health Ministry amended the National List of Essential Medicines (NLEM) in September 2022, and the ceiling prices of essential drugs have been capped accordingly. Despite 12.12% annual hike in the prices of drugs based on the Wholesale Price Index (WPI), consumers will benefit from the decline in the prices of essential drugs.
The Indian Government has implemented a policy of capping the prices of essential medicines in the country. The National List of Essential Medicines (NLEM) contains a list of essential medicines that are required to be made available at all times in appropriate quantities and at affordable prices. The prices of these essential medicines are fixed and regulated by the National Pharmaceutical Pricing Authority (NPPA) under the Drugs (Prices Control) Order (DPCO) 2013. The calculation for essential drugs is based on the simple average of all the medicines in a particular therapeutic segment with sales of more than 1%.
Reduction is attributed to Janaushadhi Abhiyan, which has increased competition in the market and thereby discouraged pharmaceutical companies from hiking prices. These Janaushadhi shops sell generic medicines at significantly lower prices compared to branded drugs. Janaushadi shops offer high-quality generic medicines at very affordable prices, making them accessible to people from all economic backgrounds. The medicines sold are tested and certified by the National Accreditation Board for Testing and Calibration Laboratories (NABL) to ensure their quality and effectiveness. These shops offer a wide range of medicines covering all major therapeutic categories, including anti-infective, anti-hypertensive, anti-diabetic, and more. Janaushadi shops are easily accessible, with the thousands of outlets located across the country and ever increasing. They are also open for extended hours, making it convenient for people to buy medicines at any time. These shops are also providing employment opportunities for local people, especially in rural areas where access to healthcare and employment opportunities are limited.
The capping and slashing of medicines is not an isolated case. Right from taking over the reins of governance, the administration is trying to provide affordable medical solutions to the public. In February 2017, the Indian Government slashed the prices of stents by a significant 85 per cent. In March 2020, the National Drug Pricing Authority amended the regulations, setting the highest price cap for non-drug stents and biodegradable stents.
Ayushman Bharat is another flagship programme undertaken by the government. PM-JAY is a Government-funded health insurance scheme that provides a cover of up to Rs. 5 lakhs per family per year for secondary and tertiary care hospitalisation across both public and private empanelled hospitals in India. The benefits of the scheme include cashless access to healthcare services, covering all expenses related to treatment, such as medical examinations, consultations, laboratory investigations, medical implantation services, accommodation, food services, complications arising during treatment, and post-hospitalisation follow-up care for up to 15 days.
The Government is providing out-of-the-box solutions to the patients. All the schemes are aimed at mitigating the catastrophic expenditure on medical treatment that often pushes millions of Indians into poverty every year. With these measures, the administration has been able to ease pressure on government-run hospitals as well. In a true sense, all these have benefited an ordinary man immensely.
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