New Advisory Committee Under NITI Aayog to Regulate Prices Of Medicines

New Advisory Committee Under NITI Aayog to Regulate Prices Of Medicines

News:

Ministry of chemicals and fertilizers announced the formation of a standing committee on affordable medicines and health products (SCAMHP) to decide list of drugs which should be under price control

Important Facts:

• Currently, NPPA which is an autonomous body and responsible for regulating prices of medicines and health products such as stents under the National List of Essential Medicines (NLEM), besides monitoring prices of those that are not on the list.
• From now onwards, the NITI Aayog committee will decide which drugs should be under price control.

Current Pricing of Drugs:

• The Health ministry prepares the list of drugs eligible for price regulation.
• The department of pharmaceuticals (DoP) then incorporates NLEM into Schedule 1 of the Drugs (Prices Control) Order (DPCO).
• Following this, NPPA fixes the prices of drugs in this schedule.

Standing Committee on affordable medicines and health products (SCAMHP).

• Committee will be headed by Niti Aayog Member (Health)
• Will be a recommending body to the National Pharmaceutical Pricing Authority (NPPA) regarding prices of pharmaceutical products.
• Committee has also been empowered to take any issues with respect to price control of the drugs.
• The committee can take a matter for examination, suo-moto or on the recommendations/request of DoP, NPPA and Department of Health & Family Welfare.

Significance:

• According to NPPA estimates, the initiatives have helped patients across the country save more than Rs. 15,000 crore
• On the flip side health activists feel the committee has diluted the powers of NPPA and this may have repercussions on affordability of drugs.