Last Updated on August 11, 2024 by The Health Master
NPPA
The rising cost of healthcare can be a burden for many. To ensure essential medicines remain affordable, the National Pharmaceutical Pricing Authority (NPPA) plays a crucial role in regulating medicine prices in India.
Let’s delve deeper into how the NPPA accomplishes this under the Drugs (Prices Control) Order, 2013 (DPCO 2013).
Categorizing Medicines for Effective Control
The DPCO 2013 classifies medicines into two categories: scheduled and non-scheduled.
Scheduled Formulations:
These essential medicines are listed in Schedule-I of the DPCO.
Their ceiling prices are reviewed and adjusted annually based on the Wholesale Price Index (WPI) of the previous year.
Importantly, these revised prices are readily available for public access on the NPPA’s website (nppaindia.nic.in) every April 1st.
Non-Scheduled Formulations:
These medicines fall outside the strict price control category.
However, the DPCO restricts manufacturers from raising the Maximum Retail Price (MRP) by more than 10% compared to the price twelve months prior.
Manufacturers have the flexibility to utilize this maximum permissible increase depending on market conditions and business needs.
Maintaining Compliance and Taking Action
Beyond price control, the NPPA also ensures adherence to quality standards.
Drug manufacturers must comply with the Drugs and Cosmetics Act, 1945, and associated regulations, including Good Manufacturing Practices (GMP).
This guarantees the safety and efficacy of medicines.
The NPPA actively monitors compliance and takes strict enforcement actions against companies that violate these regulations, particularly those selling medicines above the permissible price limits.
Notably, in the financial year 2023-24 alone, the NPPA recovered a significant amount (Rs. 72.73 crore) from companies that overcharged for medicines.
Transparency and Public Awareness
The NPPA website plays a vital role in ensuring transparency.
Citizens can access crucial information such as revised ceiling prices for scheduled formulations, empowering them to make informed choices and avoid overpaying for essential medicines.
A System for Affordable Medicine
By categorizing medicines, setting price limitations, and enforcing compliance, the NPPA works diligently to make essential medicines more accessible for all Indians.
This system fosters a balance between affordability for consumers and viability for pharmaceutical companies.
Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.
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