Massive markup on high-cost drugs: Raids to continue, Karnataka writes to Centre
The Karnataka government has urged the Union Health Ministry to address the massive price markups on essential medicines and hospital consumables. Investigations revealed that some drugs are sold to patients at over 50 times their procurement cost, prompting calls for stricter price controls.
Why it matters
Addresses critical issues regarding healthcare affordability and the need for pharmaceutical pricing transparency.
The Karnataka government has flagged the disparity between the institutional landing costs and the Maximum Retail Prices (MRP) of high-value medicines, cancer drugs, antibiotics and hospital consumables supplied to hospitals across the State.
The department has raised the issue with the Union Ministry of Health and Family Welfare and the National Pharmaceutical Pricing Authority (NPPA). Health and Family Welfare Minister U.T. Khader, in a letter dated September 23, wrote to the Union Health Minister seeking action.
Recent investigations by the Karnataka Food Safety and Drug Administration (FSDA) have revealed that pharmaceutical companies are supplying medicines to hospitals at heavily discounted institutional (landing) prices, while patients are being billed at or near the printed MRP, resulting in markups ranging from 10 times to over 52 times the actual procurement cost.
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