Trade margins on 137 cancer drugs capped, but will bills get lower?
The Indian government has capped trade margins on 137 cancer drugs at 30% of the MRP to reduce patient costs. Experts warn that while this may lower drug prices, hospitals might offset the loss by increasing charges for other services like diagnostics and consumables.
Why it matters
Healthcare affordability is a critical issue in India, and this policy highlights the ongoing struggle to balance pharmaceutical regulation with hospital revenue models.
NEW DELHI: Govt’s move to cap trade margins at 30% of MRP on 137 cancer drugs, covering over 1,000 medicine brands, puts the focus on actual patient savings, with effective implementation and monitoring needed to ensure it translates into lower medical bills.The cap could narrow the gap between prices at which medicines are supplied to hospitals and their MRPs, but it may have a limited impact on overall cost of healthcare as hospitals may seek to offset lower margins by raising charges on consumables, diagnostics or procedures, public health and industry experts told TOI. A similar trend was seen after cardiac stent prices were capped in 2017, when several private hospital chains raised angioplasty package rates, they said.Wider rationalisation of margins across products needed: ExpertsExperts said wider rationalisation of margins across medical products, alongside closer scrutiny of hospital charges, may be needed to substantially reduce medical bills.
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