NPPA Fixes Price of Necessary Medical Devices

NPPA asks the manufacturers to revise the price at every level, starting from the first point of sale to the price at which they sell it to the stockiest.

Keeping in mind the current Covid-19 situation, National Pharmaceutical Pricing Authority (NPPA), the drug price regulator has capped the trade margin of the five most widely used medical devices: the pulse oximeter, blood pressure monitoring machine, nebulizer, digital thermometer and glucometer, at 70% of the price at which manufacturers sell it to the distributor. 
The order will be in force from 20 July 2021, to January 2022. According to data collected by the National Pharmaceutical Pricing Authority, earlier the margins of these products range up to 709%.
The NPPA has asked the manufacturers to revise the price at every level, starting from the first point of sale to the price at which they sell it to the stockiest.
The new MRP on the products will now be the fixed trade margin, which is nothing but the difference between the price at which the manufacturer sells the products to the distributor or stockiest and the price paid by the customer at the receiving end.
The order will be in force from 20 July 2021, to January 2022. According to data collected by the National Pharmaceutical Pricing Authority, earlier the margins of these products range up to 709%.
As per a report by the National Sample Survey Office, around 70% of the out-pocket expenditure is spent on buying medicines in India. This means that if the price of the medicines drops, it will be more affordable for everyone.
representative image
Image: representative image
As per the order, the NPPA has used its emergency powers under paragraph 19 of the Drug Price Control Order. Drug Price Control Order is the body that controls and regulates the fixing of prices on medicines. Another important department is the National List of Essential Medicines which includes the essential medicines according to the public's health needs and priority. The list of medicines is generally categorized on the basis of its efficacy, prevalence, cost-effectiveness by an expert panel. The list is revised time-to-time after a definite interval.
The entire process is taken care of by the Ministry of Health and Family Welfare.



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