Health advocacy groups raise concern as NITI Aayog gets to review drug pricing

In a surprising move which would dilute the central role of the National Pharmaceuticals Pricing Authority (NPPA) in setting drug prices, the central government has formed a committee under NITI Aayog to recommend on price control.

As per the current laws, the NPPA, an autonomous body, regulates the prices of medicines and health products including stents under the National List of Essential Medicines (NLEM). Moreover, it also has the role in monitoring the medicines and products which are not on the list.

We view this as a negative development that gives sweeping powers to a committee headed by the NITI Aayog. The committee has also been empowered to take up any matter in pricing. Judging from amendments under discussion in the PMO for the last several months, the unbridled powers of this set-up will have damaging repercussions for the public and access to medicines.

As per the new order issued by the government, the existing mechanism will be put to an end. When the drug is declared essential it would automatically come under the price control by NPPA. The new order calls for the NITI deciding on the drugs coming under the price control.

Earlier this week, the ministry of chemicals and fertilizers formed a standing committee on affordable medicines and health products (SCAMHP) led by member (health), NITI Aayog. The other members of the committee included the chief economic adviser in the ministry of finance; secretary of the department of health research; NLEM vice chairman; joint secretary of the department of industrial policy and promotion (DIPP); director general of health services and a subject expert on biomedical devices/pharmaceuticals. The order said that "The committee should be housed in the NITI Aayog and will be serviced by it."

Financial daily Mint reported that the order said that SCAMHP will now act as a recommending body to NPPA for regulating the prices of drugs and health products. Earlier, the Ministry of Health and Family Welfare prepared the list of drugs which are eligible for price regulation. 

The health advocacy groups have raised their concern over the decision to dilute the role of NPPA. Malini Aisola, an activist with the All India Drug Action Network, said: "We view this as a negative development that gives sweeping powers to a committee headed by the NITI Aayog. The committee has also been empowered to take up any matter in pricing. Judging from amendments under discussion in the PMO for the last several months, the unbridled powers of this set-up will have damaging repercussions for the public and access to medicines."