Amid mounting complaints about exorbitant drug prices, on Monday
state pricing authorities mandated new price caps on several
hundred types of medicines. Prices of more than 400 pharmaceuticals
have been cut by an average of 30 percent from previous caps set by
the government in 2001.
The?State Development and Reform Commission said the move
is designed to save consumers 3.5 billion yuan (US$422 million).
The commission is authorized to set prices on medicines and
services that are identified as meeting basic needs.
China Daily reports that according to a commission
official, the latest price cuts are designed to battle
irregularities in the purchasing and sales of medicines.
The lower prices were determined after consulting
pharmaceuticals makers, marketing sources, doctors and consumers,
said the official, who declined to be identified. "We will continue
to cut the prices of basic medicines on the government's medical
care list because there is still room for more."
But the commission admitted that the government's efforts to
reduce "unreasonably high medicine prices" since 1997 have not been
very successful, although it has imposed several rounds of price
cuts.
In the past, prices were reduced only for antibiotics, so only a
few patients benefited. In addition, hospitals and pharmacies
intentionally avoided selling medicines with price caps, sometimes
nullifying the government's actions.
Some people, especially those who are not covered by medical
insurance, remain skeptical about the effectiveness of this round
of price cuts.
"I am not sure, because they always make these efforts but
medicines and medical services are still too expensive for common
people," said Jiang Jing, a 56-year-old laid-off worker who lives
in Beijing's Xicheng District.
Jiang, who receives no medical benefits, said he is afraid of
getting sick.
"You know, if I catch cold and buy medicine from a hospital, I
will spend at least 200 yuan (US$24) each time," Jiang said, noting
that the amount is nearly half of his monthly unemployment
benefit.
Complaints and fears like Jiang's are the result of overcharging
by hospitals, which often do under-the-table deals with drug
vendors.
A recent irregularity that made headlines occurred at Beijing's
No. 6 People's Hospital, which illegally allowed pharmaceuticals
vendors from a joint venture producer to sell highly priced
products there.
The China News Agency reported that a bottle of a nutritional
supplement originally priced at 30 yuan (US$3.60) was sold to a
patient with diabetes for 380 yuan (US$45.70). In a tragic twist to
the case, the drug caused the woman to die on March 28.
Although the government has frequently reiterated that hospitals
should not overcharge patients, some facilities continue to raise
prices for medicines, medical services and disposable products for
medical use, according to a commission circular released
Monday.
To relieve patients' financial burdens, the government has fixed
the maximum prices of more than 1,000 types of medicines, and,
since October 1997, reduced fixed prices on 10 occasions. In doing
so, it expected to save patients 18 billion yuan (US$2.2
billion).
The commission said that pricing administrations at various
levels should continue examining the prices of medicines and
medical services, and punish violators by giving warnings,
confiscating illegal incomes, imposing fines and revoking
licenses.
The commission official said the government is exploring new
ways of regulating medical prices within the framework of a market
economy.
To resolve existing problems, medical treatments and drug sales
should be managed separately, and the medical insurance and legal
systems improved.
(China Daily June 1, 2004)