China will cancel most drug government pricing

Xinnuo Medicine 2018-09-28

Xinhua News Agency, Beijing, May 5 (Reporter An Zhen, Zhao Chao) The reporter learned from the National Development and Reform Commission on the 5th that with the approval of the State Council, the National Development and Reform Commission and the National Health and Family Planning Commission, the Ministry of Human Resources and Social Security and other departments have recently joined forces. It issued a notice and decided to cancel the pricing of most pharmaceutical companies from June 1, 2015, improve the drug procurement mechanism, and play the role of medical insurance control fees. The actual transaction price of drugs is mainly formed by market competition.

"This reform is to establish a top-level design of a market-oriented drug price formation mechanism. The original government's 'single hand' control of drug prices has changed to better play the role of the government and the market, and the relevant government departments. The role will be transformed into the maintenance of the pharmaceutical market competition order and reasonable price formation mechanism." Chang Feng, director of the Institute of Pharmaceutical Price of China Pharmaceutical University, said.

According to the "Notice on Printing and Issuing Advance Drug Price Reform Opinions", except for the anesthesia and the first class of psychotropic drugs, the National Development and Reform Commission temporarily implements the highest ex-factory price and the highest retail price management, and the government pricing of other drugs is cancelled. The implementation of the highest retail price limit management, in accordance with the principle of classification management, the price is formed by the market in different ways. among them:

(1) The drugs paid by the medical insurance fund explore the mechanism for guiding the rational formation of drug prices by formulating medical insurance payment standards;

(2) Patented drugs and exclusive production of drugs, and the formation of prices through the establishment of an open, transparent and multi-participatory negotiation mechanism;

(3) Blood products outside the medical insurance catalogue, the state's unified procurement of preventive immunization drugs, the state's free AIDS antiviral treatment drugs and contraceptives, and the price is formed through bidding or negotiation.

(4) Other drugs that have previously implemented market-adjusted prices continue to be independently set by the producers and operators based on production and operating costs and market supply and demand.

The "Notice" emphasizes that to establish a scientific and rational drug price formation mechanism, we must give full play to the decisive role of the market allocation of resources, and at the same time, we must better play the role of the government and strengthen post-event supervision. After canceling the pricing of pharmaceutical companies, we must do a good job in linking with reform policies such as drug procurement and medical insurance payment, and strengthen supervision over medical expenses and price behavior.

In terms of relevant supporting mechanisms, the Notice clearly clarifies that the health and family planning department should implement classified procurement according to the characteristics of the drug and market competition, and mobilize the participation of many parties to promote enthusiasm, promote market competition, and rationally determine the price of drug purchases; Control irrational use of pharmaceutical medical devices and over-examination and treatment. The medical insurance department should work with relevant departments to formulate medical insurance drug payment standards, do a good job in the coordination of medical insurance and bidding procurement policies, and promote medical institutions and retail pharmacies to actively reduce procurement prices. The competent pricing department shall improve the price monitoring system, strengthen the supervision of drug price behavior, and seriously investigate and deal with price fraud, price collusion and monopolistic behavior.