Medicine for the Masses: Andhra’s Bold Move Against Drug Overpricing

In a decisive action against drug overcharging and making healthcare affordable, the Andhra Pradesh government has issued a notification to set up Jan Aushadhi shops in all Government General Hospitals (GGHs) of the state.

Highlights:

Health Minister Y Satya Kumar Yadav has sanctioned the move following an examination where it was found that private medical outlets in GGHs were charging ridiculous profit levels, even up to 600% on some medicines.

Today, 23 private shops function in 16 GGHs, while Nandyal GGH does not have any such setup. Most of these shops, usually disguised as self-help groups, have been accused of price loophole exploitation and stocking only 30–40% of life-saving generic medicines.

The new Jan Aushadhi centers will be run by the Indian Red Cross Society on behalf of the Pradhan Mantri Bharatiya Jan Aushadhi Pariyojana (PM-BJAP) so that there is a maximum profit margin of 15% on medicines.

All sales and pricing at the centers will be monitored transparently by specific software designed by the Department of Pharmaceuticals to rule out manipulation and malpractice.

Jan Aushadhi shops will only carry generic drugs of quality, with branded medicines being provided in exceptional situations where generics cannot be made available and with advance clearance.

District Collectors, who will head local Red Cross branches, will take charge of implementing and day-to-day management to provide checks and balances as well as improved patient care.

The government is also considering the increase in Jan Aushadhi centers to District and Area Hospitals so that more patients can benefit and profiteering is reduced further in the retail medical sector.

Source: The New Indian Express