The Health Ministry has capped the profit percentage of essential medicines at 100 percent. The change will come into effect next year.
A statement issued by the Health Ministry said pharmacies could charge a maximum of 100 percent markup on the price of essential medicines. The decision was made per Article 63 of the Health Services Act, which stipulates that the government must establish a maximum retail price for medicines. The government has taken steps to control the cost of medicines five years after the act came into effect.
While the first phase of introducing Maximum Retail Price (MRP) on medicines applies only to essential medicines, 357 medicines are included under the category. They are medicines included in the Maldives Food and Drug Authority (MFDA)'s essential medicine list. MRP will apply to all medicines sold in the Maldives in the second phase. The government hopes to implement the second phase in mid-2022.
'When MRP is introduced, the maximum mark up that pharmacies can put on the medicine's price is 100 percent. MRP will be applicable on all medicines imported and sold in the Maldives [in future],' the statement said.
Establishing MRP on medicines reduces spending on health services by MVR 250 million and will stop pharmacies from adding 200 to 400 percent markups on the original price of medicines. As per the proposed budget for 2022, 50 percent of the national health insurance scheme, Aasandha's funding is used to buy medicines.
Doctors have also been instructed to write the actual name of the medicine on the prescription instead of stating the medicine's brand name. This will also eliminate charging high prices for specific brands of medicine, the health ministry said.
