Medicine price increases capped for 2020
Medicine price increases capped for 2020
Medicine price increases will be capped at 4.53% for 2020, according to reports.
The announcement was published in the government gazette last week,with health minister Dr Zweli Mkhize noting that that applications for adjustments of the single-exit price could be submitted for the first time from January 10 to no later than February 28.
Increases were capped at 3.78% in 2019.
The department determines the maximum price increase using a formula that factors in CPI, PPI as well as the exchange rate and international prices. It maintains tight control over medicine prices to ensure that companies do not pass margin strain onto consumers through higher prices.
Earlier in the year, the pricing committee said it would constantly review the formula used to determine the price caps, taking into account stakeholder feedback, but it would be consistent for at least the next three years (through to 2022).
Healthcare changes in South Africa
The price adjustments come amid a host of changes to South Africa’s healthcare landscape, with the introduction of the National Health Insurance being at the top of the pile.
Along with the NHI, medical aid schemes and private healthcare practitioners are preparing themselves for a shake-up in the industry.