Question
Consider the following statements regarding “National Pharmaceuticals Pricing Authority” (NPPA):
Select the correct answer using the code given below:
- It is under the ministry of health and family welfare
- It fixes/revises the prices of controlled drugs
- It implements the provisions of the Drug Price Control Order (DPCO)
Select the correct answer using the code given below:
Answer: Option B
Answer: (b)
Drug Price Control Orders (DPCOs) are issued by the Government, in the exercise of the powers conferred under section 3 of the Essential Commodities Act 1955 to ensure that the medicines are listed under the National List of Essential Medicines (NELM) are available at a reasonable price to the general public.
The National List of Essential Medicines (NELM), prepared by the Ministry of Health and Family Welfare, is a list of medicines considered essential and high priority for India’s health needs. It is based on aspects like the prevalence of disease in the population, safety and efficacy of the medicine, and current affordability.
National Pharmaceuticals Pricing Authority (NPPA) is an independent body of experts constituted by the Government of India Resolution in 1997, is under the department of pharmaceuticals, ministry of chemicals and fertilizers. NPPA is responsible for fixing and revising the prices of pharmaceutical products and availability of the medicines in the country as well as the enforcement of DPCO.
The organization is also entrusted with the task of recovering amounts overcharged by manufacturers for the controlled drugs from the consumers. It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels.
For regulating the prices, the ceiling prices are determined based on market-based pricing method, as the maximum mark-up that a retailer can charge over the reference price, which is the simple average of the prices of all the brands with a market share of greater than or equal to 1 per cent based on market data provided by IMS Health, a market research firm.
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Answer: (b)
Drug Price Control Orders (DPCOs) are issued by the Government, in the exercise of the powers conferred under section 3 of the Essential Commodities Act 1955 to ensure that the medicines are listed under the National List of Essential Medicines (NELM) are available at a reasonable price to the general public.
The National List of Essential Medicines (NELM), prepared by the Ministry of Health and Family Welfare, is a list of medicines considered essential and high priority for India’s health needs. It is based on aspects like the prevalence of disease in the population, safety and efficacy of the medicine, and current affordability.
National Pharmaceuticals Pricing Authority (NPPA) is an independent body of experts constituted by the Government of India Resolution in 1997, is under the department of pharmaceuticals, ministry of chemicals and fertilizers. NPPA is responsible for fixing and revising the prices of pharmaceutical products and availability of the medicines in the country as well as the enforcement of DPCO.
The organization is also entrusted with the task of recovering amounts overcharged by manufacturers for the controlled drugs from the consumers. It also monitors the prices of decontrolled drugs in order to keep them at reasonable levels.
For regulating the prices, the ceiling prices are determined based on market-based pricing method, as the maximum mark-up that a retailer can charge over the reference price, which is the simple average of the prices of all the brands with a market share of greater than or equal to 1 per cent based on market data provided by IMS Health, a market research firm.
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