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Govt may ask industry to give medicine at half rate for health insurance schemes for poor
Joseph Alexander, New Delhi | Friday, July 20, 2007, 08:00 Hrs  [IST]

The central government is planning to seek the help of pharma industry to supply medicines at half rates of the MRP for the comprehensive medical insurance schemes, especially for the people below the poverty line, and also to create drug banks.

The working group, constituted by the Pharmaceutical Advisory Forum, to chalk out modalities for the health insurance schemes and the drug banks, held its first meeting on July18 and decided to meet on August 16.

The panel, headed by joint secretary in the Chemicals ministry G S Sandhu, held preliminary discussions and went through the proposals finalised by Andhra Pradesh, Himachal Pradesh and Punjab in this regard.

According to the sources, the government wants the industry to play a more generous role to make health insurance programmes successful. The government would approach the industry to supply medicines at half rates of the existing MRP for this purpose. As the plan is in the initial stage, the industry is yet to take a stand in this regard. The representatives of IDMA and OPPI were also among those attended the working group meeting.
The panel has the health secretaries from the states of Andhra Pradesh, Punjab, Rajasthan, Bihar and Mizoram, representatives of four pharma associations, Drug Controller of Gujarat, representatives of AIOCD, consumer bodies and insurance companies as members.

The Advisory Forum and later the Drug Consultative Committee had suggested approaching the Prime Minister to seek 20 per cent of the local development fund of MPs for the purpose of floating medical insurance schemes. An amount to the tune of Rs 300 crore a year can be collected through this, a solid sum to pay the insurance premium and funding the drug banks.

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