With the Government trying to work out a formula to float the comprehensive health insurance schemes for the people below the poverty line and others, the pharmaceutical industry wants some concessions on price control front in return to the goodwill gesture of supplying drugs at half the rates for the schemes.

As the working committee on health insurance is scheduled to meet again on October 4, the industry wants to link the proposed pharmaceutical policy, which aims to put control on the prices of 354 drugs instead of the existing 74 drugs, with the health insurance scheme being mooted with the support of the pharma companies.

``The industry has agreed to supply medicines at half the MRP for the insurance schemes. The Government wants to come out with schemes for those below the poverty line and above the poverty line. We are showing this gesture to support the common man, hence the Government should also make some reciprocal gesture by not enforcing control over 354 drugs,'' an industry leader said.

The contention of the industry is that the comprehensive health insurance scheme would be covering the common man, who has been the main concern of the Government for strengthening the price control. They argue that instead of taking away the margins of more drugs, the companies should be allowed to invest the same in research and development and other charity measures for the benefit of the public.

In the earlier meeting of the working group, set up by the Pharmaceutical Advisory Forum, the representatives of the leading manufacturing associations have conveyed their willingness to supply subsidized medicines for the proposed schemes.

The panel, headed by Joint Secretary in the Chemicals Minister G S Sandhu, already sat through proposals finalised by Andhra Pradesh, Himachal Pradesh and Punjab in this regard. 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 working group held its first meeting in the second of July and was attended by the officials and representatives of pharma bodies. The industry leaders said they had limited role, except offering medicines, in formulating the much-desired schemes.

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. The amount thus could be tapped will be to the tune of Rs 300 crore an year, a solid sum to pay the insurance premium and funding the drug banks.