Karnataka Pushes for Expanded Drug Price Caps After National Pharmaceutical Pricing Authority’s (NPPA) Approves Cancer Margin Limit

The National Pharmaceutical Pricing Authority (NPPA) gave in-principle approval on October 8 to cap trade margins on identified non-scheduled anti-cancer medicines at 30 % of their maximum retail price (MRP). The decision is subject to finalisation of the medicine list, which the Union Health Ministry must submit by October 14. Karnataka’s Health Minister U T Khader welcomed the move and urged the Centre to extend similar limits to other high-cost, life-saving drugs.

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Karnataka’s demand follows a state-level inspection that uncovered large gaps between procurement costs and patient prices for 253 medicines and consumables. In a letter dated September 23, the state asked Union Health Minister J P Nadda for national-level action. The Supreme Court has also questioned why essential medicines, including cancer drugs, are not capped at 16 % above the retailer price, as scheduled medicines are under the Drugs (Prices Control) Order, 2013.

ThePrint

• The Centre estimates the 30 % margin cap could lower the MRP of several cancer medicines by 20 % to 70 %, potentially saving patients around Rs 2,500 crore.

The Hindu

• A circular issued on October 1 requires hospitals to disclose purchase (landing) cost and MRP on patient bills, with advisory implementation proposed from November 1.

The Hindu

Minister U T Khader said the NPPA directive will improve transparency, allowing patients to see actual procurement costs and profit margins. The state also plans to compile similar cost data for expensive cardiac and kidney-related equipment and consumables, and to submit representations to the NPPA board urging broader regulation.

New Indian Express

• “The financial strain of cancer treatment often pushes families into debt, making it inevitable for them to exhaust their savings and sell assets to meet medical expenses,” — Mr. Khader, health minister

The Hindu

• “If a 30 per cent cap is implemented, the prices of several expensive medicines could come down substantially. Some medicines costing INR3,000 are sold at INR25,000, while an injection reportedly costing INR5,000 was being sold at INR65,000 in another instance,” — T. Khader, health minister

Hindustan Times

• September 23 – Karnataka writes to Union Health Minister J P Nadda highlighting pricing concerns in 253 medicines.

The Hindu

• October 1 – Circular instructs healthcare institutions to disclose purchase cost and MRP on bills (advisory).

ThePrint

• October 8 – NPPA gives in-principle approval for a 30 % trade-margin cap on non-scheduled anti-cancer drugs.

ThePrint

• October 14 (scheduled) – Union Health Ministry must submit the list of cancer medicines and profit-margin details.

Hindustan Times

• November 1 (scheduled) – Advisory disclosure instructions expected to take effect.

The Hindu

The expert committee under the Directorate General of Health Services is slated to recommend the specific anti-cancer medicines for inclusion by October 14. Karnataka will continue compiling cost data on high-price cardiac and kidney treatments and will seek a national-level meeting of the Food Safety and Standards Authority of India to address enforcement challenges. The advisory bill-disclosure rules are set to become operational from November 1, pending institutional adoption.

The Hindu