Effective early next year, the government start regulating the prices of pharmaceutical products with view to putting an end to malpractices by different players in the industry, it has emerged.
The move follows the adoption of a new policy, dubbed ‘Pharmaceutical Pricing and Containment Policy’, back in October, which officials now say will be implemented in the first quarter of 2021.
Under the policy, government through the Rwanda Food and Drug Authority (FDA) and other relevant institutions, will set the price range for each pharmaceutical product in regard to factors including the original acquisition price (manufacturer’s price), freight services involved in delivering the product to Rwanda, among other costs.
Developed by the Ministry of Health, the goal of the policy is to increase control over the pharmaceutical costs in the health sector as well as to improve the monitoring of the supply chain related costs.
According to a statement from the health ministry, the policy is aligned with Rwanda’s quest towards Universal Health Coverage; increasing funding for medicines; strengthening partnerships and collaboration for health; and increasing the capacity of the health sector to fulfil its mandate of ensuring that Rwandan people have access to safe, efficacious, affordable and good quality medicines.
Dr Charles Karangwa, the acting Director General of the FDA said the policy will limit the tendency of hiking the prices of medicine on the market without any basis.
"For instance, during this period of the Covid-19 pandemic, we have observed a critical situation where some businesses may be having particular products in stock, while others don’t. So, as a result, those who have the products try to make profit of the situation by hiking the prices,” he said.
As part of its implementation, upon importation of pharmaceutical products, they will have to pass through a product information management system so that their original acquisition price (manufacturers’ prices) are recorded, and they will be marked. This, in addition to other measures, will assist in making sure that the products are sold at reasonable price.
Commenting on the policy, Innocent Hahirwa, a professional pharmacist told The New Times that having government regulating prices for pharmaceutical products is an important development.
"First of all, pharmacies are dealing with people’s health and the ultimate goal should be promoting the welfare of the Rwandan population, not making business,” he said.
In a statement written as a foreword to the policy document, Dr. Daniel Ngamije the Minister of Health said regulation of medicine prices and measures to address cost containment in the public and private sector are required to ensure universal access to health services.
"In light of the expected future economic growth that shall be accompanied by an increase in overall pharmaceutical expenditure, it is timely to start the regulation of prices of pharmaceutical products,” it read.
What medical insurers say
Medical insurance companies have been among the key stakeholders in the process of pricing pharmaceutical products.
They (health insures) often negotiate prices with retail pharmaceutical outlets, setting price ceilings for the reimbursement of such products consumed by their clients.
Speaking to The New Times, Dr Blaise Uhagaze, the Executive Secretary of the Rwanda Health Insurers Association said it will help insurers to know the products on the market and their prices, which will ease their process of paying for what has been consumed by patients.
"We (insurers) don’t know exactly how to negotiate (with pharmacies) without knowing the prices well,” he said.
"The policy is good for the insurers and it is good for the population. I think it is good for everyone because somehow, everyone can be a patient,” he added.