11 January, 2019

Ministry of Healthcare to determine maximum prices for medicines in all regions of Kazakhstan

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At the online conference on the PrimeMinister.kz official site, Chairperson of the Pharmacy Committee of the Ministry of Healthcare Lyudmila Byurabekova told about innovations in the field of drug provision for the population. In particular, on the reduction of drug prices in the framework of the President’s Address.

As Byurabekova noted, the law “On Amendments and Additions to Certain Legislative Acts on the Circulation of Medicinal Products and Medical Devices” was developed in accordance with the Address of the President to the People of Kazakhstan “Third Modernization of Kazakhstan: Global Competitiveness” and aims to regulate prices for all medicinal facilities.

“As soon as the law comes into force — three months from the date of publication — the procedure will begin to determine wholesale and retail limit prices, above which medicines cannot be sold to wholesale distributors in the retail sector,” said Byurabekova.

The goal of introducing state regulation of drug prices is to ensure uniform pricing mechanisms for medicines in the wholesale and retail segment, regardless of the region. This will increase the economic affordability of medicines for the population and increase the responsibility of participants in the pharmaceutical market: manufacturers of medicines, wholesale and retail sales organizations.

The Chairperson of the Pharmacy Committee clarified that changes in the pricing of medicines imply 4 levels of price regulation — at the producer, wholesale, retail, and purchasing levels in the guaranteed volume of free medical care and the compulsory social health insurance system.

“Four levels of price regulation relate directly to registration of the price by the manufacturer: they relate to those drugs that are registered in the Republic of Kazakhstan. Further, it will be approved taking into account the margin on the wholesale price and the maximum retail price. And separately, the rules will regulate pricing for the purchase of medicines in the framework of the guaranteed amount of free medical care and in the system of compulsory social health insurance,” Byurabekova noted.

At the same time, prices for expensive medicines will also be regulated.

Byurabekova emphasized that price regulation will not affect the quality of medicines.

“Price and quality are two criteria that are always taken into account in drug supply. An expert organization, the National Center for the Evaluation of Medicines, is responsible for our quality. When registering, the company presents a whole package of documents confirming the quality of the drug. If the drug is registered in the territory of Kazakhstan, then it has confirmed its safety and quality. Accordingly, price regulation will not affect the quality of drugs. It will affect margins: that margin, that margin, which we will approve by order, we have actively discussed with the public and associations. And in principle, this extra charge suits them all. We do not expect that there will be a leaching or outflow of some drugs from the market,” said the chairperson of the pharmacy committee.

However, in all regions of the country the prices of medicines will be the same.

“Regardless of the region, whether the rural or urban pharmacy prices will be approved by the order and act equally within the entire territory of Kazakhstan,” said Byurabekova.

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