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The Voice

'Don't do it!' - Health Ministry warns pharmacies against price gouging
published: Friday | October 29, 2004

By Dionne Rose, Staff Reporter


John Junor (right), minister of health, listens keenly to Dr. Winston Davidson, chairman of the Medical Review Committee, at a media luncheon yesterday at the Courtleigh Hotel, New Kingston. The function was held to announce the increases in the subsidies on medical drugs covered under the National Health Fund. - RUDOLPH BROWN/Chief Photographer

PHARMACIES AND manufacturers who charge user fees on drugs covered under the National Health Fund (NHF), and who are involved in price gouging, will be hit hard with sanctions, Health Minister John Junor warned yesterday.

The minister issued the warning during a media luncheon at the Courtleigh Hotel, New Kingston where the increase in subsidies and expansion in the coverage of medical drugs under the NHF were announced.

"We must give consideration to some regulation. I am not speaking of price control but some mechanism of regulation. We have to examine that possibility otherwise we (the government) would be, in my view, derelicting duty," Junor said.

INVESTIGATION NEEDED

However, in a swift response, Henry Harris, president of the Pharmaceutical Association of Jamaica, said the health minister would have been better served if he had named the offenders rather than make such a sweeping indictment.

"The Pharmaceutical Association of Jamaica has never condoned anybody abusing a system that was meant to provide access to drugs," Harris said.

He added that the ministry needs to investigate why pharmacies were charging the alleged user fees, noting that it was not hard to find out the identity of who was doing what. Mr. Harris chided that while it was easy for charges to be made, it was also equally important for those in authority to investigate and take action based on the findings.

Dr. Winston Davidson, chairman of the Medical Review Board, however, feels the minister's remarks were justified.

EROSION IN PERCENTAGE VALUE

"One of the problems that we have been facing since we started is that there has been some erosion and in some cases some quite significant and substantial erosion of the percentage value of the subsidies provided," Davidson said.

"The manner in which this erosion has taken place is that a number of manufacturers and pharmacists have increased the prices of these particular items. In the case of pharmacists, this is not so much a matter of price increase but more so imposition of a user charge."

The senior medical doctor said that these "Actions are of great concern to us because what they do is to deny the benefit that they are seeking to provide patients. What happens is that by increasing their price, these entities are in effect taking the benefit that is being provided by the National Health Fund."

He continued: "I am imploring manufacturers and pharmacies to please allow the benefits that we are providing to go to the advantage of the patients. We have not sought to adjust your prices, what we have done is to accept the prices that exist in the marketplace and what we are seeking to do is to assist patients to meet their out of pocket expenditure."

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