Update | China scraps price caps for most drugs
Move designed to give the market a bigger say as officials vow to keep an eye out for price-fixing
The central government will scrap price caps for most medicines from next month in a bid to cut official intervention and allow the market to play a bigger role in the sector.
The National Development and Reform Commission (NDRC) said in a statement released yesterday that price caps would disappear on all drugs except anesthetics and some types of psychiatric medications.
The commission also pledged to keep a close eye on the market for disruptive practices such as price-fixing to ensure prices remained stable after the new rule took effect.
"From June 1, government-set prices on most drugs will be cancelled to improve purchasing mechanisms for drugs, control medical insurance costs and allow the price of medicines to be set by the market," the statement said.
A separate statement posted on the NDRC's website said the time was "ripe" for China to lift government controls on drug prices.
An unnamed commission spokesperson said the state-run tendering process for medication and national medical insurance spending limits meant the change would not result in big price increases for most drugs.
The national medical insurance system covers about 2,000 types of drugs, according to Xinhua.
