Healthcare Drug, Device and Product Pricing: A Pragmatic Solution for America.
America has a complex and convoluted manufacturing and distribution pipeline that regulates medication prices in the country. The aim of this solution is to streamline distribution and manufacturing models, give everyone access to a price registry so that they know what they should be paying.
This will allow medical insurers to better price insurance, while ensuring that manufactures, distributors and dispensers do not price gouge.
This pricing model applies to Drug, Device and Product Pricing.
Trade/Brand name medication – MCC (Medication Cost Control.)
If a healthcare manufacture or its subsidiary sells and/or manufactures a trade/brand name in any country other than the USA, the lowest sales price globally will be the registered sales price in America. The same applies to any product manufactured under licensing agreement.
GMC (Generic Medication Cost Control)
- Anyone licensed to manufacture can produce generic medication.
- Generic Medication may not be retailed for more than manufacturing cost +15%.
- Anyone dispensing generic medication above the 15% mark-up will be fined at $15,000 per infraction on each sales unit or 50% of the sale, whichever is highest.
- Distribution costs may not be added to generic medication.
- All trade/brand name medicines may be substituted for generic medicine. Government subsidized medical aid must prescribe generic medication.
MPR (Medicine Price Registry)
A Medicine Price Registry will be established in the USA to regulate medicine prices. Everyone will have access to this registry for the purposes of:
- Knowing what to pay for a prescription from your doctor.
- Finding possible generics for a branded medicine.
- Ensuring that Americans are not being overcharged for medicine.
SEP (Single Exit Price)
The single exit price (SEP) mechanism in America lists the maximum price that a medicine can be charged at. Dispensers may charge an additional dispensing fee depending on the price of the medicine. The Medicines and Related Substances Act allows for the following charges (excl state Tax):
- Where the SEP is less than $80.00, the maximum dispensing fee is $7.04 + 46% of the MRP.
- Where the SEP is less than $200.00, the maximum dispensing fee is $18.80 + 33% of the MRP.
- Where the SEP is less than $799.99, the maximum dispensing fee is $59.83 + 15% of the MRP.
- Where the SEP is greater than or equal to $799.99, the maximum dispensing fee is $140.00 + 5% of the MRP.
We would like to hear from you, is this pricing structure adequate?