Price increase of knee implants should not increase beyond 10% in a given year: NPPA

The ceiling price of orthopaedic knee implants to be monitored such that the price increase of knee implants does not increase beyond 10% in a given year. This was stated by the National Pharmaceutical Pricing Authority in a government notification

Image Source: Google
Image Source: Google

The NPPA notified the ceiling price of orthopaedic knee implants on 16th August, 2017 by invoking extraordinary powers, in public interest, under Para 19 of Drugs Prices Control Order (DPCO) 2013, for a period of one year.

Subsequently, vide notification dated August 13, 2018, the applicability of ceiling prices fixed for orthopaedic knee implants was extended for another one year,  up to August 15, 2019.

Accordingly, the cost of knee implants was reduced significantly, upto 69%, resulting in a notional saving of Rs.1500 crore per annum to the consumers.

The NPPA, in its meeting held on Aug 08, 2019, reviewed the matter. It was noted that there has been an increased access due to knee implants becoming affordable. As per the data submitted by manufacturers and importers, an increase of 30% in the sales of knee implants has been reported during the period of July 2018 to June 2019.

The knee implant is a non-scheduled medical device / drug for which DPCO, 2013 allows an annual increase upto 10% of MRP. However, this was not permitted in 2018.

Though the industry has requested for a 20% (10% for the year 2018 and 10% for the year 2019) increase in the price of knee implants, it was decided to further monitor the price increase of knee implants as per para 20 of the DPCO, 2013 that restricts price increase beyond 10% in a given year. This shall be subject to a review after one year.