On March 18, 2025, the Ministry of Chemicals and Fertilizers shared an important update regarding the National List of Essential Medicines (NLEM) 2022 and its impact on medicine prices. The latest fixation and refixation of prices under the NLEM has led to an average price reduction of approximately 17%, resulting in an estimated annual savings of ₹3,788 crore for patients across the country.
Key Highlights of the Update:
Impact of NLEM Price Fixation:
- The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals (DoP), is responsible for fixing the ceiling prices of medicines listed in the NLEM.
- As of March 12, 2025, the ceiling prices for 928 scheduled formulations and the retail prices for over 3,200 new drugs have been set by the NPPA.
- The average price reduction due to the fixation or refixation of these medicines is estimated to save ₹3,788 crore annually for patients.
Affordable Medicines Through Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP):
- Under the PMBJP, quality medicines are made available through Jan Aushadhi Kendras (JAKs) at 50% to 80% lower rates compared to branded medicines available in the market.
- This initiative is designed to provide affordable healthcare options to the general public.
AMRIT Initiative for Discounted Medicines and Implants:
- The Affordable Medicines and Reliable Implants for Treatment (AMRIT) initiative provides significant discounts of up to 50% on medicines, implants, surgical disposables, and other consumables through AMRIT Pharmacy stores set up in hospitals and institutions.
Free Drugs Service Initiative:
- To reduce out-of-pocket expenses for patients, the Free Drugs Service Initiative has been rolled out under the National Health Mission. This initiative covers the supply of 106 drugs at Sub-Health Centres, 172 drugs at Primary Health Centres, and up to 381 drugs at District Hospitals.
Expansion of PMBJP Product Basket:
- As of now, 2,047 medicines and 300 surgicals, medical consumables, and devices are available under the PMBJP scheme. These include essential medicines in key therapeutic areas such as cardiovascular, anti-cancer, anti-diabetic, anti-infectives, anti-allergic, and gastrointestinal medicines.
- The government has set a target to increase the product basket to 2,100 medicines and 310 surgicals, medical consumables, and devices by March 31, 2025.
Monitoring and Enforcement of Drug Prices:
- The NPPA continuously monitors the prices of both scheduled and non-scheduled drugs through various mechanisms, including Price Monitoring Resource Units (PMRUs) and market-based databases.
- The NPPA also takes action against instances of overcharging based on complaints received through portals like Pharma Jan Samadhan (PJS) and CPGRAMS.
Conclusion:
These initiatives highlight the government’s commitment to providing affordable healthcare and ensuring that essential medicines are accessible to all. By regulating prices, enhancing access to affordable medicines through schemes like PMBJP and AMRIT, and expanding the range of products under the PMBJP, the government aims to reduce financial barriers to healthcare for millions of Indians.
