South Africa "May Control Drug Prices"

South Africa's department of Health could reintroduce price controls to curb the soaring costs of medicines, Health Minister Nkosazana Zuma has warned in Parliament. Discussing the high costs of medicines, she said that "drastic steps" are necessary; drugs are the fastest-growing and single-largest item of spending for medical schemes.

A committee has been set up to develop a Departmental pharmaceutical policy, Dr Zuma announced. Its brief includes developing a general pricing plan for medicines in the private and public sector, an essential medicines list for the public sector, which serves 80% of the population, and strategies to increase the use of generics and improve medicine distribution in rural areas (Marketletter September 12).

The committee will also consider the reintroduction of price controls, and investigate the mark-up system, which the Minister believes is an incentive to the use of more expensive drugs. A previous investigation had recommended that pharmacists and dispensing doctors should be remunerated by dispensing fees and not by the mark-up system.