Karnataka Seeks Price Control For Cardiac, Kidney Medicines After NPPA Move

Karnataka has asked the Centre to extend price-control measures to high-cost medicines used in cardiac and kidney treatment, after the National Pharmaceutical Pricing Authority (NPPA) gave in-principle approval to cap trade margins on certain non-scheduled anti-cancer medicines at 30% of their maximum retail price (MRP).

Health Minister U.T. Khader welcomed the NPPA’s move and called for its swift implementation, saying price rationalisation should result in direct savings for patients.

The proposed measure is not yet final, as the list of medicines to be covered still has to be completed.

NPPA move awaits final list of medicines

At its meeting on October 8, the NPPA gave in-principle approval to rationalise trade margins on non-scheduled anti-cancer medicines identified under Paragraph 19 of the Drugs (Prices Control) Order, 2013.

The Ministry of Health and Family Welfare has been asked to constitute an expert committee under the Directorate General of Health Services.

The committee will recommend the anti-cancer medicines that should be brought under price control, and is expected to submit its report by October 14.

The Centre estimates that the proposed measure could reduce the MRP of several anti-cancer medicines by 20% to 70%.

It has also estimated that the reduction could save patients around ₹2,500 crore.

Khader said price rationalisation should be extended to other essential medicines where high treatment costs place a burden on patients.

Karnataka’s position is that the proposed 30% trade-margin cap for non-scheduled anti-cancer medicines should be followed by wider action covering other essential, high-cost medicines.

The State specifically identified medicines used in cardiac and kidney treatment as areas where similar action was needed.

Karnataka’s representation to the Centre

The State had written to Union Health Minister J.P. Nadda on September 23 seeking national-level action on medicine pricing.

The representation followed inspections in Karnataka that found substantial differences between the procurement costs of medicines and the prices charged to patients.

Karnataka identified pricing concerns involving 253 medicines and consumables with mark-ups.

The State sought the inclusion of advanced chemotherapy, targeted therapy and other expensive cancer medicines under the ambit of the Drugs (Prices Control) Order.

It also called for a comprehensive cap on trade margins for high-cost and life-saving medicines.

Karnataka further sought an expansion of the NPPA’s price-control oversight within the applicable legal framework.

It also called for stronger enforcement against excessive charging and profiteering.

The State proposed a national study of medicine prices to support a broader assessment of pricing across the healthcare system.

Another proposal was to form an expert committee involving the Centre, States, hospitals, insurers and medical experts.

These proposals were part of Karnataka’s wider call for action on expensive medicines beyond the anti-cancer drugs currently covered by the NPPA’s in-principle decision.

Disclosure of medicine costs in hospital bills

Karnataka has also sought greater transparency in the prices charged to patients.

A circular issued on October 1 asked healthcare institutions to disclose both the purchase or landing cost and the MRP of medicines in patient bills.

The instructions are advisory in nature and are proposed to take effect from November 1.

The disclosure requirement is intended to show patients the difference between what healthcare institutions paid for medicines and the MRP listed on the bill.

The State’s pricing concerns arose after inspections found substantial differences between procurement costs and prices charged to patients.

Karnataka’s call for wider price controls also follows observations by the Supreme Court on the pricing of essential medicines, including cancer drugs.

The Supreme Court questioned why the MRP of such medicines could not be capped at 16% above the price to retailers.

That 16% limit is applicable to scheduled medicines under the Drugs (Prices Control) Order, 2013.

Karnataka has argued that the benefits of price rationalisation should reach patients directly, rather than remain limited to a portion of non-scheduled anti-cancer medicines.

The State’s demand therefore combines a proposed extension of price controls with stronger enforcement and greater disclosure of medicine costs in hospital bills.

Published - October 10, 2026 02:17 pm IST.

Source: The Hindu