Essential medicines
- Essential medicines are those that satisfy the priority health care needs of the country’s population.
- They are listed with reference to the levels of healthcare namely primary, secondary and tertiary.
- They are generally based on the country’s disease burden, priority health concerns, affordability concerns etc.
- In India, National List of Essential Medicines (NLEM) formed in 2011 decides the essential medicines.
- The list is prepared by the Union Ministry of Health and Family Welfare.
- NPPA fixes ceiling price of essential medicines of Schedule I under DPCO 2013.
- The calculation for essential drugs is based on simple average of all medicines in particular therapeutic segment with sales of more than 1%.
- In respect of medicines that are not under price control, manufacturers are allowed to increase the maximum retail price by 10% annually.