Drug prices rise despite presidential decree

Not only did the decree signed by President Rodrigo Chavez promising to reduce drug prices in Costa Rica have no effect, the Consumer Price Index study by the National Institute of Statistics and INEC for the census last June showed a 3.45% increase in prices.

The study covered 16 categories of medicines, of which 14 categories of medicines increased in price, and only the prices of medicines diagnosed with cough and gastritis decreased by -0.41% and -2.25%, respectively.

Other drugs studied, such as drugs for osteoporosis, saw the biggest price increases, up 9.02 percent; drugs for blood vessel problems rose about 8 percent; drugs for asthma rose 5.37 percent; Drugs for contraception, nerves and even the flu, the numbers have increased more than a year after the presidential decrees went into effect.

The decree signed in 2022 does not combat the oligopoly that dominates the Costa Rican pharmaceutical market and directly prevents the import of medicines, ie small pharmacies are obliged to buy from legally protected pharmacies as the only ones entitled to carry medicines. pharmaceuticals, which in turn has pharmacy chains that compete with the country’s smaller pharmacies.

Economists recommend changing legislation to tackle the problem

For Wilmer Ramos, an economist and former deputy, to analyze these increases you have to understand the context in which they occurred. “Drug prices are rising in an environment where they should be falling, as the dollar has fallen almost 20% over the past year and a half, and that should also be reflected in lower prices. Import costs.”

Ramos, also an MP, pushed a bill to be presented to the Legislative Assembly’s Economic Affairs Committee. For Ramos, the law should make it mandatory for doctors to prescribe drugs by their active ingredient rather than by brand name, and patients must have the same molecule. of all available options, and can choose the cheapest one, ¡If you tell me I need a shirt, I’m going to look for a shirt, now if you tell me it must be a Tomy, it’s a shirt, and I can’t get it.

Wilmer Ramos explains

Another change in the law is that medicines registered in Costa Rica can be sold freely so that there is no longer just one sole representative. This happened today so the rep could charge whatever price he wanted. This is called parallel importing, another issue is royalties that should be banned because brands and doctors agree on this, if you prescribe to a patient, the brand will give you a profit or tell the pharmacy if you sell me to me A higher percentage of the price of the drug, then doctors and pharmacists are prescribing the brand name. Economists pointed out.

Wilmer Ramos said royalties, which are a way for big labs to market drugs, should be outlawed, price discrimination, exclusive importers, chain owners who sell to their pharmacies at cheaper prices, should be banned. not worth it. The price is higher than what is sold in independent pharmacies.

What the new law needs to do is promote competition in the drug market, not regulate it. Economist and former Congressman Wilmer Ramos explained.