Difference in Cost of Medication in Local and Overseas Hospitals and Pharmacies

Debated in Parliament on 28 Jan 2016.

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Christopher de Souza inquired about the rationale for cost differences in medication between Singapore and neighbouring countries and asked if a review of pricing policy to balance costs and improve affordability would be conducted.
Minister Gan Kim Yong explained that medication costs vary across countries due to factors like operating expenses and pharmaceutical companies’ pricing strategies based on market size and purchasing power.
Singapore’s public healthcare institutions use joint procurement for about 90% of drugs to achieve economies of scale, resulting in lower prices for patients.
The Ministry of Health has enhanced subsidies for medications, increasing the subsidy rate for lower- to middle-income patients from 50% to 75% for drugs on the Standard Drug List, with additional discounts for Pioneers.
The government regularly reviews and expands the coverage of subsidised drugs, adding 12 new drugs in 2015 to improve affordability and treatment options.

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Christopher de Souza

Mr Christopher de Souza asked the Minister for Health (a) what is the rationale for the difference in the cost of medication in local hospitals and pharmacies as compared with those in neighbouring countries; and (b) whether there will be a review of pricing policy in order to balance out the cost between the two, if possible, so as to make medication more affordable for Singaporeans.

Gan Kim Yong

The cost of medicines differs across countries due to factors, such as operating costs as well as pharmaceutical firms’ pricing strategy for the various markets, which takes into account the size and purchasing power of the respective markets.

To reduce the cost of medicines, our public healthcare institutions undertake joint group procurement for about 90% of our drugs to enjoy economies of scale. The savings are reflected in the prices of medicines sold to patients.

To keep drugs affordable for subsidised patients, the Ministry of Health regularly reviews the subsidies of medications which were recently enhanced to improve their affordability. Since 1 January 2015, lower- to middle-income patients at the Specialist Outpatient Clinics (SOCs) and polyclinics can receive 75% subsidy for drugs listed on the Standard Drug List (SDL), up from 50% previously. This effectively halves the patients’ share of the cost of their medications. Pioneers enjoy a further 50% off their subsidised outpatient drugs.

Besides helping patients pay for their drugs, the Ministry also regularly reviews the coverage of subsidised drugs. In 2015, 12 new drugs were added into the SDL and Medication Assistance Fund, including drugs used to treat colorectal cancer and Alzheimer’s disease. We will continue to review our policies to keep healthcare affordable.

Summary written by AI (learn more)

Christopher de Souza inquired about the rationale for cost differences in medication between Singapore and neighbouring countries and asked if a review of pricing policy to balance costs and improve affordability would be conducted.
Minister Gan Kim Yong explained that medication costs vary across countries due to factors like operating expenses and pharmaceutical companies’ pricing strategies based on market size and purchasing power.
Singapore’s public healthcare institutions use joint procurement for about 90% of drugs to achieve economies of scale, resulting in lower prices for patients.
The Ministry of Health has enhanced subsidies for medications, increasing the subsidy rate for lower- to middle-income patients from 50% to 75% for drugs on the Standard Drug List, with additional discounts for Pioneers.
The government regularly reviews and expands the coverage of subsidised drugs, adding 12 new drugs in 2015 to improve affordability and treatment options.

Questions identified by AI (learn more)

Difference in Cost of Medication in Local and Overseas Hospitals and Pharmacies | PAPERCUTS

Difference in Cost of Medication in Local and Overseas Hospitals and Pharmacies

Debated in Parliament on 28 Jan 2016.

Summary written by AI (learn more)

Christopher de Souza inquired about the rationale for cost differences in medication between Singapore and neighbouring countries and asked if a review of pricing policy to balance costs and improve affordability would be conducted.
Minister Gan Kim Yong explained that medication costs vary across countries due to factors like operating expenses and pharmaceutical companies’ pricing strategies based on market size and purchasing power.
Singapore’s public healthcare institutions use joint procurement for about 90% of drugs to achieve economies of scale, resulting in lower prices for patients.
The Ministry of Health has enhanced subsidies for medications, increasing the subsidy rate for lower- to middle-income patients from 50% to 75% for drugs on the Standard Drug List, with additional discounts for Pioneers.
The government regularly reviews and expands the coverage of subsidised drugs, adding 12 new drugs in 2015 to improve affordability and treatment options.

Questions identified by AI (learn more)

Full Transcript

Christopher de Souza

Gan Kim Yong

Summary written by AI (learn more)

Christopher de Souza inquired about the rationale for cost differences in medication between Singapore and neighbouring countries and asked if a review of pricing policy to balance costs and improve affordability would be conducted.
Minister Gan Kim Yong explained that medication costs vary across countries due to factors like operating expenses and pharmaceutical companies’ pricing strategies based on market size and purchasing power.
Singapore’s public healthcare institutions use joint procurement for about 90% of drugs to achieve economies of scale, resulting in lower prices for patients.
The Ministry of Health has enhanced subsidies for medications, increasing the subsidy rate for lower- to middle-income patients from 50% to 75% for drugs on the Standard Drug List, with additional discounts for Pioneers.
The government regularly reviews and expands the coverage of subsidised drugs, adding 12 new drugs in 2015 to improve affordability and treatment options.

Questions identified by AI (learn more)

Difference in Cost of Medication in Local and Overseas Hospitals and Pharmacies

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Questions Identified

Full Transcript

Christopher de Souza

Gan Kim Yong

Summary

Questions Identified

Difference in Cost of Medication in Local and Overseas Hospitals and Pharmacies

Summary

Questions Identified

Full Transcript

Christopher de Souza

Gan Kim Yong

Summary

Questions Identified