Review of Pricing Policy at Government and Restructured Hospital Pharmacies

Mr Seah Kian Peng asked the Minister for Health whether there will be a review of the pricing policy of items sold at various Government and restructured hospital pharmacies to further widen the price points between items sold at these pharmacies and in the retail industry so as to make them more affordable to the public at the hospital pharmacies.

To help keep medicines affordable for patients, the Government has adopted a multi-pronged approach.

First, our public hospitals procure the majority of their drugs in bulk to enjoy economies of scale. The savings are reflected in the pricing of the medicines in the public hospital pharmacies and passed on to patients.

Second, subsidised patients enjoy heavy Government subsidies off the prices of drugs listed under the Standard Drug List (SDL) and the Medication Assistance Fund (MAF). These are drugs that have been assessed to be clinically- and cost-effective.

Since 1 January 2015, subsidies for SDL drugs at the Specialist Outpatient Clinics and Polyclinics have been enhanced to 75% for lower- to middle-income patients. On top of the enhanced subsidies, Pioneers can enjoy an additional 50%-off for their subsidised drugs. This move has significantly lowered the cost of subsidised drugs in the public healthcare institutions and widened the gap with prices in private retail pharmacies.

The Ministry of Health will continue to review our policies to ensure that healthcare remains affordable for Singaporeans. For needy patients, they can also apply to MediFund for financial assistance.