In a first for India, Goa to negotiate lower prices for life saving therapies

Panaji: In a move aimed at giving people greater access to high-cost medical treatment for cancer and rare diseases, state govt has rolled out an innovative pricing policy for life-saving therapies.

Under the policy, govt will procure drugs, medical equipment, and diagnostics from pharmaceutical companies at a lower negotiated price from the listed price, thus enabling budget allocation to cater to more patients or support a longer duration of therapies.Health minister Vishwajit Rane said on Wednesday that Goa govt is the first in the country to adopt this policy framework, which enables confidential pricing agreements between govt and pharmaceutical innovators.

The rollout is likely to begin with lung cancer treatment. Innovative therapies for diseases like cancer, rare genetic disorders, and autoimmune conditions can cost upwards of Rs 50 lakh per year, making them difficult for patients, he said.“Goa’s adoption of this pricing policy is a vital and timely step to advance health equity in the state. This value-based approach to pricing will improve access for patients and marks a new era focusing on helping more patients,” said Rane.

This new innovation will prove beneficial to Goa, which is in the upper quartile of the list of highest cancer incidence rates in the country. The state also sees around 1,500 new cancer patients every year, which is set to increase by 5% each year, with the most common cancer being breast cancer, accounting for more than 300 annual cases, followed by oral cavity cancer, which accounts for 20-25% of all cancers in Goa.

The healthcare system needs to be better equipped to handle the growing burden of cancers and rare disease cases, he said.The policy is aimed at meeting the specialised drug/equipment requirements of Goa at a reduced cost, and its scope is restricted to proprietary drugs/equipment currently being purchased by GMC and the directorate of health services through the regular tendering process. However, if any new patented drug/equipment is required to be added to the list of drugs/equipment already approved, then based on the recommendation of the committee, the public health department will take approval from the finance department before adding such new drugs and equipment to the list of items covered under the policy.Under the policy, a committee chaired by the additional/joint secretary of health and comprising the GMC dean, director of health services, and pharmacy heads and in-charges of DHS and GMA will be constituted to recommend appropriate pricing under this policy for approval by govt. The committee will also be empowered to negotiate with companies to discover the best rate for the patented drugs/equipment after signing agreements.

The list of drugs/equipment covered under the policy shall then be notified with the approval of the finance department.