Title
Maximum Drug Retail Prices for Key Medicines EO 821
Law
Executive Order No. 821
Decision Date
Jul 27, 2009
Gloria Macapagal-Arroyo's Executive Order No. 821 establishes Maximum Drug Retail Prices for essential medicines addressing major health concerns, aiming to enhance access to affordable healthcare and reduce financial burdens on families.

Law Summary

Criteria for Setting Maximum Drug Retail Prices

  • Focus on public health priorities targeting diseases with high morbidity and mortality.
  • Addressed drugs with high international price differentials.
  • Consideration of drugs with limited competition (lack of generics or market access).
  • Drugs where innovator products are most expensive yet widely prescribed.
  • Additional conditions under Section 19(2) of RA 9502 and other relevant parameters.

Stakeholder Consultation and Voluntary Price Reductions

  • Inclusive consultation process involving stakeholders, academic institutions, and Advisory Council for Medicine Price Regulation.
  • Pharmaceutical companies voluntarily reduced prices by at least 50% for sixteen (16) priority medicines.
  • Additional 10%-50% price reduction commitments for twenty-two (22) other drugs outside the original list.
  • Price reductions effective from August 15, 2009, fully implemented by September 15, 2009.
  • Only five original drugs non-compliant with proposed MDRP rates.

Imposed Maximum Drug Retail Prices (MDRP)

  • MDRPs prescribed for specific active ingredients and their pharmaceutical forms.
  • Drugs covered include anti-hypertensive (e.g., Amlodipine), anti-cholesterol (e.g., Atorvastatin), antibiotics/antibacterials (e.g., Azithromycin), and anti-neoplastics/anti-cancer drugs (e.g., Cytarabine, Doxorubicin).
  • Detailed ceiling prices listed per dosage strength and form.

Scope and Applicability

  • Applies to all BFAD-registered medicines listed that are available in the market.
  • Covers retail outlets, including drugstores, hospitals, HMOs, supermarkets, and similar establishments.
  • Manufacturers, traders, and importers bear price differential costs arising from the Order.
  • No entity may sell or demand payment exceeding MDRP.
  • Extends to government agencies, offices, and instrumentalities for procurement, reimbursement, and drug dispensing.
  • MDRP serves as price ceiling for procurement by national and local government units, government hospitals, Specialty Centers, Department of National Defense and Philippine National Police facilities, GOCCs, and government-funded entities like PCSO and PAGCOR.
  • Sets ceiling for reimbursement by Philippine Health Insurance Corporation, Social Security System, Government Services Insurance System, and related entities.

Implementation Provisions

  • Department of Health (DOH) tasked to establish policies and systems for full enforcement.
  • Bureau of Food and Drugs (BFAD) mandated to fast-track registration processes for listed drugs (15 days upon application, with decision within 90 days).
  • Government-owned media required to assist DOH in information dissemination concerning MDRP.
  • All government agencies, including GOCCs and GFIs, must support implementation, enforcement, dissemination, and monitoring.

Violations and Circumvention

  • Any actions that circumvent or violate the MDRP Order will be dealt with accordingly, though specific penalties or sanctions are not detailed in the Order.

Review Mechanism

  • DOH to review the list of medicines and MDRPs three to six months after effectivity and thereafter as needed.

Transition Period

  • From issuance to August 15, 2009 designated as transition to manage packaging, labeling, and disposition of inventory.
  • Full and strict MDRP enforcement starts on August 15, 2009 regardless of inventory status.

Repealing Clause

  • Revokes or modifies any prior executive issuances, orders, rules, or regulations inconsistent with this Order.

Effectivity

  • Requires immediate publication in two newspapers of general circulation.
  • Takes effect on August 15, 2009.
  • Signed by the President and Executive Secretary on July 27, 2009.

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