Govt not to allow knee implants cost rise beyond 10% in a year

The government on Tuesday said the ceiling price of orthopedic knee implants will be monitored to ensure that the cost does not increase beyond 10 percent in a given year. "Though the industry has requested for a 20 percent (10 percent for the year 2018 and 10 percent for the year 2019) increase in the price of knee implants, it was decided to further monitor the price increase of knee implants as per para 20 of the DPCO, 2013 that restricts price increase beyond 10 per cent in a given year. This shall be subject to a review after one year," an official statement said.

The NPPA notified the ceiling price of orthopedic knee implants on 16th August 2017 by invoking extraordinary powers, in public interest, under Para 19 of Drugs Prices Control Order (DPCO) 2013, for a period of one year. Subsequently, the applicability of ceiling prices fixed for orthopedic knee implants was extended for another one year, up to 15 August 2019.

Accordingly, the cost of knee implants was reduced significantly, up to 69 percent, resulting in a notional saving of Rs 1,500 crore per annum to the consumers. The NPPA, in its meeting held on 8 Aug 2019, reviewed the matter. It was noted that there has been increased access due to knee implants becoming affordable. As per the data submitted by manufacturers and importers, an increase of 30 percent in the sales of knee implants has been reported during the period of July 2018 to June 2019.

The knee implant is a non-scheduled medical device/drug for which DPCO, 2013 allows an annual increase up to 10 percent of MRP. However, this was not permitted in 2018.