pricing of drugs compared neighbouring countries

7 July 2014

Question No. 56

Name and Constituency of Member of Parliament
Ms Foo Mee Har
MP for West Coast GRC

Question:

To ask the Minister for Health (a) whether the same medicines sold in our public hospitals are significantly more expensive than those in neighbouring countries such as Malaysia and Thailand; and (b) if so, how can the price differential be narrowed to make medicines more affordable to Singaporeans.

Answer:

1.                 The cost of goods and services differ across countries for a number of reasons, such as distribution costs, exchange rates, purchasing power of the country and pricing strategy of suppliers.  This similarly applies to medicines, and are factored into the pharmaceutical firms’ pricing of medicines.  

2.                 For the above reasons, the retail prices of medicines in Singapore are generally higher than in some of our neighbouring countries.  To help keep medicines affordable for patients, our public healthcare institutions tender jointly for the majority of their drugs in bulk to enjoy economies of scale.  Savings are reflected in the overall pricing of medicines sold to patients in the public healthcare institutions.

3.                 Subsidies are available for standard drugs, to further lower the cost of medicines for subsidised patients.  These are drugs on the Standard Drugs List (SDL) and the Medication Assistance Fund (MAF).  Some drugs are subsidised at 50% off the non-subsidised prices, other drugs are priced at no more than $1.40 for a week’s supply.  The MAF helps lower- to middle-income patients who require relatively more expensive drugs, such as those for treatment of cancer, with up to 75% subsidy.

4.                 MOH regularly reviews and seeks to improve the affordability of drugs for our subsidised patients.  In April this year, 13 new drugs were added into the SDL and MAF, including those used in the treatment of childhood leukaemia and rheumatoid arthritis.  We are further enhancing drug subsidies for Singaporeans.  From 1 January 2015, lower- to middle-income subsidised patients at the Specialist Outpatient Clinics and polyclinics will receive 75% subsidy, up from the current 50%, for their subsidised drugs.  Pioneers will enjoy an additional 50%-off for their subsidised drugs.

5.                 We 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.