Abstract

OPINION article Front. Pharmacol., 13 December 2013Sec. Drugs Outcomes Research and Policies https://doi.org/10.3389/fphar.2013.00153

Highlights

  • Total health care costs can be divided into two major components: cost of medicines and other costs

  • In the coming 5 years there will be an enormous increase in various health disorders thereby increasing the healthcare costs geometrically (National Commission on Macroeconomics and Health Ministry of Health and Family Welfare Government of India, 2005)

  • Many loopholes have been cited in the DPCO (First Post – India, 2013; Rajagopal, 2013; Venkiteswaran, 2013)

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Summary

Introduction

Total health care costs can be divided into two major components: cost of medicines and other costs. We would like to highlight the cost of medicines as a separate chunk because, the average Indian household may spend about 50% of their total health expenditures on medicines alone. According to the National Sample Survey (NSS) for the year 1999–2000, in rural India, the share of drugs in the total Out of Pocket expenditure (OPP) was estimated to be nearly 83%, while in urban India, it was 77% (NPPP, 2011).

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