Introduction

Indian expenditure on health never remained in the back of patients’ and their kiths and kins’ minds, more so when long-term care of chronic and life-critical illnesses is the issue. Chemotherapy for cancer, renal disease treatment, diabetic medication, cardiovascular disease medicines, and respiratory disease medication always consume the lion’s share of out-of-pocket spending, leaving the patient with no penny. A small policy move on drug price or taxation can provide relief of titanic proportions.

Recently, after a long time, a breakthrough has finally come through that can treat millions of patients across the country. The Indian Medical Association (IMA) has filed a plea to reduce the Goods and Services Tax (GST) on nearly 50 life-saving medicines, and the government is seriously considering the petition. If yes, the change would sharply bring down the price of the majority of life-saving medicines, and treatment will become cheaper and more accessible to more people.

Highlights:

• Indian households still carry a high health spending burden.
• Indian households worry about sky-high medical expenses.
• IMA demands reduction of GST on life-saving drugs.
• Goal: make life-saving medicines affordable for patients.

The News Report

IMA members claim the drugs include what is prescribed in treating cancer, kidney disease, cholesterol, tuberculosis, arthritic pain, and other chronic ailments.

NEW DELHI:Nearly 50 lifesaving drugs, like diabetes and blood pressure medicines, will be more affordable since the government is going to slash their Goods and Services Tax, the Indian Medical Association (IMA) said on Wednesday.

Association members said that the top governing body of private physicians has put a list of such drugs before the GST Council and negotiated with the officials for their inclusion in the exempted list.

The draft proposal includes such medicines for cancer, kidney conditions, cholesterol, tuberculosis, arthritis pain, and other such chronic conditions, IMA members have stated. Most such medicines levy 12-18 percent GST currently.

“We have long been requesting it. If it receives a clearance, then it will be a miracle in keeping out-of-pocket expenses of the patients under control,” said IMA national president Dr. Dilip Bhanushali.

Members have said that the body has proposed exemptions for insulin, oral anti-diabetic medications, antihypertensives, cardiotonic drugs, chronic kidney disease drugs, thyroid function drugs, osteoporosis drugs, asthma, and COPD. Exemptions on intravenous immunoglobulins and blood disorder medications such as hemophilia and myelodysplastic syndromes were proposed by the association.

The GST Council is expected to take up the matter in its session. Once cleared, the reduction would bring down the cost of all life-saving medicines that have been runaway costly in recent times, easing the burden on the patient and family following prolonged treatment.

That adjustment in the pipeline also includes cutting tax levels on drugs that save lives from 12 percent to 5 percent and full exemption of some drugs used in the treatment of orphan diseases.

The council was optimistic. We were expecting the government to allow our appeal because the drugs help in curing most of the non-communicable diseases that the Indian population suffers from. The price reduction will help in easing a lot of the burden from the out-of-pocket expenses of the patients,” Dr. Bhanushali stated.

But the association welcomed the initiative to bring down GST on cancer medicines. “It will ease the economic burden on patients undergoing costly therapy such as chemotherapy and immunotherapy,” said Dr. Bhanushali.

Highlights:

• Nearly 50 priority drugs are pending consideration for cutting GST.
• The current GST on most lifesaving drugs is 12–18%.
• IMA demands zero duty for insulin, anti-diabetics, and heart medication.
• Drugs allowed for treating orphan diseases can be exempted in totality.

Analysis of the Proposal

There has been a long-standing appeal by health care associations, doctors, and health care organizations to reduce GST on life-saving medication. The majority of drugs that are prescribed for treating chronic conditions are not optional; they are life-saving.

Now, the GST is imposing 12–18% on the cost of such medicines, an additional burden for patients. Reducing the tax to 5% or a full exemption in some cases might provide greater relief for families to bear the treatment cost.

• Diabetes patients requiring insulin therapy throughout their lives could save a lot of money per annum.
• Chemotherapy or immunotherapy—long and expensive cancer treatments—would have invoices reduced.
• Families suffering from chronic kidney disease or blood disorders would also benefit since the cost of treatment is prolonged.

Highlights:

• GST rebate minimizes the cost of treatment directly.
• Patients with chronic diseases would benefit most.
• Cost-effective medicines ensure better compliance in treatment.

Impact on Patients and Healthcare

• Affordability Boost: Life-saving medicines would get cheaper for patients.
• Access to Treatment: Lower expenditure can prevent stoppage of treatment.
• Control of Chronic Diseases: Chronic disease patients would be best served with reduced expenses.
• Orphan Diseases: Tax relief on rare disease drugs increases the availability of required therapy.
• Improved Public Health: Enhanced affordability equals enhanced control of disease and reduced complications.

Points of Emphasis:

• Cost-effective medicines equal higher compliance with treatment.
• The benefit to most patients is from chronic and orphan diseases.
• Lower overall healthcare burden.

Increased Policy Implications

If cleared, relief in GST will lead to opening the gates of more such relief in GST on health-care products like medical devices and pathological tests. It also shows that government concern for the affordability of health care is on the top of the agenda.

Though a step in the right direction towards reducing GST, experts urge caution, and pharma firms should be permitted to forward the relief to consumers.

Highlights:

• Policy can set the path for broader health-care tax reforms.
• Other sectors like medical devices can do the same in the near future.
• Tracking must be done so that the benefit goes to the patients.

Conclusion

The proposal to slash the GST on 50 life-saving medicines can be a game-changer for patients suffering from life-altering and chronic diseases. The government is slowly showing the willingness, and the IMA has already taken the initiative, so relief in the form of substantial economic benefit is within reach.If this is accomplished, healthcare is made more affordable and accessible, and life-saving drugs are made available to all patients in need. The ball is now in the GST Council’s court, where it can ease Indian families by crores.