FOMCA fully supports the Prime Minister’s efforts towards display of pricing for medicines in his effort towards addressing the issue of the increasing cost of living by empowering consumers to make informed choices by comparing and choosing the best value in their medicine purchase.
Currently, at almost every level, the pricing of medicines is opaque. At the private clinics, the patients after the consultation with the general practitioner gets a big fat bill incorporating consultation fees as well as the price of all the prescribed medicines. He has no knowledge of the actual prices of medicines and whether he is getting the best value for his hard earned money or could he possibly get better value at the pharmacy nearby.
While some private hospitals, are transparent in their pricing of their medicines, others are less so. While certainly transparent pricing for patients admitted may not be feasible, it is certainly possible for patients where patients are being discharged where medicines are being prescribed to be taken after the patient is discharged. With full knowledge of the actual prices of medicines, consumers can make an informed choice to get the best value for their treatment.
This is especially critical for the low-income families who are already facing severe financial pressures. The ability to get the best priced medicines would certainly help patients to reduce their cost of living towards a better quality of life.
There have been arguments that the poor are less likely to use private hospitals and thus more depend on public healthcare. This is not necessarily true. The public healthcare system while trying to do its best to address the medical needs is often overwhelmed by the sheer volume of patients. Often patients have to wait long periods of time for investigation, tests or to see the specialist. Often out of desperation, they may seek treatment for themselves or their loved ones at private hospitals.
Many consumers do not have medical insurance and thus have to pay out of their savings or borrow to pay their medical bills. In fact it has been estimated that only 7% of Malaysians have medical insurance. Patients spent RM 22.6 billion out of pocket payments for healthcare in 2020; this increased to RM 26.6 billion in 2022. Thus many poor and middle class consumers have been forced to seek treatment at private hospitals out of critical need and desperation.
Thus if they could save on affordable medicines it would be a great help in reducing their cost of living.
FOMCA is of the position that the Prime Minster understands the plight of the poor and vulnerable consumers in the purchase of life giving medicines. Transparent display ricing would to some extent help consumers make informed choices to get the best value in their times of sickness and suffering.
If however, the government finds that medicines are being sold at excessive profits causing severe distress and suffering to consumers, then the government should consider price controls as a means of enhancing consumer welfare and well-being.
