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COST-BENEFIT ANALYSIS OF THE MEDICINES PRICE MECHANISM

Regulatory Impact Analysis (RIA) is a systematic process of identifying and assessing the likely impact of the proposed regulation using a consistent analytical method, such as cost-benefit analysis (CBA). RIA is a requirement by Malaysia Productivity Corporation (MPC) for any agencies intended to implement changes in the regulation. The output of RIA is intended to inform policymakers on the efficiency and effectiveness of all the available options and determine the optimal design of the proposed regulation. Thus, Pharmaceutical Services Programmed (PSP) was committed to conducting RIA on implementing the Medicines Price Mechanism (MPM) intended to regulate medicines prices in the private sector under the Price Control dan Anti-Profiteering Act 2011 (Act 723). Following that, PSP, in collaboration with the MPC, has conducted a CBA for implementing MPM. The CBA aims to measure the economic impact of implementing the MPM over 15 years on the affected stakeholders, namely the government, consumers, pharmaceutical industry, private healthcare service providers and insurance providers.
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