The increasing prices of new medicines and high out-of-pocket spending are among the biggest challenges to the Philippine health system.
An interesting overview on how the prices of medicines are established in the Philippines. This document outlines the national guidelines, the framework and criteria, and methodology and processes for setting the maximum retail price of medicines.
The Philippines currently utilizes an eight-nation basket for external-price-referencing divided into two (2) groups: (i) Asian Countries: Thailand, Malaysia, Vietnam, India and Indonesia; and (ii) Developed Countries: United Kingdom, Australia, and, Canada.
The country uses an algorithm process for the selection of medicines subject to pricing regulations, and the Maximum Retail Price (MRP) is determined through external reference pricing plus a regressive mark-up method.