China creates list of essential medicines

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The government is creating a list of essential medicines which aims to ensure lower prices and adequate supplies for needy patients. It's part of efforts to reform the medical system and reduce high medical fees.

The National Development and Reform Commission and the Ministry of Health released a joint statement on Tuesday as to how the new principle will be implemented.

The government will make a list of essential medicines that can satisfy the priority health care needs of the population. The cost and distribution of these medicines will be regulated by the government. Essential medicines will be widely used in all public health-care institutions at the grassroots level, and will be sold to patients on a non-profit basis. They will also become the medicines of first choice in other health care institutions.

Provincial governments will purchase essential medicines through procurement auctions, and will distribute them to medical institutions and pharmacies. Guideline prices will be established by the Central Government three times a year to ensure affordability for patients. All the essential medicines will be included in the medical insurance system, and patients will be able to enjoy higher refunds than they would with other medicines.

The principle will take effect in 30% of China's community medical institutions at the city and township level this year, and will expand to the entire country by 2020.