Pricing of medicines in Mongolia
In Mongolia, the regulation of medicine prices is a crucial aspect of healthcare policy, impacting access to essential treatments and the overall functioning of the healthcare system. With a rapidly evolving healthcare landscape and increasing demands for quality healthcare services, the Mongolian government has implemented various measures to ensure the affordability and accessibility of medicines for its citizens. The pricing policy for medicines in Mongolia is designed to strike a balance between promoting innovation in pharmaceuticals, ensuring fair competition among manufacturers and distributors, and safeguarding the affordability of medicines for all segments of society. This dynamic policy framework reflects Mongolia’s commitment to enhancing public health outcomes while navigating the complexities of the global pharmaceutical market.
Within the framework of the National Medicine Policy (2014), Mongolia aims to supply the population with a diverse range of highly effective, safe, and quality medicines. In terms of price, the following strategies are implemented:
1. Promote the use of generic medicines and implement a strategy to substitute brand-name medicines with generic ones;
2. Establish a price database and disseminate impartial and accurate information on medicines costs to healthcare professionals and consumers;
3. Impose price control or limit on the price of essential medicines;
4. Enhance the licensing system for pharmaceutical supply entities to foster competition and lower medicines prices.
The Policy’s implementation span extends from 2014 to 2018; nevertheless, it continues to be effective, with no additional policies currently enacted.
Further as outlined under the Law of Mongolia on Medicines and Medical Devices (2010), the Government of Mongolia establishes the maximum prices for medications that are listed as essential medicines and orphan drugs. According to the most recent list of “Types of essential medicines, their price ceilings, and discount rates to be provided from the Health Insurance Fund”, there are 590 types of medications priced between MNT 40 and MNT 123,000, with discounts ranging from MNT 12 to MNT 86,100.
A temporary inspection committee has been established under the Resolution No. 60 of the State Great Khural of Mongolia (the Parliament), dated June 30, 2023, to scrutinize the factors contributing to the rise in medicines prices. The Committee is undertaken to investigate the price, availability, purchasing power, and pricing structure of medicines in Mongolia, along with identifying the underlying reasons and conditions leading to the escalation of drug prices. The Committee is currently in operation and conducts inspections within the following frameworks:
1. Approval of the essential drugs list, current status, and challenges.
2. Quality standards, safety measures, and assurance protocols for essential drugs.
3. Investigation into the underlying causes and circumstances driving the price surge of essential medications in the market.
4. Accessibility of essential drugs and associated challenges.
5. Proposals for enhancing Mongolia’s drug inspection framework and optimizing inspection procedures for greater efficacy.
According to the Medicines and Medical Devices Regulatory Authority, Mongolia imports over 3,400 types of drugs while domestically producing about 1,000 types. As of March 16 of the previous year (2023), Mongolia has registered a total of 4,204 types of drugs, with imports accounting for approximately 80 percent. Moreover, around 220 organizations with special licenses for drug importation are currently active in the country.
In summary, essential medicines are subject to price control or limit in order to ensure affordability to the general public. In addition to this policy, Mongolia endeavors to sustain lower prices and a wide range of medication options by fostering competition among pharmaceutical suppliers.
References:
1. “The Law of Mongolia on Medicines and Medical Devices”
https://legalinfo.mn/mn/detail/85
2. “The Law on Health”
https://legalinfo.mn/mn/detail/49
3. National Medicine Policy (2014)
https://legalinfo.mn/mn/detail/10736
4. Appendix of Resolution No. 11, dated July 4, 2022, by the National Health Insurance Council, “Types of essential medicines, their price ceilings, and discount rates to be provided from the Health Insurance Fund”
5. Resolution No. 60 of the Great Khural of Mongolia, dated June 30, 2023
