Background

Health care is central to the concept of development and that a health policy of conscious intervention through public agencies is required in order to reach certain basic health objectives. In order to achieve these health objectives provisions for the basic requirement of preventive, promotive and curative health care services must be top priority.

An essential component of a health policy includes measures to promote the rational use of drugs and ensure the availability of medicines of adequate quality at a reasonable price. To date the cost of medicines in the Philippines remains hign and is even higher by 40% to 70% compared to other ASEAN countries. Moreover, our budget for drugs and medicines is too small to procure sufficient quantities of low-cost, essential drugs for the population in need.

In 23 July 2001, H.E. President Gloria Macapagal-Arroyo made a commitment to lower the prices of drugs and medicines frequently bought by the poor by 50%.

What is GMA 50%?

GMA 50 is the name of the Department of Health (DoH) undertaking to effect the SONA pledge of President Gloria Macapagal-Arroyo. The primary goal of the project is to ensure that affordable, high quality, safe and effective drugs and medicines are always available, especially to the poor.

How does GMA 50 intend to attain its objective?

The strategies that GMA 50 will employ are:

A. Short-term (2001 SONA - 2002 SONA)

1. Continue the importation of high quality, safe, effective and affordable drugs and medicines for as long as the prices in the country remain high.
   
2. Expand, as appropriate the list of drugs and medicines for importation. The list will contain essential drugs needed to treat the prevailing causes of morbidity and mortality.
3. Increase the number of outlets. Initially, the outlets will be limited to public health facilities i.e., DoH and LGU retained hospitals, Botika ng Barangay, and NFA rolling stores. However, initial meetings with private retail outlets are being conducted to draw up the guidelines for their involvement.

B. Medium and Long-term (SONA 2002 and beyond)

1. Promote the use of Generic drugs and medicines.

   Basically, generic counterparts of branded drugs are far lower in prices. However, generic product in the country has very low acceptability to the medical practitioners and general public, as reflected in the sales and use. There is a need to ensure the quality, safety and efficacy of these products through regulations and other measures.

2. Ensure continuous supply of high quality, safe, effective and affordable drugs and medicines, whether imported or locally manufactured. (i.e.Toll Manufacturing for selected drugs and medicines, the PITC to procure for government health facilities, encourage local production, etc).
3. Develop reimbursement scheme for medicines with PhilHealth (Reference price for 100 most commonly needed/claimed drugs and medicines, PHIC to reimburse Generic drugs, etc).
4. Work with the pharmaceutical industry/organization/companies for them to reduce significantly the prices of drugs and medicines.
5. Work with the local retail industry for them to pass on to the consumers the low price of drugs and medicines, and
6. Wage war versus substandard drugs.

Who are involved?

Reducing the prices of drugs and medicines requires the cooperation and collaboration of many organizations, both private and public. As of today, the major players are:

A. Public

1. Department of Health

1. a) Bureau of Food and Drugs
   b) Philippine Health Insurance Corporation

2. Department of Trade and Industry
   

   a) Philippine International Trade Corporation
   b) Philippine Health Insurance Corporation

3. Philippine Charity Sweepstakes
4. National Food Authority
5. Local Government Units

B. Private

1. Association of Drug Industries in the Philippines
2. Philippine Healthcare Association of the Philippines
3. Chamber of Filipino Pharmaceutical Manufacturers and Distributors
4. Filipino Drug Association
5. Generics Association of the Philippines
6. United Laboratories, Inc.
7. Drugstore Association of the Philippines

What have we accomplished so far?

What needs to be done?