Shanghai’s Sunshine Medical Procurement All-in-One (SMPA) has released a notification concerning the 8th round of the national volume-based procurement (VBP) program. The notification indicates that non-winning bids eligible for the 8th VBP round and successfully put up for online procurement in Shanghai can avoid being labeled as “drugs with higher prices,” which typically require higher out-of-pocket payments (OOP) by patients, if manufacturers voluntarily adjust their prices to be lower or equal to the winning varieties.
Historical Context and Price Adjustments
The concept of “drugs with higher prices” was first introduced during the 5th VBP round when Shanghai released the “Notice on Doing a Good Job in the Fifth Round of National Volume-based Procurement and Use in Our City” in September 2021. These rules marked the first increase in out-of-pocket payments for “drugs with higher prices.” Non-winning same-name drugs eligible for reimbursement in Shanghai but priced higher than VBP winning bids can be procured online after a gradient price reduction or price limit, adhering to the principle of “appropriate price.”
Guidance for Patients and Increased Out-of-Pocket Payments
To guide patients, the proportion of individual out-of-pocket payments would be increased by 10% for essential medicines and Class A NRDL drugs or by 20% for other drugs. This adjustment aims to encourage manufacturers to align their prices with the winning bids, thereby reducing the financial burden on patients and promoting more cost-effective procurement practices.-Fineline Info & Tech
