Shanghai Procurement Platform Offers Price Cut Leeway to Escape ‘High-Priced Drugs’ Tag

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Shanghai’s Sunshine Medical Procurement All-in-One (SMPA) platform has announced a significant policy shift regarding non-winning bids in the 9th round of volume-based procurement (VBP). The notification suggests that drugs which did not secure a winning bid and are eligible for online procurement in Shanghai may be exempted from the “high-priced drugs” classification if manufacturers voluntarily lower their procurement prices to align with or undercut those of their same-name competitors. This voluntary price reduction would apply once the agreed purchase quantity of the winning VBP bids for corresponding drug varieties has been fulfilled. Consequently, non-selected drugs that have voluntarily reduced their prices will not face priority procurement restrictions or related assessments.

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The move is set to alleviate the financial burden on individuals covered by Basic Medical Insurance schemes for urban employees and residents, as well as rural residents, who use “high-priced drugs.” Currently, the co-payment ratio is increased by 10% for National Reimbursement Drug List (NRDL) Category A drugs and by 20% for other drugs, making this policy change particularly impactful for patients relying on these medications.- Flcube.com

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