Important note: Information in this article was accurate in 2004. The state of the art may have changed since the publication date.
Sunday Times (Johannesburg) - November 7, 2004
The regulations, under the Medicines and Related Substances Control Amendment Act, control the price of medicines from the factory gate to the consumer in order to increase access to affordable medicines.
In May, bonuses, volume discounts and incentives were banned. In June, manufacturers had to establish single exit prices for products excluding discounts and including all costs up to dispensing.
In the same month, the Pharmaceutical Society of South Africa and seven applicants took the health minister to court to have the regulations overturned.
In August, the Cape High Court ruled in favour of the government and the dispensing fee regulations came into effect. The society and other applicants applied for leave to appeal against this judgment and are still waiting to hear the verdict.
Now pharmacists may add on dispensing fees of no more than 26% or R26 for products over R100 to the published single exit price. In response, pharmacists introduced administration fees, which are not regulated. Consumers must pay these fees themselves as they are not covered by medical aids.
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