08 Jul No to Pharmaceutical Freebies
No to Pharmaceutical Freebies – Today Current Affairs
Why in news?
The Supreme Court has ruled against doctors receiving gifts from pharmaceutical corporations.
Today Current Affairs
What is the basis of the judgement?
In the matter of M/s Apex Laboratories Pvt. Ltd. v. Deputy Commissioner of Income Tax, Large Taxpayer Unit-II, the business was providing doctors with free samples of Zincovit, a health supplement it was producing.
The Supreme Court denied Apex Laboratories’ request for a special leave to deduct the cost of gifts given to physicians. The Hindu Analysis
The Madras High Court’s ruling was upheld by the Bench, which stated that it is “obviously illegal by law” for pharmaceutical companies to give freebies to doctors.
The Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002, were referenced by the court and relied upon.
According to Section 37(1) of the Income Tax Act of 1961, doctors cannot deduct the gifts they receive. The Hindu Analysis
The court determined that it is immoral to have prescriptions influenced by the promise of freebies in cases when patients have put their trust in doctors.
The Court was aware that the price of such freebies is added to the price of medications sold, raising their costs and creating a vicious cycle that harms the public.
How does the United States fare? The Hindu Analysis
The Court took note of a report entitled “Savings Available with Full Generic Substitution of Multiple Source Brand Drugs in Medicare Part D” that was published by the US Department of Health and Human Services Office.
It was said that if generic identical medications had been prescribed, the beneficiaries may have saved more than 600 million dollars in out-of-pocket expenses.
The Centers for Medicare and Medicaid Services must receive reports from manufacturers of drugs, devices, biologics, and medical supplies on three major categories of payments or transfers of value, including meals, travel reimbursements, and consulting fees. This reporting requirement is mandated by the Physician Payments Sunshine Act 2010 (Section 6002 of the Affordable Care Act, 2010). The Hindu Analysis
These include out-of-pocket costs for speakers, travel, gifts, honoraria, entertainment, charitable contributions, educational grants, research grants, etc. that are paid for by manufacturers.
What is still unresolved? The Hindu Analysis
The retail price conundrum The sale of medications at Maximum Retail Price, or MRP, is the area of law left unrecognised in this decision.
Despite the existence of the Drug Price Limit Order and the Drugs and Cosmetics Act, very little is done to control the price at which medicines are sold.
Their so-called research and development costs are not being properly investigated, nor are their profit margins being kept within the permitted range.
What is still unresolved? The Hindu Analysis
The retail price conundrum The sale of medications at Maximum Retail Price, or MRP, is the area of law left unrecognised in this decision.
Despite the existence of the Drug Price Limit Order and the Drugs and Cosmetics Act, very little is done to control the price at which medicines are sold. The Hindu Analysis
Their so-called research and development costs are not being properly investigated, nor are their profit margins being kept within the permitted range.
What should we do next? The Hindu Analysis
The law must be changed to require drug manufacturers to offer their products at a verified actual cost that also includes an acceptable profit margin for each item.
The pricing must be the same everywhere around the nation.
Classified life-saving medications should only be sold at cost or even at a discount. The Hindu Analysis
This ruling ought to be discussed and extended to other immoral actions and the spending of tax dollars.
Financial tools, such as income-tax provisions, can be used to prevent such expenditures from occurring and tax the same or taxable income in the hands of recipients, as in the case of assurances and declarations made during election campaigns by political parties by providing free laptops, waived electricity fees, food grains, forgiveness of loans, etc.
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Plutus IAS Daily Current Affairs Hindi med 8th July
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