Price Controls

Examples of Price Controls in Various Countries

United States

Section 340B of the Public Health Service Act sets price controls for pharmaceuticals purchased by certain government agencies and to certain grantees of Federal agencies. It provides that as a condition for participation in Medicaid, drug manufacturers must sign a pharmaceutical pricing agreement - includeing specific price ceilings - with the Secretary of the Department of Health and Human Services.



The Patent Act of 1987 created the Patented Medicine Prices Review Board PMPRB, which regulates drug prices using a public set of guidelines (see below). To ensure this independence and autonomy, the Act provides no power to the government to direct the Board or to review its decisions and orders. However, decisions of the Board are subject to judicial review by the Federal Court of Canada on jurisdictional or procedural grounds in accordance with administrative law principles.

New Zealand

PHARMAC, the Pharmaceutical Management Agency, is a Crown entity established pursuant to the New Zealand Public Health and Disability Act 2000. PHARMAC is directly accountable to the Minister of Health. The PHARMAC Board consists of up to six members appointed by the Minister of Health. All decisions relating to PHARMAC's operation are made by or under the authority of the Board. In particular, the Board members decide on the strategic direction of PHARMAC and may decide which pharmaceuticals should be subsidised and at what levels, and whether or not special conditions or guidelines are to be applied.

Sweden Japan Spain Netherlands Oman

USTR Documents On Pharmaceutical Price Controls Abroad


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