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A report revealed that medicines cost 5 times more in Argentina than in Spain - Infobae
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Un informe reveló que los medicamentos cuestan 5 veces más en Argentina que en España
El Observatorio de Costos de la Salud de la UAS alertó sobre las barreras de accesibilidad que generan los altos precios de los remedios en Argentina. El análisis compara el mercado local con el de otros países, destacando la necesidad de abordar este problema desde la política pública
www.infobae.com
October 17, 2024
The UAS Health Costs Observatory warned about the accessibility barriers generated by the high prices of medicines in Argentina. The analysis compares the local market with that of other countries, highlighting the need to address this problem through public policy.
By Matias Barberia
Private health companies have highlighted the lack of competition within the local pharmaceutical industry (Illustrative Image Infobae)
Drug prices in Argentina remain one of the major obstacles to ensuring access to health, according to a recent report by the Health Costs Observatory of the Argentine Health Union (UAS) . The document highlights that, despite having a robust pharmaceutical industry, drug prices in the country are considerably higher than in other comparable economies , which generates serious difficulties for patients and a significant burden on the health system in general.
According to the UAS, the price difference with other international markets is substantial, which restricts the ability of Argentines to access essential medicines. The report specifically mentions the case of Metformin, a frequently used drug to treat diabetes, whose price in Argentina is $34,517, while in Spain it costs only 2.90 euros (around $4,350) . This disparity is also visible in other products, such as Diclofenac 75, which sells for $20,455 in Argentina, while in Spain it costs 2.50 euros, equivalent to about $3,750 .
The price differences coincide with a survey carried out weeks ago by Infobae . In it, the price gaps detected exceeded 1,000% in some cases .
These figures reflect a trend that, according to the analysis, places Argentina at a disadvantage compared to other countries with similar economic characteristics. The comparison with Spain is especially relevant, since both countries have a strong pharmaceutical industry. In Spain, there are 174 industrial plants dedicated to the production of medicines, while Argentina has 190 , of which 160 are nationally owned. However, this productive capacity has not generated a drop in prices in the local market, which shows a disconnect between the development of the industry and accessibility for consumers.
An expanding industry, but with no impact on prices
The UAS report highlights that, despite having a solid pharmaceutical industry , the development of the sector does not translate into lower costs for consumers. Argentina is distinguished by being one of the countries with the largest number of drug production plants in the region , which should generate a competitive advantage in terms of price and availability. However, this does not happen. According to the document, the commercial strategies of pharmaceutical companies and the relative lack of competition within the local market have caused prices to remain high , limiting the population's access to the treatments they need.
Furthermore, it is pointed out that this situation creates accessibility barriers that are increasingly difficult to overcome for the most vulnerable sectors of society, which contributes to the deterioration of the health system as a whole. The comparison with Spain shows that, although both countries have considerable productive capacity, in Argentina the costs of medicines are still considerably higher.
Prices above inflation and the impact on private health
The sustained increase in drug prices in Argentina has exceeded the inflation rate in several periods, further exacerbating the accessibility problem. The UAS analysis shows that, between January 2017 and September 2024, the cost of medical products and health equipment increased by 9,904.1%, a figure that is well above the general inflation of the same period (7,076%) and the increase in prepaid health insurance fees (6,425.2%).
This trend affects not only patients who depend on the public health system, but also those who use private services. According to the report, although the State has sometimes managed to reduce drug prices through centralized purchases, such as those made by PAMI, these reductions in the public sector often translate into higher costs for social security and prepaid health insurance companies. In this way, users of the private system end up absorbing the increases in costs , which negatively affects their ability to pay and access to health.
The impact of these increases is significant. According to the data presented, spending on medicines within the private health system currently represents 40% of total financial resources, a proportion that a decade ago did not exceed 20% . This increase in costs is eroding the sustainability of the system and aggravating access barriers, in a context where the medicalization of the population has also increased.
Claim for public policies
The UAS report suggests that the situation of drug prices in Argentina demands intervention from public policies. It argues that it is essential to have an approach based on objective data, which allows identifying the structural causes behind these increases and developing strategies to reverse the situation. Although the pharmaceutical industry in Argentina has proven to be competitive in terms of production, the lack of competition in the domestic market and regulatory barriers are contributing to prices remaining out of reach for many.The analysis also highlights that the increasing medicalisation of the population, together with a tendency towards overprescription of drugs, has exacerbated the problem. In many cases, treatments are observed to be prescribed that do not have a favourable cost-benefit ratio , which further aggravates the financial burden on the health system.
In this context, the UAS stresses the importance of adopting measures that not only address price reduction, but also improve the population's accessibility to medicines. The creation of policies that encourage greater price transparency, as well as the promotion of effective competition in the pharmaceutical market , are some of the solutions that, according to the report, could help mitigate this problem.
