National List of Essential Medicines

Why in the News?

The Government has released 384 medicines under the National List of Essential Medicines (NLEM). 

Key Points:

About

National List of Essential Medicine (NLEM) 

• The National List of Essential Medicines was first formulated in 1996.
• NELM is created to rationalise the use of limited resources for drugs needed the most by the greatest number of people. 
• Prices of medicines included in NLEM are controlled by the Centre, ensuring lower prices. 
• It is a dynamic list that takes into account any changing profile of diseases, newer drugs available on the market, and changing treatment protocols.
• Drugs deleted from the NLEM include medicines banned in India and those having reports of concerns on the safety profile.
• In NLEM, the medicines are categorized based on the level of the healthcare system as  P- Primary; S- Secondary and T- Tertiary.
• Based on this list, the NPPA (National Pharmaceuticals Pricing Authority) will decide the ceiling prices.

Criteria for adding Medicines in NELM:

• They should:
• be useful in diseases which is a public health problem in India
• be licensed/ approved Drugs Controller General (India) (DCGI)
• have proven efficacy and safety profile based on scientific evidence
• be comparatively cost-effective
• be aligned with the current treatment guidelines
• recommended under National Health Programs of India.

Benefits

• Several antibiotics, vaccines and anti-cancer drugs are set to become more affordable with their addition to the list.
• helps in optimum utilisation of healthcare resources and budget; and drafting of pharmaceutical policies.
• (NLEM) plays an important role in ensuring accessibility of affordable quality medicines at all levels of healthcare.
•  boost to cost-effective, quality medicines and contribute towards a reduction in Out of Pocket Expenditure.