8 February 2005
The Department of Health welcomes the decision by one of the main opponents of the medicine pricing regulations to comply with these regulations aimed at making medicines more affordable to all South Africans.
New Clicks, which owns a chain of pharmacies across the country, confirmed in the advert published by the Sunday Times (07 February 2005) that all their pharmacies are complying with the medicine pricing regulations. The advert says that at Clicks and Hyperpharm Discount Pharmacies "whether you pay cash, by credit card or via your medical aid, we still only charge 26% or a maximum of R26 on each prescription item. There are no hidden costs."
New Clicks' decision follows a protracted debate as to whether government regulations that limit the dispensing fees charged on medicines are effective. The regulations cap the dispensing fee to the maximum of 26% for a medicine with a single exit price (manufacturer's price) of below R100 and R26 for a medicine with a single exit price of over R100.
The Constitutional Court will on March 15 hear an application by the Department of Health for a leave to appeal against the December 2004 decision of the Supreme Court of Appeal that set aside these regulations.
New Clicks is part of a group of pharmacies that took government to court opposing these regulations. The Department of Health has maintained a strong view, supported by its senior legal counsel, that the regulations are effective pending the decision of the Constitutional Court on the matter.
New Clicks has taken a very responsible decision that is in the best interest of consumers and the general public that desperately need access to affordable medicine. New Clicks joins a large group of pharmacies such as Dis-chem, Pick 'n Pay Hypermarket Pharmacies, Shoprite Medi-rite Pharmacies, Van Heerder Pharmacies Group and other individually owned pharmacies that are generally complying with the regulations.
We call upon all other opponents of these regulations to follow the exemplary route taken by New Clicks and comply with the current dispensing fees, as they are effective in terms of the Medicine and Related Substances Act. We urge consumers to use pharmacies that are complying with the regulations and not to pay unjustified additional fees that may be charged.
Issued by: Department of Health
Enquiries: Sibani Mngadi 082 772 0161 or Charity Bhengu 083 679 7424