National List of Essential Medicines
Also called: NLEM · Topic: Human Capital: Education, Health and Demographic Dividend · NCERT: Beyond NCERT
Meaning
The National List of Essential Medicines (NLEM) is the Health Ministry's (MoHFW's) list of medicines that India needs most for its main health problems. The list is prepared on the advice of the Standing National Committee on Medicines (SNCM), a panel of experts. NLEM 2022 has 388 medicines in about 900+ formulations. A formulation is a medicine in a particular strength and form, such as a 500 mg tablet or a syrup.
The list matters because NLEM medicines are placed in Schedule-I of the Drugs (Prices Control) Order (DPCO), 2013. This makes them scheduled drugs. For these drugs the National Pharmaceutical Pricing Authority (NPPA) fixes a ceiling price, which is the highest price a seller may charge. Ceiling prices are revised every year in line with the Wholesale Price Index (WPI). In this way the list keeps the most needed medicines affordable.
Example
Say a common medicine is on NLEM 2022. NPPA then fixes a ceiling price for it, and no chemist may sell it above that price. A medicine that is not on the list is a non-scheduled drug. Its company sets the price and may raise the MRP by at most 10% in 12 months. Many costly anti-cancer drugs fall in this group.
Don't confuse with
- NPPA: NPPA fixes and enforces drug prices and is under the Ministry of Chemicals & Fertilizers. The NLEM only lists the medicines, and it comes from the Health Ministry (MoHFW).
- Jan Aushadhi (PMBJP): This scheme sells cheap generic medicines through its own stores. The NLEM is a list that decides which medicines come under price control.