Pharma Can Address Africa’s Medication Affordability Challenge
Pharma companies have options for introducing PAPs to Africa.
In recent years, the rising cost of prescription medications has become a major concern for patients worldwide. With many patients struggling to afford essential medications, quality of life has decreased and health risks have increased.
In Africa, this problem is even more acute where the average middle-class patient pays 5x to 7x more as a percentage of their income for medication than elsewhere in the world. Whereas pharmaceutical companies have taken steps to address medication affordability in other part of the world, however, throughout Africa such programmes lag behind.
Below, we highlight a few Patient Assistance Programmes (PAPs) that have been implemented elsewhere as well as highlight the one non-financial option that pharmaceutical companies can employ to improve medication affordability.
DISCOUNT CARDS AND COUPONS
Some pharmaceutical companies provide discount cards or coupons for their medications. These can be presented at the pharmacy to reduce the out-of-pocket cost for patients, making the medications more affordable.
Manufacturers could introduce discount systems at most chain pharmacies. Yet, patients with affordability issues have their prescriptions filled at more accessible, community pharmacies located in their neighbourhoods where a formalised discounting system requires technical implementation.
CO-PAY ASSISTANCE PROGRAMMES
Much like discount cards and coupons, co-pay assistance programmes aim to reduce the amount patients pay out-of-pocket for their medications. Pharmaceutical companies may offer financial assistance to cover a portion of the co-payment or co-insurance costs.
With most outpatients prescriptions (80%+) paid out-of-pocket, discount cards and coupons are likely to be a better option in the near-term.
FLEXIBLE PAYMENT PLANS
Some pharmaceutical companies work with patients directly to establish flexible payment plans. This can help individuals pay for the cost of their treatment over time and not worry about sourcing their medications week-to-week.
Most chronic illness medications are bought on a weekly basis and therefore, many patients would keenly explore flexible payment options. With mobile money options, payment collection can be easier. However, caution is warranted as payment delays and/or missed payments could pose a challenge.
GENERIC ALTERNATIVES
Pharmaceutical companies sometimes produce a local-brand generics of their own branded medications to offer a more affordable alternative. Others license their patented formulations to local pharmaceutical manufacturers so they can continue generating a return from their innovation while ensuring certain geographies can afford their medications.
Of all the programmes listed here, this could be the easiest to implement in Africa. Licensing, in particular, could also be a good way to mitigate some of the patent-related, legal loopholes that are sometimes exploited in Africa.
CONCLUSION
The pharmaceutical industry plays a crucial role in a healthcare ecosystem and its efforts to make medications more affordable are critical to a health system’s effectiveness. Although challenges exist, only a concerted effort by drug manufacturers, either directly or through partnerships, can help address medication affordability throughout Africa. After all, drug manufacturers are best rewarded when patients are able to live healthier, more productive lives.