Government Regulation Of Drug Prices In China Legal Issues

Since the beginning of the founding of the PRC, our country's drugs price has experienced full control of price, free fixed price and tightening control of price. Currently, the appropriate intervention for the price of drugs is the main ideas of our government and also the international drug market's trend. Facing the situation of the rising unceasingly of drugs price, government mainly formulates drug price and cuts drugs price to control the price in a low level, but the problem of difficult and expensive to get cure and other series of social problems have not been satisfactorily resolved. This paper uses the law theory of empirical research, comparative studies and historical research to demonstrate. This paper analyses that medicine is a kind of public goods which has significant impact on social public interest ,and it's price should be supervised an managed by government. This paper importantly analyses government's legal status and the establishment of power and duty when government carries out supervision and management. Then, the government proposes specific legal measures of improving government's supervision and management to drugs price. The full text is divided into four parts:In the first par of my paper, according to analysis of the public goods' characteristics of drugs , I specified drugs ,one kind of particular commodity, have important influence to all people' life and health. And the current dual malfunctions of market and government cause our country's drugs price market's order to be chaotic and the social public interest to be threatened seriously. The government, as the representative of social public interest', has duty to protect public interest and maintenance social economic order. All of these constituted the necessary factors of government carrying on supervision and management of drugs price.In the second part, according to the method of empirical analysis, I analyzed the current situation of our country's supervision and management of drugs price. Because of the defects of the supervision's legislation, scope, approach and the regulatory mechanism of supervisory organization, caused our country's drugs price to be emptily high.In the third part, for the supervision and management's status of drugs price, I carried on a probable analysis to the object's legal status and setting of power and obligation. The independence of regulatory bodies is the necessary precondition of the regulatory bodies giving full play to its functions. According to comparative analysis of foreign countries' regulatory bodies of drugs price, I specified the importance of building independent regulatory bodies in our country. In order to strengthen the legal basis and the implementation of supervision when the regulatory bodies carrying on supervision and management, I also unified the theory and the practice to specifically demonstration of six powers and three obligations.In the last part, I improved specific legal measure of supervision. This part based on the third part for a theory foundation and responded to the second part. Then I proposed specific legal measures to problems to be resolved from the choice of legislative model, improving pricing mechanism and restraint mechanism for regulatory bodies. These measures also enhanced the government's regulation of drug prices supervision. I separated the restraint mechanism for regulatory bodies as a single section, on the one hand in order to highlight the importance of this section, on the other hand, I hoped the interpretation of this section would have well effect on the supervision and management of drugs price adjusted by market.