(Urgent, Ji Jia Ge No.  2143, November 21, 2000)
To Development and Planning Commissions, Price Bureaus of Each Province, Autonomous Region, Municipal City and Planned City:
This Notice on issues related to the setting or adjustment of the prices of B List drugs of National Basic Medical Insurance (hereinafter "B List drugs") that are not included in the List of the Drugs to be Priced by SDPC, is issued according to the Guidelines for Drug Price Administration issued by SDPC in order to standardize government action in drug pricing, promote efficient and orderly drug distribution, and maintain the integrity of the national drug market.
Article 1: Provincial price bureaus shall gradually assume responsibility to set prices of B Lists drugs. During the transition period, the prices of B List drugs shall be set by provincial price bureaus under the guidelines of the central government. In principle, SDPC shall issue annual guidelines regarding the retail prices of B List drugs.
Article 2: SDPC shall issue guidelines regarding the retail prices of B List drugs according to their generic names. A provincial price bureau shall set provincial ceiling retail prices of B List drugs according to their generic names by adjusting the prices set by SDPC within plus or minus 5%.
Article 3: A provincial price bureau shall set and publish the provincial ceiling retail price within 30 working days after SDPC issues the guidelines for the retail prices of B List drugs, and file the ceiling retail prices with SDPC.
Article 4: In promulgating the guidelines for the retail prices of B List drugs, SDPC shall first provide a draft guideline based on actual research information according to relevant requirements of Regulation for Government Drug Pricing and organize regional price balancing and integration meetings to discuss the draft guidelines before making a final determination.
Article 5: SDPC shall invite relevant local price bureaus with jurisdiction over the important regions regarding drug production and distribution to participate in drug price balancing and integration meetings. In principle, the number of participating regions shall be no less than ten. A price bureau which participates in a regional price balancing and integration meeting shall conduct research and investigate on the prices of relevant drugs, and solicit opinions from relevant government departments and enterprises.
Article 6: Prices of drugs which are added to the B List by a province shall be set by the provincial price bureau according to relevant government pricing methods and procedures and shall be filed with SDPC. If a drug is added to the B List by over 10 regions across the country, and the difference in prices of the drug is relatively large, then SDPC may provide a guideline regarding the retail price of the drug to be implemented in relevant regions.
Article 7: For a B List drug which has been sold on the market, its manufacturer shall not be required to submit an application regarding the drug price for SDPC to set the pricing guideline price or relevant provincial bureau to set the ceiling retail price.
Article 8: Before the sale of a new presentation of a B List drug or a new kind of B List drug, the drug manufacturer shall apply for a price with the provincial price bureau with jurisdiction over the manufacturing site for its evaluation. The provincial price bureau shall submit the application and its evaluation to SDPC, who shall hold a price balancing and integration meeting to study and determine the price of the drug.
Article 9: For independent pricing of a B List drug, the drug manufacturer shall apply for independent pricing to SDPC through the provincial price bureau with jurisdiction over the manufacturing site of the drug. SDPC shall organize the evaluation of the application according to the Regulation of Evaluation of Independent Pricing of Drugs.
Article 10: For regions which fail to observe the above requirements, SDPC shall circulate a notice or explicitly order correction by the relevant government authorities. In serious cases, relevant administrative leaders shall be prosecuted and the authority of provincial price bureaus to approve and publish the ceiling retail prices of B List drugs may be suspended.
Currently, the setting of the prices of B List drugs by provincial price bureaus under the guidance of central government is an important measure to ensure the smooth implementation and transition of drug price reform.. All local governments shall improve their understanding so that a common census can be reached, putting the interests of the whole above everything else in order to maintain the government's authority, the integrity of the national drug market, the orderly distribution of drugs and to facilitate the establishment of basic medical insurance for urban and township employees and the urban and township healthcare reform.