Swati Maliwal Flags Excessive Profit Margins of Private Pharma Companies in Parliament

New Delhi: Rajya Sabha MP Swati Maliwal on Tuesday highlighted in Parliament that several private pharmaceutical companies are earning profit margins ranging from 600% to 1000% on branded medicines. She stressed that this is not an allegation but a documented finding in a parliamentary committee report.

Maliwal pointed out that the same medicines are available in generic form at 80–90% lower prices, yet patients are charged multiple times more simply for the brand name. “A sick person has no bargaining power,” she said, emphasizing that the compulsory need for medicines is being exploited by these companies.

Health Should Be a Right, Not a Business
“Health is not a commodity; it is a right. The hard-earned income of the poor and middle class should not be diverted to fuel exorbitant profits of pharmaceutical companies,” Maliwal added.

Concerns Over High Costs in Private Hospitals
Earlier, Maliwal had raised concerns about high-cost treatments in private hospitals. Speaking during the Zero Hour in Rajya Sabha, she urged the government to expand facilities in public hospitals, noting that patients often face financial ruin if they visit private emergency facilities.

Generics Replaced with Expensive Medicines
She also criticized private hospitals for prescribing more expensive medicines instead of affordable generics. “Hospitals first ask if the patient has medical insurance, and once this is known, discretionary overcharging begins,” Maliwal said. She added that diagnostic tests are sometimes exaggerated and patients are forced to bear additional costs.

Insurance Claims Often Denied
Maliwal further pointed out that only 12 states have implemented the Clinical Establishments Act, and even Delhi has yet to enforce it. She criticized high insurance premiums that deter people from purchasing coverage and said insurance companies often reject claims for minor issues. She called on the government to strengthen public healthcare facilities to address these systemic challenges affecting ordinary citizens.