Policy Analysis of Allocating the Subsidized Currency to Medication in Iran and Development of Political Alternatives

The pharmaceutical industry of each country shows the capability of that country in providing health for the society. Medication has always been one of the most important pillars of health due to its effects on health. As a result, production, distribution, and pricing are a special priority of governments. Therefore, the medication subsidized currency allocation policy was formulated and implemented in order to guarantee patients' access to drugs in the conditions of currency shortage and international sanctions against Iran. The objectives of the present study were to analyze the policy of subsidized currency allocation to medication and to present political alternatives in Iran.

The present study is a retrospective health policy analysis using a qualitative research method. Data were collected by using semi-structured interviews with key informants through analyzing policy and legal documents. We also analyzed the data by using framework analysis. To categorize and analyze the findings, we used MAXQDA 11 software.

Results showed that contextual factors, including situational, structural, cultural, and international factors had an impact on all policy-making  processes of  currency allocation for medication. Four political alternatives for the allocation of subsidized currency for medication, we proposed: 1) removing the policy of subsidized currency and paying the exchange rate difference to insurance companies; 2) announcing a new rate for the subsidized currency; 3) paying the total exchange rate difference (selling half of the currency to pharmaceutical industries and the rate difference to consumers); 4) releasing a part of medication currency.

Challenges and negative consequences of subsidized currency have gradually emerged. Before modifying the policy of subsidized currency, the requirements should be reviewed. Developing a detailed and step-by-step road map  via  the participation of influential and interested institutions is  necessary to modify this policy.