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Home » Economy » Morocco on Track to Lower Drug Prices

Morocco on Track to Lower Drug Prices

The prices of 190 drugs for chronic diseases will soon decrease in Morocco, announced Amine Tahraoui, the Minister of Health and Social Protection, as pharmaceutical costs remain a moot point despite recent reforms

Aymen AlamibyAymen Alami
Jan, 12, 2025
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AMO-Tadamon is for people who can’t pay fees for their medical care

AMO-Tadamon is for people who can’t pay fees for their medical care

Rabat — The prices of 190 drugs for chronic diseases will soon decrease in Morocco, announced Amine Tahraoui, the Minister of Health and Social Protection, as pharmaceutical costs remain a moot point despite recent reforms.  

This is part of an ongoing trend. Recently, 169 other drugs, mainly for chronic conditions, had their prices cut.

Overall, since 2021, more than 5,350 drugs have seen a dip in costs. 

Speaking at the Parliament, Tahraoui said that despite the 2023 reform that governs drug pricing, “prices remain a source of debate and controversy.”

The health minister also pointed out that the production of expensive drugs, combined with the expansion of compulsory health insurance (AMO) for a record nationwide coverage, has put financial pressure on insurance companies.

To address these issues, the government has developed a new strategy to review drug production and distribution costs to align drug prices with the national social protection objectives.

As part of the 2023-2027 national plan, the government wants to make sure everyone, especially those who need it most, can get high-quality, affordable medicine. Tahraoui said it’s important to promote cheaper generic drugs, keep the prices of expensive medicine under control, and support the local pharmaceutical industry.

After the recent tax exemptions, around 4,500 different drugs have already seen significant price cuts, making essential drugs more affordable for people across the country.

Medical insurance troubles 

At the same time, a quarter of Moroccans don’t have medical insurance, according to a report by the Economic, Social, and Environmental Council (CESE). Experts say the number of insured is above global standards.

There’s been big progress in recent years, though. In 2024, 4 in 5 Moroccans reported to have medical insurance. That’s up from less than 3 out of 4 in 2020. Better laws and systems helped make this happen.

Morocco has several insurance plans, and these have expanded since the government made a big push to develop health insurance in 2020. The new reform aims to include everyone –  especially low-income groups – with new systems created to make it easier for people to join. 

AMO-Tadamon is for people who can’t pay fees for their medical care. This plan covers medicine, private doctor visits, hospital stays, and ensures public hospital visits are free. 

AMO for Workers, on the other hand, is for self-employed workers and small business owners, while AMO-General is for anyone unable to register in any of the other plans.

But there remain problems. Out of 8.5 million uninsured, 5 million aren’t signed up. Another 3.5 million are signed up but don’t receive benefits.

Even those insured pay half of their medical costs out of pocket. That’s twice what the World Health Organization recommends. Many skip treatment because it’s too expensive, and they simply can’t afford it.

Meanwhile, some insurance programs are financially struggling. The AMO-Tadamon plan is stable, but others are losing money. For example, the self-employed workers’ plan has a 72 percent deficit.

Additionally, most health spending goes to private clinics, not public hospitals. As private care can cost five times more than public care, this puts pressure on the system’s finances. 

In addition to expanding healthcare plan options, the government has also worked on improving hospitals and making public healthcare more accessible. 

Tags: amine tahraouiAMO systemHealth MinisterMedical Insurance africa
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