Health Department Sets 2.88% Single Exit Price Increase for Registered Medicines
Brought to you by SAnews: The Department of Health has implemented an extraordinary 2.88% increase to the Single Exit Price (SEP) for all registered medicines listed on the national database, effective 1 October 2026.
In terms of section 22G of the Medicines and Related Substances Act, No. 101 of 1965, read with the regulations relating to a transparent pricing system for medicines and scheduled substances, the Single Exit Price is the sole price at which a manufacturer or importer may sell medicines to private sector buyers, including retail pharmacies, dispensing practitioners, and private hospitals. The statutory price cap does not apply to state procurement.
The extraordinary price adjustment applies across all registered medicines and related pack sizes listed in the national database as of 30 September 2026. According to the Department, the adjustment responds to domestic and geopolitical cost pressures impacting pharmaceutical manufacturing, input costs, and supply chain continuity, balanced against patient affordability and medical scheme tariff stability.
Key statutory aspects of the price adjustment include:
- Applicable rate: A uniform 2.88% ceiling adjustment applied to the SEP of affected products.
- Effective date: 1 October 2026.
- Eligible scope: All medicines and associated pack sizes registered and listed on the national database as at 30 September 2026.
- Channel restriction: Mandatory for all private sector supply chains; excluded from state procurement transactions.
What this means for you, your business, or your clients
- For yourself: Expect an adjustment of up to 2.88% in out-of-pocket costs and co-payments on prescription and pharmacy-purchased medicines in the private health sector from 1 October 2026.
- For your business: Pharmaceutical manufacturers, distributors, private hospital groups, and community pharmacies must adjust their billing systems, inventory valuations, and dispensing systems to reflect updated SEP pricing schedules effective 1 October 2026 to avoid unlawful over-recovery under Act 101 of 1965.
- For your clients: Corporate clients operating employer-funded health plans and medical scheme administrators must review their medicine formulary limits, benefit options, and claim-reimbursement thresholds against the updated SEP schedule.
Originally published at https://www.sanews.gov.za/south-africa/health-department-sets-increase-registered-medicines