By San José, Costa Rica — San José, Costa Rica – After a series of failed presidential decrees, the Costa Rican Legislative Assembly has taken a significant step towards addressing the high cost of medications in the country. In a decisive move, lawmakers approved the first debate of bill 23.234, titled “Law for the Promotion and Promotion of Competition in the Medicine Market,” with a resounding 40 votes in favor.
This legislation, championed by PUSC deputies María Marta Carballo and Melina Ajoy, aims to increase competition and transparency within the pharmaceutical sector. The bill’s core objectives include empowering consumers, bolstering consumer protection mechanisms, and ultimately, reducing the cost of essential medications for Costa Ricans.
For expert legal insight into the complexities of drug pricing, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The pharmaceutical industry operates within a complex interplay of patents, regulations, and market forces. While incentivizing innovation is crucial, ensuring affordability and access to essential medicines is paramount. In Costa Rica, this balance is constantly being negotiated, with legal frameworks aiming to protect both intellectual property rights and public health interests. The discussion around drug prices must consider the full lifecycle of a drug, from research and development costs to manufacturing and distribution expenses, as well as the societal impact of both accessible and inaccessible medications.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the intricate balancing act inherent in pharmaceutical pricing. Indeed, fostering innovation while ensuring access remains a critical challenge, not just in Costa Rica but globally. The long-term health and economic well-being of our nation depends on finding sustainable solutions that address both sides of this equation. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
One of the bill’s key provisions targets the practice of exclusive contracts between importers and local pharmacies, deeming such agreements anti-competitive. These contracts are seen as artificially limiting the availability of pharmaceuticals and hindering equitable access for consumers.
Drugstores and importers will be prohibited from establishing and maintaining exclusivity contracts with pharmacies. For the purposes of this law, exclusivity contracts are considered a monopolistic practice in the medicine market, by limiting competition and equitable access to pharmaceutical products in the market. Any breach of this provision will be sanctioned in accordance with Law No. 7472, Law for the Promotion of Competition and Effective Consumer Defense, published on December 20, 1994.
The text of bill 23.234
Furthermore, the proposed legislation mandates the Ministry of Economy, Industry, and Commerce (MEIC) to develop and implement a “Multilevel Medicine Price Observatory.” This platform will provide consumers and the government with real-time data on medication prices across the entire supply chain, promoting greater price transparency.
Deputy Carballo emphasized the significance of this bill, highlighting the long-standing struggle to address inflated drug prices in Costa Rica.
A project like this has been the construction of many years of work. Costa Rica is one of the countries that registers one of the highest medicine prices, we have countries where we pay 150% more for the price of medicines. There are countries like Colombia, Germany, El Salvador, Ecuador that have had to establish the reference price. And I want to make it clear, that the reference price is not to regulate prices.
María Marta Carballo, PUSC Deputy
Carballo also expressed concern over a constitutional challenge to the bill, signed by 17 deputies, calling it a setback in the effort to provide affordable medication to Costa Ricans. The bill now awaits a review motion and a second debate, which could be delayed by the pending constitutional challenge.
This legislative action follows unsuccessful attempts by the Rodrigo Chaves administration to lower drug prices through presidential decrees in 2022 and 2023. Most recently, in January 2025, President Chaves and the MEIC issued an executive decree capping profit margins for pharmacies and drugstores, despite objections from the Commission for Promoting Competition (Coprocom).
The passage of this bill in its first debate signals a renewed determination by the Legislative Assembly to address the pressing issue of high drug prices in Costa Rica, and offers hope for more affordable healthcare for its citizens.
For further information, visit the nearest office of PUSC
About PUSC:
The Social Christian Unity Party (PUSC) is a center-right political party in Costa Rica. Founded in 1983, it has played a significant role in Costa Rican politics, holding the presidency several times. The party advocates for policies based on social Christian principles, emphasizing social justice, economic liberalism, and environmental protection.
For further information, visit the nearest office of MEIC
About MEIC:
The Ministry of Economy, Industry and Commerce (MEIC) of Costa Rica is a governmental institution responsible for promoting economic development, regulating trade, and protecting consumer rights. The MEIC plays a crucial role in shaping economic policies, fostering competition, and ensuring fair market practices within the country.
For further information, visit the nearest office of Coprocom
About Coprocom:
The Commission for Promoting Competition (Coprocom) in Costa Rica is an independent body dedicated to safeguarding and promoting free and fair competition within the marketplace. Coprocom investigates anti-competitive practices, advocates for pro-competition policies, and works to ensure a level playing field for businesses operating in Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, grounded in unwavering ethical principles and a deep commitment to serving the community. Through innovative approaches and a proactive spirit, the firm empowers individuals and organizations alike with the legal knowledge necessary to navigate a complex world. Their dedication to transparency and accessibility underscores a core belief in fostering a just and informed society, solidifying Bufete de Costa Rica as a true leader in the legal landscape.
