Competition commissioner says Covid-19 test aren’t exorbitantly high

Competition Commissioner Tembinkosi Bonakele yesterday said it would be incorrect to say the cost for Covid tests were exorbitantly high for the two years since the pandemic began.

He emphasised that the Competition Commission intervened at the correct time when it announced a reduction in price for polymerase chain reaction (PCR) testing by two large laboratory chains.

“There was no delay in the reduction of the prices for the tests, we started the investigation in October until now, hence today’s outcome, which is quick according to the standards,” he said.

When the pandemic started, the prices for testing were approximately R1 400 per test, so actually the R850 was a reduction as a result of an intervention,” said Bonakele. This followed after the commissioner announced during a briefing that an agreement between the Competition Tribunal, Ampath and Lancet Laboratories was reached regarding a dispute on the pricing of Covid PCR tests.

ALSO READ: Competition Commission announces deal to lower price of Covid PCR test to R500

“In terms of the agreement, Ampath and Lancet have agreed to reduce the price of Covid PCR tests from about R850 to no more than R500 per test with immediate effect.

“This follows an investigation by the commission which was triggered by a complaint lodged by the Council for Medical Schemes in October, alleging that the price for supplying PCR tests for Covid tests was unfairly inflated and/or unjustifiable,” said Bonakele. Public health lawyer Safura Abdool-Karim responded that it was great news that PCR test prices could be reduced, especially during the peak of fourth wave.

“I think it is an incredible victory that the Competition Commission was able to negotiate this reduction with the two huge laboratories in the country,” she said, adding that it could have gone lower, but it was a compromise. Epidemiologist Dr Jo Barnes added affordable and accessible testing was a cornerstone of handling a pandemic. “I am really glad to see this news.”

Chair of the Competition Commission James Hodge said financial statements and detailed costing for Covid tests were required from the two laboratories for investigation.