What is the cost of testing? hraparak

The State Commission for the Protection of Economic Competition has not studied the pricing of PCR tests. Currently, the prices of these tests are one of the most pressing issues for citizens of Armenia, second only to border security concerns. How can a service that costs 15,000 drams be sold for 6,000 to 7,000 drams, a price set by private companies in recent days? Such prices apply when collectives with 20-30 or more members simultaneously demand testing.

Vardanants Medical Center, which was the first to lower the price of the test, offers the service for 9,500 drams, Medline Clinic for 7,000 drams, PromTest for up to 10,000 drams, and so on. This information is reported by hraparak.am.

If anti-COVID testing can be implemented at such low costs, then why did laboratories charge Armenian citizens excessively for a year and a half, selling services at three times the price and making huge profits? These questions are being raised today both on social media and at the government’s doors.

The government, through the media operating under its "guidance," claims that it has not made tens of millions of dollars in profits since PCR testing services are primarily provided by private healthcare institutions. Even if that is the case, the state is obligated to regulate any sector, especially when testing is mandatory and a large segment of the population is forced to resort to these private services.

The Ministry of Health is also distancing itself, stating that it is not connected and suggesting reaching out to the Commission for the Protection of Economic Competition for an analysis of pricing. Meanwhile, the State Commission for the Protection of Economic Competition washes its hands of the issue, arguing that "the commission does not have the authority to set prices, and there are no operators in a dominant position in the market." As always, the commission provides a standard response that the market is competitive, avoiding any effective action.

An effective step would have been to study the market and at least determine the cost price of tests. People are talking about the cost price not exceeding 3,000 drams. Yet, while the State Commission is learning about pricing surprises from the media, the government does not provide clear instructions to investigate the sector and understand why the public was subjected to exorbitant prices for a year.

Are you not studying the testing market? Do you have any such directive from the government? The Commission responded to our inquiries: "No, we are not studying it," and then repeated already circulating phrases that do not pertain to our questions, existing prices in the market, or the complete spectrum of the commission's functions: "The sector is competitive; there are more than 10 operating entities in the field, and there are no dominant players. Testing prices vary from 8,000 to 15,000 drams, and in some places, up to 20,000 drams, and the Commission for the Protection of Competition has no authority to set prices. If there is a need for such regulation, it must occur through law or another normative legal act."

As we can see, the commission has a misguided understanding of the prevailing prices in the market. According to our information, they are already lower than 8,000 drams. Some collectives are signing contracts for 5,000 to 6,000 drams. It is clear that this has turned into an unregulated business sector, and those who can take advantage of the pandemic and the government’s illegal decisions are profiting from it.