Concerns about the introduction of the Reference Price

The MOHW responds to a written inquiry of the parliamentary audit to the National Assembly

Review of drug management considering individual drugs

The government expressed concern over the National Assembly's proposal to review the introduction of the Reference Pricing System.

 

Although they sympathize with the need for rational drug price management, side effects such as an increase in the patient's economic burden are predicted from the reference price system itself.

 

Regarding price policies, such as proposals for mandatory general administration, it said that the pros and cons of the pharmaceutical industry and conflicts will be reviewed through collecting various opinions because social consensus is important.

 

The MOHW recently submitted a written response to such issues related to drug price policies proposed and inquired by the Health and Welfare Committee during the last parliamentary audit.

 

Through written inquiries, lawmakers belonging to the Welfare Committee asked about generic drug price policies such as discussing the reference price system to normalize the generic drug market and reduce health insurance finances.

 

The MOHW agreed on the need for drug price management to reasonably manage health insurance drug costs and create a cost-effective generic use environment.

 

In fact, after the Valsartan crisis in 2018, the government has implemented a generic drug price reorganization since July last year to prevent competition for generic turmoil.

 

However, the government was virtually negative regarding the Reference Pricing System.

 

The MOHW explained, "The Reference Pricing System can contribute to reducing health insurance finances, but it is likely to bring about significant changes in the current drug price system and increase the economic burden on patients." The government said, "It is necessary to refer to overseas cases and carefully review them through collecting social opinions." In the case of generic substitution, social consensus is needed in consideration of the principle of division of medicine established in 2000.

 

Currently, one out of every two benefit drugs is given incentives for items that can be generalized, but it is negative in the medical community.

 

The MOHW replied, "We will review it by collecting opinions from related ministries, related organizations, and experts." The Welfare Committee also inquired about the necessity of establishing an expensive drug to prevent it from being recklessly prescribed.

 

In response, the government explained, for example, that in the case of Spinraza, the HIRA is operating a pre-approval system to prevent disputes, and said, "We will consider various drug management measures considering individual drug characteristics of individual drugs."