Gov’t discloses draft for overseas drug price reevals

that compares Korea’s drug price with overseas (A8 countries) drug price for price reevaluations

Will collect industry opinion based on the government’s draft...when the reevaluations will commence is yet unclear

The Korean government presented a draft of its plan during a meeting for the foreign drug price comparison reevaluations that was held on the 26th.

 

The government’s foreign drug price comparison reevaluation was planned by the government to adjust the price of off-patent drugs by comparing their price to the upper limit of A8 countries (Japan, France, Germany, Italy, Switzerland, the United Kingdom, and Canada).

 

The plan was included in the government's 2nd Comprehensive National Health Insurance Plan as a measure to strengthen the fiscal soundness of Korea’s health insurance finances.

 

At the 8th meeting that was held on the morning of the 26th at the Kukje Electronics Center in Seocho-gu, Seoul, the government presented a single proposal based on the opinions collected from the industry.

 

It is understood that the government chose one of the 4 adjustment options (A8 adjusted average price, A8 adjusted minimum price, A8 adjusted median price, and A8 adjusted excluded average price) that it had proposed at the beginning of the first round of talks late last year.

 

However, both sides emphasized that the draft was not final.

 

Representatives from the MOHW, the Health Insurance Review and Assessment Service, the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the Korean Research-based Pharmaceutical Industry Association, the Korea Biomedicine Industry Association, and other officials from the pharmaceutical industry.

 

"The government proposed a daft, but it is not final," said a government official, adding, "We have asked the pharmaceutical industry for their opinions, and will need to hold another meeting next time.

 

Nothing has been decided yet, including when the plan will be implemented and how the prices will be reassessed.” A pharmaceutical industry representative who attended the meeting also said that the proposal is not final and that more meetings would need to be held for further discussions.

 

"The meeting was held based on the contents presented by the 3 organizations,” the official said, adding, "The government made a single proposal, but it cannot be regarded as final.

 

Additional meetings are inevitable for the government to reach a consensus with the industry." On the other hand, the industry expressed concerns that the government's proposal this time will become the final proposal.

 

The government has also asked the media to refrain from reporting on the government's proposal as the final plan until a finalized version is available.

 

However, the predominant view across the industry is that the reevaluations will be initiated sooner rather than later.

 

This is because the government is planning to invest KRW 10 trillion into healthcare finances over 5 years for essential healthcare as part of its healthcare reform, during which it will seek to stabilize finances by reducing the price of generic drugs.   The pharmaceutical industry’s point is that it is not too late to start the comparative reevaluation of overseas drug prices after observing how much financial savings the government has made through existing reevaluations, such as the reevaluation of the upper limit amount and the reevaluation of drug reimbursement adequacy, and added that a preparatory period would needed before the foreign drug price comparison reevaluation to conduct pilot projects or research services.

 

The public and private sectors are expected to start discussing the government’s proposal soon.

 

However, as the pharmaceutical industry disagrees with the purpose of the reevaluation itself, a bumpy road is expected until a final draft is prepared.