Drug price cut refund bill’s fate depends on LJC Chair

on which party will take Legislation and Judiciary committee Chair will affect passage of the bill

The bill is pending at the Legislation and Judiciary committee level… may come to a stop if the People Power Party takes Chair

Industry expectations are rising on the prospect that the constitution of the NA leadership in the second half of the year will directly affect the fate of the Bill to recover and retrieve drug price cuts.

 

If the People Power Party, which had been criticizing the inadequacy of the bill, takes Chair of the Legislation and Judiciary committee, it may significantly increase the possibility that the bill’s non-passage.

 

On the 19th, the pharma-bio industry and the legal community are paying close attention to the progress made between the ruling and opposition parties’ negotiations regarding the composition of the NA leadership in the second half of the year.

 

The National Assembly’s second half of this year’s term had started in June, but with the ruling and opposition party having difficulty agreeing on the composition of the NA leadership, the position of the Legislation and Judiciary Committee Chair has remained vacant for 3 weeks now.

 

The determination of both the ruling and opposition parties to take the position has prolonged the confrontation even despite under-the-table negotiations.

 

If the ruling party, the People Power Party assumes the Chair of the Legislation and Judiciary committee, this is expected to increase the possibility of the bill’s non-passage at the committee level.

 

Therefore, on which party will assume Chair of the Legislation and Judiciary committee is expected to affect the bill for the recovery and retrieval of drug price cuts that can significantly impact sales and marketing in the pharmaceutical industry.

 

The bill, which contains the measure for the government and pharmaceutical company to retreive or recovers the pharmaceutical benefits (reimbursement) amount that had not been settled during the drug price cut disposition suspension period, is currently pending in the 2nd subcommittee of NA’s Legislation and Judiciary Committee.

 

The bill was proposed by members Woni Kim and Insoon Nam of the Democratic Party of Korea as representatives and passed NA’s Health and Welfare Committee with consensus between the opposition and ruling parties.

 

However, the agenda was then put on hold by members of the People Power Party during review in the Legislation and Judiciary Committee’s plenary session.

 

At the time, People Power Party member Joo-Hyae Jeon had criticized the bill for being unconstitutional.

 

Jeon pointed out that the bill excessively restricts the pharmaceutical companies' right to file lawsuits to prevent them from applying for an injunction to suspend the execution of the drug price cut itself.

 

Jeon added, “I want to express my deepest regrets on the fact that a bill that completely undermines the administrative litigation system has been put up for deliberation for the Legislation and Judiciary Committee.

 

The bill requires the company to refund the whole amount of the drug price cut disposition that was not made during the execution suspension period, but this penalizes compulsory executions and neutralizes the suspension itself.

 

The bill was unable to pass the plenary session then and was set to remain pending in the 2nd subcommittee of NA’s Legislation and Judiciary Committee for further review.

 

The NA’s Health and Welfare Committee which believes in the need for the bill has set out to persuade the members of NA’s Legislation and Judiciary Committee, focusing on the PPP members that have opposed the bill, but to no avail.

 

This is why there are prospects that the bill will not pass NA or be enacted if the PPP takes over the Chair position of the Legislation and Judiciary Committee in the second half of the year.

 

With no decisive change or event arising for the PPP to change their mind on the bill, if the ruling party takes over the Chair position that can make or break the enactment of bills, experts believe that the possibility of the bill not being deliberated or being voted down may rise significantly.

 

Also, the legal community and the pharmaceutical industry’s rising voices on the unjustness of the bill and strong opposition are also expected to hinder the passage of the bill.

 

Therefore, on which party, the ruling or opposition party, takes over the Chair position of the Legislation and Judiciary Committee is likely to make or break the bill.

 

An official from the pharmaceutical industry said, “Many domestic and multinational pharmaceutical companies have been strongly appealing and opposing to the unfairness and fatality of the refund and redemption bill, he said.

 

"The reality is the appointment of the chairman of the Legislation and Judiciary Committee will inevitably affect the introduction, deliberation, and passage of the bill.

 

This is why we are keenly following discussions on the composition of the NA leadership.” A lawyer from a Korean law firm who requested to remain anonymous, said, “From the legal community’s point of view, the bill nullifies the execution suspension system and overthrows the judicial system.

 

From the pharmaceutical company’s point of view, they may not file a suit to cancel the drug price cut disposition or give up making appeals due to fear of the government's retrieval and collection of the drug price cut disposition amount after the trial.

 

This by itself is an infringement of the right of access to courts and is against the constitution.”