NA asks NHIS to introduce the reference pricing system

NHIS agrees on the need to introduce such a system

NA member Youngseok Seo asks to introduce the system to induce price competition among generics… stresses encouraging the use of cheaper drugs

NHIS promises the agenda will be discussed by collecting opinions from government departments and stakeholders

The National Assembly raised the opinion that a reference pricing system should be introduced to induce price competition between generic drugs and encourage the use of cheaper generics.

 

NA member Youngseok Seo of the Democratic Party of Korea inquired on introducing the reference pricing system to normalize the generic market and reduce NHI finances to the National Health Insurance Service through a written QA at the NA’s Health and Welfare Committee’s Comprehensive Audit The reference pricing system refers to a system in which a certain reimbursement level is set for all drugs with the same efficacy.

 

Through the system, only a certain amount of a drug price is covered by NHI finances, and the patient bears the difference in high-priced drugs that exceed the set level.

 

Seo said, “We need to prepare an institutional environment that induces price competition among generics and encourages the use of cheaper generics.

 

The NHS should review introducing the reference price system that can prevent alliances between doctors and pharmaceutical companies, grant pharmacists the obligation to provide information, and allow patients to select medicines based on cost awareness.” Upon inquiry, the NHIS agreed on the need to prepare an institutional environment that can save NHI finances by inducing pricing competition and the use of cheaper generics.

 

NHIS replied, “In addition to newly establishing a Pharmaceutical Pricing Management Office, we have made multilateral efforts to establish a management system that can cover the whole cycle of insured pharmaceuticals by expanding the Generic Management Department.

 

We agree on the need to review measures to promote the use of high-quality inexpensive generic drugs and introducing a reference price system with reference to the economic burden borne by patients as well as cases overseas." The NHIS added, “We will discuss the measure with government ministries by collecting stakeholder opinions, etc."