Hair loss drug reimbursement to cost ₩179.7B per year

Drug supply value surpasses KRW 250 billion…debate intensifies ahead of July policy forum

As the Ministry of Health and Welfare prepares to gather public opinion on extending National Health Insurance (NHI) coverage to hair loss treatments, the annual spending required for the coverage is estimated to be around KRW 128 billion to KRW 179.7 billion, depending on patients’ coinsurance rates.

The estimate is based on a simple calculation using last year's supply value of prescription hair loss medications, assuming patient copayment rates of either 30% or 50%.

The debate over whether to provide health insurance coverage for hair loss, which is not a life-threatening disease, is intensifying. In response, the Ministry of Health and Welfare intends to seek social consensus through a public policy forum jointly organized with the Ministry of the Interior and Safety.

According to data on hair loss treatment drug supply submitted by the Health Insurance Review and Assessment Service (HIRA) to Rep. Sun-min Kim of the Rebuilding Korea Party, the value of hair loss medications requiring a physician's prescription increased from KRW 216.43 billion in 2022 to KRW 256.83 billion last year.

Drug supply volume also rose substantially during the same period, from 295.74 million units in 2022 to 446.32 million units last year. As of April this year, 157.27 million units of the treatment, valued at KRW 86.46 billion, have already been supplied, maintaining a continued growth trend.

The number of patients seeking medical treatment for hair loss continues to be in the hundreds of thousands range each year. According to claims data, the number of patients treated for alopecia was 250,573 in 2022, 247,382 in 2023, 241,217 in 2024, and 237,009 in 2025, remaining within a range of approximately 230,000 to 250,000 annually.

As of April this year, 115,028 patients had already sought treatment. By gender, men accounted for 134,155 patients in 2025, compared with 102,854 women. However, women still represented approximately 43.4% of all patients, demonstrating that hair loss affects both sexes.

By age group, individuals in their 20s through 40s, the core economically active population, accounted for more than half of all patients. In 2025, the most prescribed were patients in their 40s (53,489), followed by those in their 30s (50,712), 50s (46,539), and then 20s (35,803).

By disease subtype, alopecia areata accounted for the majority of cases at 175,493 patients, followed by other non-scarring hair loss (noncicatricial alopecia, 29,583), androgenetic alopecia (23,941), and scarring alopecia (cicatricial alopecia, 11,779).

Medical expenses paid to hospitals by patients are also on the rise. Total consultation costs for hair loss increased from KRW 36.70 billion in 2022 to KRW 39.28 billion last year.

These figures include only physician consultation fees and diagnostic testing costs incurred at medical institutions and exclude prescription drug and dispensing costs.

As a result, when combining patients’ medication expenses and medical treatment costs, annual spending on hair loss treatment exceeded KRW 290 billion last year.

NHI burden depends on coinsurance rate…debate inevitable

Health and Welfare Minister Eun-kyeong Jeong has expressed plans to accelerate the implementation of insurance coverage for hair loss treatments as a follow-up measure to President Lee Jae-myung’s campaign pledge.

However, the substantial financial implications have intensified debate over whether such coverage should be included within the National Health Insurance system. Discussion gained momentum after President Lee called for a review of insurance coverage for hair loss medications.

If reimbursement is granted, the financial burden on the NHI system will vary according to the patient's coinsurance rate. Using the 2025 prescription drug supply value as a basis, a simple estimate suggests that if patients pay 30% of drug costs, the NHI system would bear approximately KRW 179.7 billion. If the copayment rate is set at 50%, the estimated annual financial burden would be approximately KRW 128.4 billion on the government’s part.

Supporters of reimbursement argue that while hair loss is not life-threatening, it can significantly reduce quality of life and contribute to depression, social anxiety, and social withdrawal, making it a legitimate medical condition.

They further contend that for young adults preparing for employment or marriage, treatment is not merely cosmetic but essential for social participation and daily functioning, and that the current out-of-pocket burden is excessively high because treatment remains non-reimbursed.

Opponents, however, argue that the fundamental purpose of the National Health Insurance system is to protect citizens from severe and life-threatening illnesses. Using funds to address hair loss caused by aging or genetic factors, when the budget remains insufficient even for serious diseases such as cancer and cardiovascular disorders, could divert resources away from critically ill patients and ultimately result in higher insurance premiums for the public.