Cold medicine bills increased by 90% due to the coronavirus

Easing documentation for price increases for essential medicines due to supply and demand instability due to COVID-19, etc.

Guidelines for mediation and negotiation to be prepared in October… Briefing session scheduled for companies

Jeong Hae-min, head of the NHIS Pharmaceutical Management Department, is answering questions at the Professional Journalists

Due to the increase in confirmed cases of COVID-19 last year, cold medicine bills alone increased by 90% compared to the previous year.

 

Based on the past five years, claims for COVID-19-related drugs were the highest in 2022.

 

The NHIS conducted negotiations on linking usage and drug price reduction for 36 items related to COVID-19 and agreed on a reduction rate by applying a correction plan.

 

The NHIS Pharmaceutical Management Office announced this at a meeting with the Professional Journalists Council on the 29th.

 

According to NHIS, as a result of analyzing the billing amount for 2,637 cold medicine and antibiotic items last year, cold medicine billing amounted to 664.5 billion won and antibiotic billing amounted to 1.0575 trillion won.

 

This is an increase of 90.1% and 24.0%, respectively, compared to the previous year.

 

When looking at trends over the past five years, the number of pharmaceutical bills related to COVID-19, which was approximately 1.5 trillion won from 2018 to 2019, decreased to 1.2 trillion won from 2020 to 2021 but recovered to 1.7 trillion won last year.

 

The NHIS also applied this COVID-19 drug while conducting PVA ‘Type C’ negotiations this year.

 

Jeong Hae-min, head of the Pharmaceutical Management Department, explained, "Starting in June, we have supported a stable supply of cold medicines by easing the reduction rate of cold medicines and antibiotics monitored by the Ministry of Food and Drug Safety through the COVID-19 medicine correction plan derived through consultation with the Pharmaceutical Association." As a result of the negotiations, 'multi-type' negotiations were conducted on 36 items related to COVID-19 (18 pharmaceutical companies, 22 same product groups), and an overall agreement was reached.

 

The NHIS plans to prepare guidelines for coordination and negotiation in response to the situation in which some essential medicines have become unprofitable due to the rise in raw material prices after the coronavirus outbreak, preventing smooth supply and repeatedly being sold out.

 

It has been pointed out that the data submitted for mediation negotiations is based on HIRA's withdrawal prevention drug application data, so the amount of data is large and complex, putting a large burden on the company.

 

Accordingly, the NHIS explains that it has been forming a consultative body with the Pharmaceutical Association since March to discuss and collect opinions from companies, simplify submitted data, and determine the ratio of general management costs and profits to be reflected in cost analysis.

 

The 7th council discussion was held until August, and the plan is to compile the collected opinions establish mediation negotiation guidelines around October, and hold a company briefing session.