MNCs ask to “Innovate new drug reimbursement environment"

Multinational pharmaceutical companies' request to presidential candidates

“Need to advance the drug pricing system by measures such as introducing pre-listing post-evaluation, diversifying RSA, introducing customized reimbursement, etc.”

Plans to submit policy proposal after meeting with People Power Party Representative Jun-Seok Lee

The key content of the policy proposal that representatives of multinational pharmaceutical companies with branches in Korea presented to the People Power Party’s election campaign committee was that the government should establish or improve the National Health Insurance and drug pricing system to encourage the use of highly effective but expensive innovative new drugs.

 

The policy proposal contained the request to pull forward the timing of insurance coverage for the companies' new drugs with measures such as preparing a separate source of finances other than the NHI finances by setting a new account for pharmaceutical expenses for severe diseases, introducing the ‘pre-(insurance) listing post-evaluation system, diversifying the risk-sharing agreement (RSA) scheme, and introducing a customized reimbursement model, etc.

 

Also, requests on improving the domestic drug pricing system so that the innovative value of new drugs can be fully reflected in new drugs by improving the pharmacoeconomic evaluation system, and building a control tower for new drugs under the direct control of the president to reinforce nurturing/support/development of innovative new drugs.

 

The Korean Research-based Pharmaceutical Industry Association will deliver a healthcare policy pledge proposal for the 20th presidential election that contains the contents above to People Power Party Representative Jun-Seok Lee on the morning of the 27th.

 

The policies KRPIA asked for are laregly: ▲reducing the economic burden of patients by strengthening medical expenditure support ▲ improving the new drug listing system ▲Building a global hub to reinforce capabilities to develop blockbuster new drugs ▲introducing a global level evaluation system to rationalize the drug price decision-making structure ▲establishing a control tower for new drugs under the president.

 

In other words, KRPIA’s policy proposal implies the need for innovation in NHI listing and reform of Korea's drug pricing system to enhance patient access to new drugs that are owned by the MNCs.

 

The association saw that the current health insurance finances and catastrophic medical expense support system were insufficient to enhance patient access to new drugs.

 

As its solution, KRPIA pointed to expanding subjects and the extent of catastrophic medical expense support while preparing a separate source of finances for the reimbursement of severe diseases or high-priced pharmaceuticals.

 

In particular, the association stressed the need to establish a separate account to cover drug expenses for severe diseases by procuring additional finances from the national treasury and the Health Promotion Fund, as well as with refunds that the NHIS receives from the pharmaceutical company under their RSA contract, and cancer management fund, etc.

 

The KRPIA also criticized the problems in Korea’s new drug listing system that reduce the use rate of new innovative new drugs compared to other advanced countries while delaying patient administration of such drugs due to the non-existence of an expedited reimbursement evaluation system.

 

KRPIA suggested that the issue above can be resolved by introducing the ‘pre-listing post-evaluation system that allows for drugs to be listed for reimbursement first then be evaluated by health authorities to decide on a final price, diversifying the risk-sharing agreement (RSA) scheme, and introducing a customized reimbursement model, etc.

 

Table for the pre-listing post-evaluation system KRPIA delivered to PPP

KRPIA believed that signing an agreement that allows for the setting of an initial drug price based on foreign drug price while proceeding with the evaluation process so that drugs that are listed at a lower drug price or non-listed can be refunded to the government post-reimbursement, would reduce the government’s concern over wasting NHI finances.

 

Also, as the current RSA system has a narrow scope of application, KRPIA requested that the RSA scheme cover drugs that have fiscal neutrality, recognized for the therapeutic need diseases other than cancer or rare diseases.

 

Also, the association suggested introducing a detailed customized reimbursement model that takes into account the characteristics of individual drugs such as advanced biopharmaceuticals, rare disease drugs, and anticancer drugs and preparing an environment in which new drugs can be effectively listed through an expedited reimbursement evaluation system and advance negotiation system, etc.

 

The KRPIA also raised the need for innovation in Korea’s drug pricing system.

 

With the claim that the current drug pricing method cannot properly reflect the economic value of many new drugs, the association asked that the innovativeness of a drug be reflected in the drug’s price based on a drug price comparison method.

 

Also, KRPIA stressed the need to create an environment in which the true value of a new drug is recognized by improving the evaluation process and increasing the transparency and redundancy of evaluations that are undermined during the process of multiple evaluations conducted for new drugs by several committees.

 

In addition, the association proposed the construction of a control tower for new drugs under the direct control of the president to reinforce the competitiveness of Korea’s pharmaceutical and biopharmaceutical industry and to develop blockbuster new drugs.

 

New drug support in the current administration is less effective as it is tended to by various ministries including the Ministry of Health and Welfare, the Ministry of Science, Technology, and Information and Communication, and the Ministry of Trade, Industry and Energy, with no control tower to oversee the process.

 

KRPIA stressed, “We need to open the era of customized health coverage for the people in which the nation covers the innovative treatment of severe rare diseases.

 

We need to foster Korea to become a blockbuster new drug powerhouse by building an innovative pharmaceutical and biopharmaceutical ecosystem and prepare measures such as introducing an appropriate value appraisal for new drugs.”