NA prepares bill to prevent 'price cut lawsuit' gimmicks

Focuses on retrieving reimbursement benefits after loss of a drug pricing suit

Various NA Health and Welfare Committee members including Woni Kim, Insoon Nam, Jaekeun In, etc. are “reviewing” a bill

A bill to prevent pharmaceutical companies from filing administrative suits for the purpose of evading or delaying drug price cut dispositions made by the government is expected to be introduced at the National Assembly.

 

The bill will prevent the recurrence of cases similar to the suspended execution of drug price cuts ruling for the brain function enhancer choline alfoscerate, which has been a hot issue since last year’s NA audit.

 

An official from Woni Kim’s office of the NA Health and Welfare Committee explained, “The avoidance of drug price cuts and reimbursement suspensions by companies is an issue that every Health and Welfare Committee member should pay attention to.

 

We are preparing to amend relevant laws.” Woni Kim’s office is not the only place preparing a bill.

 

The bill will aim to recover the reimbursed benefits paid to drugs during the period that the price cuts were avoided using the suspension of execution when the pharmaceutical company that filed the administrative lawsuit in objection to the government’s price cut disposition loses the suit.

 

The key is to impose a penalty and exercise the right to indemnity when a pharmaceutical company deliberately pursues a lawsuit to cancel or delay the government’s justifiable drug price cut disposition.

 

Of course, the bill will also include a provision that compensates for the damage suffered by pharmaceutical companies during the litigation period if the government's unjustifiable drug price cut is proven in court after a pharmaceutical company wins the lawsuit.

 

Also, retroactive application of the bill is also being reviewed in consideration of the fact that many drugs including choline alfoscerate are in litigation to cancel their price cuts.

 

The issue of health insurance finances wasted due to objections to price cut dispositions has been an agenda discussed for many years including at last year’s audit.

 

At the NA audit last year, NA Health and Welfare Committee members Insoon Nam and Jaekeun In of the Democratic Party of Korea had appealed the need to amend the laws, criticizing the cancelation and injunction suit filed by choline alfoscerate makers whose reimbursement reduction and price cuts were set.

 

They pointed out that the administrative suits or suspension of execution filed for the drug price adjustment disposition are being used as a means to preserve or make profit for pharmaceutical companies, or that it is causing unreasonable loss of health insurance finances.

 

In had said that an estimate of 150 billion won of health insurance finances was lost in three years from 2018 to 2020 due to the abuse of drug price reduction cancellation lawsuits by pharmaceutical companies.

 

An official from a member’s office of the NA Health and Welfare Committee said, “Several ruling party members in the committee agree to the validity of such a bill and are coordinating the bill with the Ministry of Health and Welfare.

 

Legislation of this bill requires careful examination in retrospective application, enforcement date, and the supplementary provisions, as the issue on choline alfoscerate is still ongoing.” The official added, “Some have criticized that the drug price reduction cancellation lawsuit and injunctions are being abused as marketing tools by pharmaceutical companies to minimize damage from such price reductions.

 

The Ministry of Health and Welfare and the National Health Insurance Service also agree on the need for the bill, so we expect that a bill will be proposed soon.”