Drug price management office takes care of all drug prices

from generics to ultra-high-priced drugs

It is playing a practical role in improving the system for application of all periodic management of medicines to the field

“Drug Price Management Office of the NHIS is in charge of practical work to apply the results of research services for full-cycle management of pharmaceuticals to the field.

 

It reviews and tries to realize the improvement or reform of the system related to pharmaceuticals.

 

" Kang Cheong-hee, the executive director of the NHIS’ benefit related dept., commented on the direction of the drug price management office, which was newly established on January 1 of this year, at a briefing at the Professional Reporters Council on the 23rd.

 

The need for full-cycle management of medicines has emerged as social issues such as the supply shutdown of Lipiodol in 2018, the impurities of Valsartan in 2019, and the selective benefit of Choline alfoscerate in 2020 have been raised.

 

Accordingly, the NHIS has established a Drug Price Management Office that oversees the Drug Price Planning Department, New Drug Management Department, Usage Management Department, Generic Management Department, and Drug Life Cycle Management Department (TF).

 

Director Kang said, "According to the plan to strengthen negotiation management following the introduction of a comprehensive evaluation system for reimbursement drugs, stable supply and drug cost management through full-cycle management of drugs was necessary." "We will establish a new payment plan for ultra-high-priced drugs such as Kymriah, settle a generic negotiation system, and establish a negotiation strategy that takes into account the characteristics of each drug, such as advancement of contract management and monitoring." Full-cycle management of pharmaceuticals means systematic management of the entire cycle from product approval to the registration, distribution and supply, and follow-up management.

 

The Ministry of Food and Drug Safety monitors the safety and effectiveness of the re-examination result, and strengthens contracts for retrieval of drugs subject to clinical re-evaluation and management.

 

A management plan will be prepared.

 

Currently, a research service is underway to prepare a post-evaluation plan for drugs exempted from economic evaluation.

 

In addition, the Drug Price Management Office ▲ conducts research services to screen excellent drugs and reviews measures to improve self-sufficiency of domestically produced drugs through consultations with experts and related organizations so that high-quality drugs can be supplied to the public in a cheap and stable manner, ▲prepares improvement plans through investigation of overseas systems and operation cases, and advice from external experts for rational use of cost-effective drugs and financial expenditure management, and ▲develops a financial demand prediction model based on the analysis of the drug expenditure structure, analyzes the financial expenditure according to the characteristics of diseases (efficacies) and drugs (patent expiration, etc.) to prepare an efficient drug expenditure plan in the distribution and supply stages, purchase and use stages.

 

Also, plans were made for follow-up management.

 

Director Kang said, "The prerequisite for drug management at the NHIS is to ensure that the public can consume good drugs inexpensively and safely, and the Drug Price Management Office aims to improve the efficiency of drug expenditures and improve national health rights by improving the overall drug price system." Accordingly, the negotiation procedure, which was applied only to existing new drugs, has been made mandatory for the registration of drugs such as generics since October last year, and a negotiation procedure has been introduced for all registered drugs, and mandatory contracts are being signed such as supply and quality management of all benefit drugs.

 

As for the overall status of drug price negotiations, 1,937 items were negotiated out of a total of 1,969 items that were negotiated until December of last year since the introduction of the negotiation system, of which 1798 items were agreed, and the average agreement rate reached 92.8%.

 

It has negotiated for the first time since December last year for 230 items from 130 companies subject to clinical re-evaluation, excluding 108 items from 72 pharmaceutical companies that have been voluntarily withdrawn and negotiated.

 

And, it is negotiating for 122 Choline alfoscerate products from 58 companies.

 

Director Kang said, "When taking measures such as withdrawal of permission due to clinical reevaluation, it is inevitable to take it back.

 

And, we plan to maintain stable supply and drug costs through full-cycle management of drugs, such as strengthening the bargaining power for the benefit of excellent therapeutic and economic drugs, and elaborating contract management to prevent supply and quality problems."