“Cost-effectiveness review inevitable for high-cost drugs”

Minister Park “Pricing in the Netherlands tenfold higher, Korea is keeping the balance”

Korean Minister of Health and Welfare Park Neung-hoo stated the ministry would approach the issue of National Health Insurance (NHI) coverage on super expensive drugs by evaluating cost-effectiveness of treatment and pharmaceutical opportunity cost.

 

Particularly, Minister Park highlighted insurance covered drug pricing system in Korea is comparatively reasonable than other countries.

 

At the recent annual audition session by National Assembly Health and Welfare Committee, Minister Park answered Lawmaker Chang Jung-sook’s questioning.

 

Lawmaker Chang’s question was on the pharmaceutical benefit issue from the NHI coverage enhancement policy, the ‘Moon Jae-in Care.’ She argued patients with severe diseases are still struggling with insurance coverage on high-cost drugs, despite Ministry of Health and Welfare (MOHW) is positively evaluating Moon Care’s performance.

 

The lawmaker specifically pointed out about increasing number of global pharmaceutical companies giving up on bringing in new treatment or immunotherapy for severe diseases to Korean market due to MOHW’s unreasonable pharmaceutical benefit policy for high-cost drugs.

 

“I applaud the government’s endeavor in challenging negotiation to set favorable pricing for the NHI.

 

However, the public would eventually reprehend the government for betting patients’ lives on the table if the government relentlessly press companies on to reduce drug price on severe disease treatment”, Lawmaker Chang claimed.

 

“84 percent of the Citizen Council for NHI that formed last year agreed on providing insurance benefit on severe disease treatment with small patient size, and on removing mild health condition treatment from reimbursement listing.

 

The government should urgently help those patients in severe condition and in desperate need for treatment access”, Lawmaker Chang added.

 

Minister Park partially agreed with the lawmaker’s argument, but explained the reality of MOHW how it has no choice but to keep cost-effectiveness in mind when deciding on insurance benefit for high-cost drugs.

 

“The lawmaker’s criticism is right, but partially.

 

NHI coverage should be considered from all sides as there are extremely expensive drugs at an unbelievable price of over hundred million won.

 

We need to ponder on whether to save one patient with hundred million won, or to save ten patients with cost-effective price”, the minister stated.

 

Minister Park also elaborated, “The government is not neglecting patients with severe condition.

 

But we are trying to balance out the cost-effectiveness.

 

Recently I was in ministerial meetings with Dutch and Danish health ministers on the topic of medicine access.

 

And they personally expressed gratitude towards Korean government for having a proper control over high-cost drugs.

 

In some countries, the expensive drugs cost tenfold of price in Korea.

 

Korea is actually keeping the balance in global market.” “Despite all, it is right for the NHI coverage to center treatments for severe condition.

 

The government would continue to seek out for reasonable plan to expand coverage through discussion”, he added.