NHIS collected 440 million won for valsartan indemnity

Lawmaker Nam says collection rate at 21.5% out of total 2.03 billion won

Government considering on filing damage suit against 43 companies

Only 21.5 percent of pharmaceutical companies have paid the charged indemnity on valsartan damage.

 

Report on ‘Valsartan related Indemnity Claim and Collection Status’ provided by National Health Insurance Service (NHIS) to Democratic Party Lawmaker Nam In-Soon stated the government agency has charged 69 pharmaceutical companies 2.03 billion won as indemnity for additional National Health Insurance expenditure made.

 

However, only 26 out of 69 of them, or 21.5 percent, have paid 436 million won to the government.

 

NHIS announced it spent about 2.03 billion won the agency was not liable for, due to the drug exchange order on already dispensed valsartan medicines last year.

 

The amount consists of 964 million won for diagnosing 109,967 patients, and 1.07 billion won for dispensing other option of treatment to 133,947 patients.

 

Accordingly, the agency charged indemnity for the additional expenditure against 69 pharmaceutical companies on Sept.

 

25.

 

The first payment deadline was on Oct.

 

10, but the initial collection rate reached about 4.8 percent.

 

After the second deadline on Oct.

 

31, total of 26 pharmaceutical companies paid 21.5 percent of the charged indemnity.

 

“Based on external legal consulting, pharmaceutical manufacturers had a fault in safety of manufactured products.

 

On the grounds of product defect as stated in the Product Liability Act, the government claiming for damages was confirmed legitimate.

 

The agency is considering on filing a litigation case worth 1.59 billion won against 43 companies for the unpaid indemnity payment”, NHIS official explained.

 

Meanwhile, pharmaceutical companies with the unpaid due are reportedly considering on taking a joint legal action or litigation to prove absence of legal liability, when NHIS files for damage suit.