The inflated price of raw materials is considered one of the reasons behind the current drug shortage crisis.  To tackle this problem, Shih Chung-Liang, the NHIA Director General, pointed out 3 key points: essential drugs, market stability and reasonable drug prices.   For any individual essential drug, if there are fewer than 3 drug licenses on the market, it indicates a high risk of supply instability.  Such drugs deserve special consideration in terms of price.  In such cases, the authority may consider offering a more reasonable price to ensure continued supply of drugs until more alternatives are available on the market.

Shih Chung-Liang pointed out that the NHIA will launch a comprehensive review and construct a list of essential drugs for constant monitoring the supply and shortage.  As for the issue of low drug prices, Shih said that the NHIA will also review the Drug Expenditure Target system, which has been implemented for 10 years, and try to remedy the unfavourable results of heavy drug price cuts over the past decade.  

Shih pointed out that the NHIA will work on educating the public about not to waste NHI resources while reviewing the appropriateness of drug prices, for example, reducing drug prices after the expiration of patents.   The savings will help to fund new drugs.

The announcement of a drug price cut is always accompanied by fears of the changes of drug formulary in hospitals.  Shih said that this year’s drug price cut affects every drug in the same drug category; therefore, the chances of hospitals changing drug formulary are not very high.

【2023-02-22 / United Daily】