Pharmaceutical News
Health providers recommend delaying drug price cut amid drug shortages
2023/02/24

As shortages loom, health providers have urged the National Health Insurance Administration to delay its planned cuts to drug prices. The NHIA had intended to announce its planned drug price cuts on Feb. 24, however, following a meeting with providers earlier on the same day, it has decided to postpone its announcement to no sooner than March 1. However, the expectation is that the overall reduction to drug expenditure will remain at around NT$8.18 billion.

NHIA Director General Shih Chung-liang said that his office has added extra considerations on whether the planned drug price cuts will exacerbate ongoing shortages in drug supply. The NHIA said that it has attributed drug shortages at some community-level pharmacies due to logistical and distribution constraints, while suppliers’ difficulties in meeting rising demand have led to shortages of respiratory disease drugs at larger hospitals amid rising demand. During his meeting with providers, Director General Shih also discussed concerns that falling prices could result in the exit of some critically needed drugs from the Taiwan market. 

During the meeting, providers said that they have not identified the reason behind the shortages of 10 types of drugs and will require further verification from the NHIA on whether they are among the 6,009 drug items slated to see lower reimbursement prices. Providers said that without this information, they must recalculate the full impacts of the planned cuts to reimbursement pricing. Therefore, the NHIA has moved back its official announcement on cuts to drug reimbursement pricing from Feb. 24, to no sooner than March 1.

[2023-2-24/United Daily News]