Pharmaceutical News
Unprofitable drugs in shortage eligible for price renegotiation
2023/04/14

The Ministry of Health and Welfare on April 11 announced the establishment of a center to handle reports of drug shortages. Headed by the minister of health and welfare, the center will facilitate communications across the ministry. To cope with ongoing drug shortages, the National Health Insurance Administration (NHIA) will also provide a single point of contact, real time data on drug supply and shortages, protocols for interdepartmental collaboration, measures to provide funding to cope with drug price adjustments and enabling reimbursement of substitute drugs.

NHIA Director General Shih Chung-liang said that manufacturers must provide notice of any potential drug shortages six months ahead of time, so that the NHIA can arrange for substitute drugs. Manufacturers that fail to make the required prior notice will face fines between NT$60,000 to NT$300,000 or having the drugs in question removed from the National Health Insurance fee schedule for one year.

Upon receiving notice of anticipated shortage, the NHIA will assess whether there are substitute drugs. If there are no substitutes for the drugs in shortage, the NHIA will investigate into the reasons that led to the halt in supply. In the event that the supply disruption is caused by price, the NHIA will negotiate for new pricing within three months. If the supply disruptions are not caused by pricing, the NHIA will arrange manufacturing contracts or special imports.

[2023-4-11/China Times]