National Health Insurance Administration (NHIA) Director General Shih Chung-liang on Feb. 26 said that prior to the implementation of drug expenditure target (DET), drug prices were subject to much larger adjustments. While the pharmaceutical industry recognizes the necessity of DET, there are many details that still need to be ironed out through continued discussions among stakeholders. Director General Shih said that revisions to DET will be made and clarified following a notice-and-comment period in the first half of 2024 at the soonest.

Federation of Taiwan Pharmacists Associations (FTPA) President Huang Jin-shun said that following the round of drug price adjustments, several manufacturers are now looking to halt production or exit the Taiwan market, as losses are inevitable at current pricing. In response, NHIA Director General Shih said there has been no feedback since the new drug prices were announced last week, adding that simply correlating drug pricing with drug supply is an oversimplification. Director General Shih also pointed out that the reports of drug shortages over the past year were attributed to issues in the drug supply chain and shortages of raw materials, rather than depressed drug prices.

Regarding FTPA President Huang’s suggestion to establish a floor price for drugs, Director General Shih said that although current regulations do call for a floor price for drugs, hospitals are entitled to negotiate their own pricing with manufacturers. Furthermore, as there is no precedent for unified procurement of floor-priced drugs, further research and discussion is necessary to prevent the impacts of excessively low pricing on the quality of drugs.

[2024-2-26/Central News Agency]