To enhance the stability of the drug supply, the NHIA issued an advance announcement regarding amendments to certain articles of the “NHI Pharmaceutical Benefit and Reimbursement Scheme.” Legislator Chen Gau-Tzu (Taiwan People's Party) held a public hearing on January 9th titled “Increasing the Resilience of the NHI Drug Supply.” Experts were invited to provide comments on drug pricing issues, including NHI drug payment prices and the drug price gap. The panel urged the NHIA to consider the policy more thoroughly.
The MOHW proposed the aforementioned draft amendment in November 2024. According to the draft, generic drugs and biosimilars manufactured in Taiwan would be priced at the initial price of the original drugs. Professor Lee Su-Hua, from the Department of Law at NTU, noted that the pricing of original drugs takes into account their R&D costs; however, the amendment proposes granting the same preferential price to generics. The authorities must reconsider the rationale behind this new pricing regulation.
Furthermore, the draft introduces regulations on mandatory drug listing. Professor Lee noted that one objective of this amendment is to address the issue of many drugs entering the self-payment market instead of applying for NHI listing. However, the new regulation infringes on manufacturers’ intellectual property rights. Once a drug is forced to be included in the NHI Benefit Scheme, its payment price may serve as a reference in the global market. Consequently, some original drug manufacturers might withdraw entirely from the Taiwan market, and generic drugs may not even be available in the future.
In response, Ms. Anna Yin of the Taiwan Generic Pharmaceutical Association stated that the new regulation serves as an incentive to encourage local manufacturers to accelerate the development of generic drugs. Under the new regulation, the NHIA will grant the first two approved generic drugs the same payment prices as the original drugs.
Regarding the long-standing dispute over the drug price gap, Professor Chen Shi-Hsiung from the Department of Business Administration at Taipei University pointed out that the NHI budget for drugs has reached NT$243.1 billion, accounting for approximately 27% of the total NHI global budget. However, after deducting the price gap, the actual percentage is estimated to be below 20%. It is common for hospitals to influence doctors’ prescriptions through various administrative measures, thereby creating a system where profits from drugs are used to support hospital operations. Professor Chen urged the NHI to eliminate price gap on drugs already at floor prices to ensure a stable supply.
Legislator Chen Gau-Tzu criticized the government for its long-standing tendency to overlook the issue of the drug price gap. Mr. Parng I-Ming, Deputy Director of the NHIA, stated that the draft is still in the public commenting period and assured that the government will consider and incorporate all feedback received.
【2025-01-10/ United Daily】
