Pharmaceutical News
Drug price reform requires balance billing to achieve win-win outcome
2025/10/13

In an opinion piece, Taiwan Society of Regulatory Affairs for Medical Products (TsRAP) President Kang Jaw-jou Oct. 6 stated that, due to the increasingly aging population and the accelerated development of new drugs and medical technologies, promoting generic drug policies has become a pressing matter. He noted that under the new drug pricing adjustment policies implemented this year, the prices of off-patent drugs, as well as their generic and biosimilar counterparts, will be aligned with the average prices of the A10 countries and reduced accordingly.

 

However, President Kang also noted that if drug prices are significantly reduced, the market incentives for manufacturers to maintain a stable supply could be weakened. To address this concern, he suggested reintroducing the balance billing system for drugs to enhance the flexibility and resilience of the pharmaceutical supply chain. He added that, if effectively implemented in conjunction with the generic drug policy, balance billing could lead to a more efficient allocation of National Health Insurance resources.

 

President Kang said that pharmaceutical manufacturers, hospitals, and patient groups have recently convened to discuss balance billing for drugs, and raised the following four key suggestions:

  1. Balance billing could first be piloted for drugs with the same ingredient, dosage form, strength, and specification as their originator counterparts, while excluding patients with special medical needs from balance payment requirements to ensure fair access to healthcare.
  2. Under the new hospital global budget system, implementing balance billing alongside generic drug policy could improve the allocation of resources on drugs; therefore, hospitals are encouraged to provide at least one alternative drug option to patients without balance billing charges.
  3. Indicators should be developed to monitor the implementation of the balance billing mechanism to identify areas for improvement.
  4. Balance billing could be integrated with the existing copayment system to enhance administrative efficiency and promote reinvestment into drug expenditures.

 

[2025-10-6/United Daily News]