Reported by Chen Jie-Ling from Taipei

The NHIA recently announced the latest NHI drug price adjustment.  A total of 7470 drug items are facing a price cut, while 66 drug items will have a price increase.  The average adjustment rate is 3.5%.  This price adjustment will save the NHI about NT$5.8 billion on drug fees.  Many drugs for treating the so-called “3-high” conditions are to be affected.  The new prices will take effect from April 1.

In order to sustain the NHI finance, the NHIA started the “Drug Expenditure Target System” in 2013.  Under the “Drug Expenditure Target System”, any drug expenditure exceeding the pre-determined annual target will be clawed back in the following year by reducing the drug prices.  The NHIA imposed a price cut of NT$7.38 billion last year; and this year the cut is NT$5.83 billion.  The biggest cut on a single item is over NT$7000.

Lien Hung-Rong, a Section Chief of the NHIA, expressed that the drug fees in 2018 exceeded the target by NT$5.83 billion.  According to the Regulations of the NHI Drug Price Adjustment, a drug price cut should be imposed based on the results of the drug price and volume survey.  Drug items whose transaction prices are lower than the reimbursement prices are subject to a proportional price cut.  However, drugs for treating HIV, hepatitis C, haemophilia or rare diseases are exempt from price adjustment.

Every drug price cut imposed by the NHIA causes the public’s concerns over the consequential drug changes in hospitals.  Lien expressed from previous experiences that only 1% of drug items were changed in previous operations; and such changes were not entirely associated with the NHI drug price cut.  Lien expressed that a drug price cut will help contain the growth of drug fees, and allow the NHIA to allocate more resources to new drugs and new indications.

【2019-02-01/ United Daily News】