9 out of the top 10 drugs on the NHI spending chart facing a price cut

The NHIA announced the latest drug price adjustment plan, which imposes a price cut on 7237 drug items and a price increase on 78 items.  The average price adjustment rate is 2.3%.  9 out of the top 10 drugs on the NHI spending chart are facing a price cut from NT$1 to NT$285.  The NHIA estimates the adjustment will save NT$ 4.04 billion on annual drug fees after the new prices take effect in October.  The NHIA stressed that, from past survey results, only 0.3% hospitals changed their drug formularies because of drug price cuts; therefore, the public should not be too worry about this issue. 

An average adjustment rate of 2.3%

Regarding the NHIA’s controversial proposal of setting a ceiling price for medical devices eligible for the balance-billing scheme, the NHIA decided to tackle this issue by targeting on hospitals charging grossly excessive fees.  Those hospitals are requested to explain and justify their charges before September.

9 out of the top 10 drugs on the NHI spending chart are facing a price cut, including Plavix, Crestor, Entecavir, Toujeo, Humira, Simponi, Glivec, Herceptin and Avastin.  The price reduction is between NT$1 and NT$285.  Nexavar is the only product on the top 10 list exempt from the price cut.

An 18% cut on herpes treatments

The biggest price cut by value is on Ilaris, a cut from NT$420,000 to NT$410,000.  However, in terms of percentage, the biggest price cut is on Virless, a cut by 18%. 

There is always a concern over hospitals’ changes of drug formularies following the NHIA’s announcement of a drug price cut.  Huang Zhou-Jie of the NHIA stressed that, according to a previous survey, only 0.3% hospitals changed drugs due to the NHI price adjustment. The public do not have to worry too much.

Huang Yen-Ru, the spokesperson of the Taiwan Pharmacists Association, pointed out that hospitals usually have signed a supply contract with drug companies at negotiated prices; therefore, drug supply would not be affected before the contract expires.

Huang Yen-Ru explained that community pharmacies will be hit hard by the drug price cut, if they already have a huge stock.   Pharmacies may reduce the stock level of those drugs affected heavily by the price cut.  He advised patients to give pharmacies sufficient time to prepare for the prescriptions.

【2020-08-27/ Liberty Times】