Despite President Lai’s instruction in March to suspend the current drug price and volume survey for three years, pharmaceutical companies are reportedly considering exiting the Taiwan market following the drug price adjustment in October, although the National Health Insurance Administration (NHIA) has claimed that it has not yet received any such notifications. Meanwhile, the NHIA is reportedly reviewing the drug price calculation formula and how it could be implemented after the suspension of the price and volume survey.

The annual drug price adjustments carried out by NHIA have long placed significant financial pressure on pharmaceutical companies and undermined the resilience of Taiwan’s drug supply. In response, President Lai instructed in March that the current drug price and volume survey be suspended for three years. Nevertheless, there are ongoing indications that pharmaceutical companies are considering exiting the Taiwan market. 

In response, the NHIA stated that it had not yet received any notifications or applications for product withdrawal. The NHIA explained that drug price adjustments under the drug price and volume survey are conducted in accordance with Article 46 of the National Health Insurance Act, with the aim of monitoring actual drug transaction prices and adjusting drug prices accordingly.  

The NHIA emphasized that the three-year suspension primarily concerns the mechanisms related to the Drug Expenditure Target (DET) system. The Ministry of Health and Welfare (MOHW) clarified in March that, as the DET has already been promulgated, it will still take effect next year. 

According to our understanding, the NHIA is reviewing the drug price adjustment formula. The formula’s overall structure is reportedly expected to remain unchanged, although some parameters may be adjusted. The revised formula is expected to be unveiled in the first quarter of next year. An NHIA official hinted that the implementation of the new formula is still under discussion.

Furthermore, to strengthen drug supply resilience, the Executive Yuan has approved the National Drug Resilience Preparation Program. This program represents a cross-departmental effort to develop strategies and action plans. The NHIA noted that the program would strengthen Taiwan’s overall framework for domestic pharmaceutical manufacturing, strategic stockpiling, and supply chain coordination, thereby enhancing the healthcare system’s emergency response capabilities and ensuring an uninterrupted supply of essential medicines.

【2026-10-27 / Tai Sound】