IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v16y2019i2p288-d199479.html
   My bibliography  Save this article

Improving Patient Access to New Drugs in South Korea: Evaluation of the National Drug Formulary System

Author

Listed:
  • Seung-Lai Yoo

    (College of Pharmacy, Chung-Ang University, Seoul 06974, Korea
    These authors contributed equally to this work.)

  • Dae-Jung Kim

    (College of Pharmacy, Chung-Ang University, Seoul 06974, Korea
    These authors contributed equally to this work.)

  • Seung-Mi Lee

    (College of Pharmacy, Chung-Ang University, Seoul 06974, Korea)

  • Won-Gu Kang

    (College of Pharmacy, Chung-Ang University, Seoul 06974, Korea)

  • Sang-Yoon Kim

    (College of Pharmacy, Chung-Ang University, Seoul 06974, Korea)

  • Jong Hyuk Lee

    (Department of Pharmaceutical Engineering, Hoseo University, Asan 31499, Korea)

  • Dong-Churl Suh

    (College of Pharmacy, Chung-Ang University, Seoul 06974, Korea)

Abstract

This study reviews and evaluates the national drug formulary system used to improve patient access to new drugs by making reimbursement decisions for new drugs as part of the South Korean national health insurance system. The national health insurance utilizes three methods for improving patient access to costly drugs: risk-sharing agreements, designation of essential drugs, and a waiver of cost-effectiveness analysis. Patients want reimbursement for new drugs to be processed quickly to improve their access to these drugs, whereas payers are careful about listing them given the associated financial burden and the uncertainty in cost-effectiveness. However, pharmaceutical companies are advocating for drug prices above certain thresholds to maintain global pricing strategies, cover the costs of drug development, and fund future investments into research and development. The South Korean government is expected to develop policies that will improve patient access to drugs with unmet needs for broadening health insurance coverage. Simultaneously, the designing of post-listing management methods is warranted for effectively managing the financial resources of the national health insurance system.

Suggested Citation

  • Seung-Lai Yoo & Dae-Jung Kim & Seung-Mi Lee & Won-Gu Kang & Sang-Yoon Kim & Jong Hyuk Lee & Dong-Churl Suh, 2019. "Improving Patient Access to New Drugs in South Korea: Evaluation of the National Drug Formulary System," IJERPH, MDPI, vol. 16(2), pages 1-15, January.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:2:p:288-:d:199479
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/16/2/288/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/16/2/288/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Degtiar, Irina, 2017. "A review of international coverage and pricing strategies for personalized medicine and orphan drugs," Health Policy, Elsevier, vol. 121(12), pages 1240-1248.
    2. Simon Walker & Mark Sculpher & Karl Claxton & Steve Palmer, 2012. "Coverage with evidence development, only in research, risk sharing or patient access scheme? A framework for coverage decisions," Working Papers 077cherp, Centre for Health Economics, University of York.
    3. Vitry, Agnes & Roughead, Elizabeth, 2014. "Managed entry agreements for pharmaceuticals in Australia," Health Policy, Elsevier, vol. 117(3), pages 345-352.
    4. Ferrario, Alessandra & Kanavos, Panos, 2015. "Dealing with uncertainty and high prices of new medicines: A comparative analysis of the use of managed entry agreements in Belgium, England, the Netherlands and Sweden," Social Science & Medicine, Elsevier, vol. 124(C), pages 39-47.
    5. Sorenson, Corinna & Drummond, Michael & Bhuiyan Kahn, Beena, 2013. "Medical technology as a key driver of rising health expenditures: disentangling the relationship," LSE Research Online Documents on Economics 48043, London School of Economics and Political Science, LSE Library.
    6. Lesley Chim & Glenn Salkeld & Patrick Kelly & Wendy Lipworth & Dyfrig A Hughes & Martin R Stockler, 2017. "Societal perspective on access to publicly subsidised medicines: A cross sectional survey of 3080 adults in Australia," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-24, March.
    7. Joseph Golec & John Vernon, 2010. "Financial Effects of Pharmaceutical Price Regulation on R&D Spending by EU versus US Firms," PharmacoEconomics, Springer, vol. 28(8), pages 615-628, August.
    8. Rotar, Alexandru M. & Preda, Alin & Löblová, Olga & Benkovic, Vanesa & Zawodnik, Szymon & Gulacsi, Laszlo & Niewada, Maciej & Boncz, Imre & Petrova, Guenka & Dimitrova, Maria & Klazinga, Niek, 2018. "Rationalizing the introduction and use of pharmaceutical products: The role of managed entry agreements in Central and Eastern European countries," Health Policy, Elsevier, vol. 122(3), pages 230-236.
    9. Bae, Eun-Young & Hong, Ji-Min & Kwon, Hye-Young & Jang, Suhyun & Lee, Hye-Jae & Bae, SeungJin & Yang, Bong-Min, 2016. "Eight-year experience of using HTA in drug reimbursement: South Korea," Health Policy, Elsevier, vol. 120(6), pages 612-620.
    10. Weon-Young Lee & Ian Shaw, 2014. "The Impact of Out-of-Pocket Payments on Health Care Inequity: The Case of National Health Insurance in South Korea," IJERPH, MDPI, vol. 11(7), pages 1-15, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Se Hee Lee & Seung-Lai Yoo & Joon Seok Bang & Jong Hyuk Lee, 2020. "Patient Accessibility and Budget Impact of Orphan Drugs in South Korea: Long-Term and Real-World Data Analysis (2007–2019)," IJERPH, MDPI, vol. 17(9), pages 1-8, April.
    2. Jae Ho Jung & Dae Jung Kim & Kangho Suh & Jaeeun You & Je Ho Lee & Kyung In Joung & Dong Churl Suh, 2021. "International Price Comparisons of Anticancer Drugs: A Scheme for Improving Patient Accessibility," IJERPH, MDPI, vol. 18(2), pages 1-14, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jae Ho Jung & Dae Jung Kim & Kangho Suh & Jaeeun You & Je Ho Lee & Kyung In Joung & Dong Churl Suh, 2021. "International Price Comparisons of Anticancer Drugs: A Scheme for Improving Patient Accessibility," IJERPH, MDPI, vol. 18(2), pages 1-14, January.
    2. Kisser, Agnes & Tüchler, Heinz & Erdös, Judit & Wild, Claudia, 2016. "Factors influencing coverage decisions on medical devices: A retrospective analysis of 78 medical device appraisals for the Austrian hospital benefit catalogue 2008–2015," Health Policy, Elsevier, vol. 120(8), pages 903-912.
    3. Vogler, Sabine & Zimmermann, Nina & de Joncheere, Kees, 2016. "Policy interventions related to medicines: Survey of measures taken in European countries during 2010–2015," Health Policy, Elsevier, vol. 120(12), pages 1363-1377.
    4. Marcelien H. E. Callenbach & Rick A. Vreman & Aukje K. Mantel-Teeuwisse & Wim G. Goettsch, 2022. "When Reality Does Not Meet Expectations—Experiences and Perceived Attitudes of Dutch Stakeholders Regarding Payment and Reimbursement Models for High-Priced Hospital Drugs," IJERPH, MDPI, vol. 20(1), pages 1-12, December.
    5. Veronika Kalouguina & Joël Wagner, 2020. "Challenges and Solutions for Integrating and Financing Personalized Medicine in Healthcare Systems: A Systematic Literature Review," JRFM, MDPI, vol. 13(11), pages 1-22, November.
    6. Löblová, Olga & Csanádi, Marcell & Ozierański, Piotr & Kaló, Zoltán & King, Lawrence & McKee, Martin, 2019. "Alternative access schemes for pharmaceuticals in Europe: Towards an emerging typology," Health Policy, Elsevier, vol. 123(7), pages 630-634.
    7. Bae, Eun-Young & Lim, Min Kyoung & Lee, Boram & Bae, Green, 2020. "Who should be given priority for public funding?," Health Policy, Elsevier, vol. 124(10), pages 1108-1114.
    8. Haitham W. Tuffaha & Paul A. Scuffham, 2018. "The Australian Managed Entry Scheme: Are We Getting it Right?," PharmacoEconomics, Springer, vol. 36(5), pages 555-565, May.
    9. Wettstein, Dominik J. & Boes, Stefan, 2022. "How value-based policy interventions influence price negotiations for new medicines: An experimental approach and initial evidence," Health Policy, Elsevier, vol. 126(2), pages 112-121.
    10. Kanavos, Panos & Visintin, Erica & Gentilini, Arianna, 2023. "Algorithms and heuristics of health technology assessments: A retrospective analysis of factors associated with HTA outcomes for new drugs across seven OECD countries," Social Science & Medicine, Elsevier, vol. 331(C).
    11. Paula K. Lorgelly & Amanda Adler, 2020. "Impact of a Global Pandemic on Health Technology Assessment," Applied Health Economics and Health Policy, Springer, vol. 18(3), pages 339-343, June.
    12. Toon van der Gronde & Carin A Uyl-de Groot & Toine Pieters, 2017. "Addressing the challenge of high-priced prescription drugs in the era of precision medicine: A systematic review of drug life cycles, therapeutic drug markets and regulatory frameworks," PLOS ONE, Public Library of Science, vol. 12(8), pages 1-34, August.
    13. Anderson, Pippa & Webb, Philip & Groves, Sam, 2017. "Prioritisation of specialist health care services; not NICE, not easy but it can be done," Health Policy, Elsevier, vol. 121(9), pages 978-985.
    14. Sabine Vogler & Valérie Paris & Alessandra Ferrario & Veronika J. Wirtz & Kees Joncheere & Peter Schneider & Hanne Bak Pedersen & Guillaume Dedet & Zaheer-Ud-Din Babar, 2017. "How Can Pricing and Reimbursement Policies Improve Affordable Access to Medicines? Lessons Learned from European Countries," Applied Health Economics and Health Policy, Springer, vol. 15(3), pages 307-321, June.
    15. Maurizio Bussolo & Johannes Koettl & Emily Sinnott, 2015. "Golden Aging," World Bank Publications - Books, The World Bank Group, number 22018.
    16. Júlia Varga, 2017. "Out-migration and attrition of physicians and dentists before and after EU accession (2003 and 2011): the case of Hungary," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(9), pages 1079-1093, December.
    17. Bae, Eun-Young & Hong, Ji-Min & Kwon, Hye-Young & Jang, Suhyun & Lee, Hye-Jae & Bae, SeungJin & Yang, Bong-Min, 2016. "Eight-year experience of using HTA in drug reimbursement: South Korea," Health Policy, Elsevier, vol. 120(6), pages 612-620.
    18. Shuli Brammli-Greenberg & Ira Yaari & Elad Daniels & Ariella Adijes-Toren, 2021. "How Managed Entry Agreements can improve allocation in the public health system: a mechanism design approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(5), pages 699-709, July.
    19. Jorge Barros-Garcia-Imhof & Andrés Jiménez-Alfonso & Inés Gómez-Acebo & María Fernández-Ortiz & Jéssica Alonso-Molero & Javier Llorca & Alejandro Gonzalez-Castro & Trinidad Dierssen-Sotos, 2022. "Perception of Medical Students on the Need for End-of-Life Care: A Q-Methodology Study," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    20. Jiae Shin & Dongwoo Ham & Hee Young Paik & Sangah Shin & Hyojee Joung, 2021. "Gender Differences in the Risk of Ischemic Heart Disease According to Healthcare Utilization and Medication Adherence among Newly Treated Korean Hypertensive Patients," IJERPH, MDPI, vol. 18(3), pages 1-13, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:16:y:2019:i:2:p:288-:d:199479. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.