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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
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    References listed on IDEAS

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    Cited by:

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    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.

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