Low insurance reimbursement rates in Taiwan are discouraging the development of innovative pharmaceutical products, according to a study by Fitch Solutions.
Because essential healthcare for all residents of the island nation is covered by a single public system, and hospitals negotiate with drug companies for bulk discounts, drug prices are relatively low, the report found. While that is advantageous to consumers who use drugs currently on the market, it diminishes incentives for pharmaceutical companies to develop or to import cutting-edge drugs to Taiwan.