Reimbursement and Market Access for Drugs in Korea
Obtain a high drug reimbursement price from Korea’s HIRA.
To learn more about Korea drug reimbursement, please contact us.
After drug registration in Korea, drug manufacturers will seek reimbursement. The National Health Insurance (NHI) scheme in Korea supports reimbursement for drugs in Korea, although some drugs can be sold in Korea without reimbursement. HIRA, the National Health Insurance Review Agency will determine if the drug is appropriate to get reimbursement under the NHI system. At HIRA, there is a Drug Evaluation and Review Committee that specifically evaluates the drug’s cost-effectiveness.
To be listed for Korean reimbursement, drugs need to have a Pharmacoeconomic Evaluation (PE) by HIRA. Then a price is negotiated by HIRA and the National Health Insurance Service (NHIS) which will be the highest price hospitals can charge for a specific drug product. Final pricing will be determined based on health economics that shows the drug’s superiority over existing therapies, or alternatively, for similar products, a weighted average will be calculated. For new drugs (cancer and pediatrics) without competitors, a PE is not needed. Risk Sharing Agreements (RSA) can also help cover the cost of innovative treatments. Drug companies that do not like HIRA’s drug pricing can ask for a re-evaluation of pricing.
Despite a rapidly aging population that needs more new innovative therapeutic treatments, drug reimbursement in Korea has generally continued to fall. This trend has hampered Korea’s ability to attract new high-priced drugs and this issue is currently being debated in-country.
To learn more about Korea drug reimbursement, please contact us.
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