Price increase negotiations to address drug shortages in South Korea’s national health insurance

Description

Seung Rae Yu and Jong Hyuk Lee analyze South Korea's use of price hikes to fight drug shortages. Their study was published in twenty twenty-three. Within the national health insurance, the state negotiates higher pay for scarce drugs to keep makers supplying them.

From twenty oh seven to twenty twenty-two, two hundred and forty-four items went through price talks. Deals closed on two hundred and seventeen, a success rate near ninety percent. The average raise was about thirty-eight percent. Total drug spending for the raised items grew by roughly a quarter. After twenty fifteen fewer items were negotiated, but each carried a bigger budget weight. The analysis weighs a rare policy tool that spends more by design to protect supply.

Catalog record

Source: https://europepmc.org/articles/PMC10725904