Japan's Chuikyo agrees NIH drug price premium for innovativeness

Japan's Central Social Insurance Medical Council, the Chuikyo, has agreed to an increase in the premium rate for innovativeness, usefulness, pediatric use and orphan status under the National Health Insurance drug pricing system, and the extension of the applicable scope for targeted medications for recalculation of the NHI price due to the market expansion. The decision was taken at at its expert committee on NHI drug prices, which was held at the Ministry of Health, Labor and Welfare.

In the wake of discussions on the proposal for the 2008 reform of the NHI drug pricing system presented by the MHLW, the expert committee agreed in principle to increase the premium rate for innovativeness from 50%-100% to 70%-120%, for usefulness (I) from 25%-40% to 35%-60%, for usefulness (II) from 5%-20% to 5%-30%, for pediatric medicines from 3-10% to 5-20%, for orphan drugs (I) from 10% to 10-20%, for orphan drugs (II) from 3% to 5% and for kit products from 3% to 5%. Among the above, the usefulness (II) category has been applied most frequently so far.

Although the premium rates for newly-listed drugs will be significant, the applicable scope of those already listed whose prices are reduced based on the recalculation with market expansion beyond their expectation on the launch should be expanded, the proposal recommends.