South Korea to cut foreign drug prices

The South Korean Ministry of Health and Welfare plans to cut the prices of drugs made by foreign firms, reduce the number of drugs covered by insurance and pay for only what it deems are cost-effective and price-competitive products, according to a report carried by the Korea Herald. At present, the national health insurance scheme covers most products, irrespective of price, as long as they are approved by the Korean Food and Drug Administration and widely prescribed by doctors.

While the measures have been scheduled to begin in September, the implementation could be delayed, the Ministry noted.

About 4,705 obsolete drugs will be struck from the current list of 21,740 insured medicines, the reports said. The Ministry also plans to readjust prices of brand name drugs when their patents expire and re-evaluate how generics are made and sold.