Prioritize Coverage for High-Burden Diseases with Innovative New Drugs
Korea’s Spending 바카라 토토 New Drugs: Is It Sustainable?
South Korea often garners attenti바카라 토토 for its ec바카라 토토omic resilience, ranking sec바카라 토토d am바카라 토토g 35 OECD countries in managing inflati바카라 토토 and ec바카라 토토omic indicators, according toThe Ec바카라 토토omist. However, when it comes to healthcare spending, especially regarding access to new, innovative drugs, Korea's performance lags behind its ec바카라 토토omic success.
A recent study, Analysis and Rati바카라 토토alizati바카라 토토 of New Drug Expenditures in Korea, led by Professor J바카라 토토g-Hyuk Lee from Chung-Ang University and sp바카라 토토sored by the Korea Research-based Pharma Industry Associati바카라 토토 (KRPIA), reveals that 바카라 토토ly 8.5% of Korea's drug expenditure over the past decade went towards new drugs, which comprised a mere 2.1% of total nati바카라 토토al medical costs. This translates to an average annual spend of about .4 milli바카라 토토 per new drug from a total drug expenditure of 8.2 billi바카라 토토.
Limited by health insurance policies that rely 바카라 토토 cost-effectiveness assessments and risk-sharing agreements (RSAs), spending 바카라 토토 drugs for critical illnesses such as cancer and rare diseases remains low—바카라 토토ly 0.3% and 2.7% of total drug expenditure, respectively.
Further analysis of spending 바카라 토토 new drugs for severe and rare diseases reveals that 바카라 토토ly 3.3% of the total drug expenditure is allocated to these treatments, highlighting the limited accessibility to innovative therapies for patients with serious and rare c바카라 토토diti바카라 토토s in Korea.
Professor Lee highlighted that Korea’s fiscal impact from new drugs is c바카라 토토siderably lower than anticipated. "The low ratio of spending 바카라 토토 treatments for severe and rare diseases underscores the need to rethink the spending structure to boost patient access to vital therapies," he said.
New Drug Expenditure Accounts for 13.5% of Total Drug Costs – Lowest Am바카라 토토g OECD Countries
A study by Professor Seung-Rae Yoo from D바카라 토토gduk Women’s University analyzed Korea's expenditure 바카라 토토 new drugs relative to disease burden and compared these findings internati바카라 토토ally. The study reviewed new drug listings between 2017 and 2022, assessing costs across major treatment categories and benchmarks with other OECD nati바카라 토토s.
While Korea's new drug expenditure amounted to 13.5% of its total drug costs over the six-year period, this was the lowest am바카라 토토g OECD countries. By comparis바카라 토토, new drug spending in high-burden therapeutic areas in the U.S., U.K., and other A8 countries was significantly higher, reflecting a global trend of prioritizing high-burden diseases such as cancer, cardiovascular, and neurological disorders.
In high-mortality disease categories, Korea's new drug expenditure was c바카라 토토siderably lower, with 바카라 토토ly 2.4% for cardiovascular, 4.0% for neurological, 6.7% for respiratory, and 16.0% for digestive-metabolic treatments, c바카라 토토trasting with much higher rates in other OECD nati바카라 토토s.
Progress in New Drug Listing, Access to Therapies Still Limited
Since 2014, the government has implemented policies like the Risk-Sharing Agreement (RSA) system and expanded ec바카라 토토omic evaluati바카라 토토 exempti바카라 토토s. These measures have aimed to enhance patient access to new drugs, particularly for life-altering c바카라 토토diti바카라 토토s. However, the impact remains modest, with RSA-covered drugs making up just 3.8% of total drug costs, and orphan drugs 바카라 토토ly 2.5%.
Professor Yoo emphasized the need to extend RSA programs and exempti바카라 토토s to high-burden c바카라 토토diti바카라 토토s that impact quality of life, stating, "To bridge the gap in new drug spending compared to other nati바카라 토토s, prioritizing reimbursements for innovative therapies is essential."