FACTORS CONTRIBUTING TO THE NATIONAL DRUG EXPENDITURE OF KOREA, 2010-2015- FOCUSING ON THE CORE THERAPEUTIC CLASSES
Author(s)
Oh R1, Na Y2, Ryu M2
1HIRA (Health Insurance Review & Assessment Service), Wonju-si, Gangwon-do, Korea, Republic of (South), 2Health Insurance Review & Assessment Service, Wonju-si, Gangwon-do, Korea, Republic of (South)
OBJECTIVES: Korea's drug expenditure as a share of total health spending is 20.6%(OECD, 2016) and it is increasing by +1.7% CAGR(Compound Annual Growth Rate). The aims of this study were to explore the factors contributing to the growth of pharmaceutical expenditure and decompose the growth focusing on the core therapeutic classes. METHODS: From the National Health Insurance(NHI) Claims Data of year 2010 to 2015, eight core therapeutic classes were extracted - 1) anti-hypertensives, 2) anti-hyperlipidemics, 3) anti-infectives, 4) anti-diabetics, 5) anti-tumor and immune depressants, and drugs acting on the 6) nervous system, 7) genito urinary system and sex hormones, and 8) muscular system. Laspeyres' decomposition method which appraises the expenditure change caused by each contributing factor was used. The factors included were price effect, volume effect, entrance drug effect, existing drug effect, exiting drug effect, NHI coverage expansion effect, and cross effect. RESULTS: The drug expenditure of eight core therapeutic classes(80 billion dollars) has increased by 15.2% between 2010 and 2015. The factors contributed to the increase were entrance drug effect(+24.2%), volume effect(+20.3%), and NHI coverage expansion effect(+6.5%). On the other hand, price effect(-24.6%), existing drug effect(-3.4%), and exiting drug effect(-2.2%) have led to the decrease of drug expenditure. The entrance drug effect was significant for anti-diabetics, anti-tumor and immune depressants and anti-hypertensive drugs while substantial volume effects were observed for the drugs acting on the genito urinary system and sex hormones and anti-tumor and immune depressant drugs. CONCLUSIONS: Although price effect has contributed to the substantial decrease of Korea's drug expenditure, the total pharmaceutical expenditure has increased because entrance drug effect and volume effect were large enough to offset the price effect. Therefore, to control Korea's pharmaceutical expenditure, policies for monitoring the price of new drugs and managing the volume of drug utilization are required.
Conference/Value in Health Info
2017-11, ISPOR Europe 2017, Glasgow, Scotland
Value in Health, Vol. 20, No. 9 (October 2017)
Code
PHP87
Topic
Economic Evaluation
Topic Subcategory
Cost/Cost of Illness/Resource Use Studies
Disease
Cardiovascular Disorders, Diabetes/Endocrine/Metabolic Disorders, Multiple Diseases, Oncology