PRICING AND REIMBURSEMENT POLICY UPDATES IN ASIA

Author(s)

Paranjoy S, Kaushik P, Kaur S, Sharma S, Sehgal M
HERON™ Commercialization, PAREXEL® International, Chandigarh, India

OBJECTIVES: Pharmacoeconomics and outcomes research (PEOR) has emerged as a key decision-making tool to optimize patient care and add value to healthcare services. Considering the strategic importance of Asian markets and economic constraints in the pharmaceutical sector, an understanding of current pricing strategies become vital for market authorization holders as well as payers. METHODS: An assessment of healthcare policies, pricing systems, and reforms impacting reimbursement and market access environment was undertaken across major Asian markets (Japan, China, South Korea, and India). Information sources included online portals of regulatory agencies and relevant keyword searches. RESULTS: Health policy decisions over recent years have indicated varying levels of priorities and interests within Asia. Japan continues to increase healthcare investments and attempts are being made to expedite drug approval process. Despite a robust pricing mechanism, Japanese pharmacoeconomic guidelines are yet to be implemented. Public health expenditure in China has witnessed almost 50% growth since 2004. Chinese pharmacoeconomic guidelines are now in practice and pricing norms have gained more structure with the introduction of external referencing and price negotiations with drug companies. In South Korea, pharmacoeconomic guidelines are well-established and the current focus is on cost-containment measures like profit controls and price cuts. Pharmacoeconomics in India is still in its nascent stage but the 2013 Drugs (Prices Control) Order (DPCO) included radical changes focussing on market-based pricing. Furthermore, the introduction of price negotiation mechanisms is also being considered by the Department of Pharmaceuticals (DoP) in India. CONCLUSIONS: The focus on PEOR by reimbursement agencies in the West has compelled their Asian counterparts to revisit pricing policies. Japan has started drafting pharmacoeconomic guidelines, while Chinese and South Korean governments have implemented new mechanisms to manage drug prices. In India, the DoP has encouraged revisions in the DPCO and further reforms in pricing mechanisms are expected in the near future.

Conference/Value in Health Info

2014-09, ISPOR Asia Pacific 2014, Beijing, China

Value in Health, Vol. 17, No. 7 (November 2014)

Code

PHP17

Topic

Health Policy & Regulatory, Health Service Delivery & Process of Care, Health Technology Assessment, Organizational Practices, Real World Data & Information Systems

Topic Subcategory

Academic & Educational, Approval & Labeling, Decision & Deliberative Processes, Health & Insurance Records Systems, Health Care Research, Pricing Policy & Schemes, Reimbursement & Access Policy

Disease

Multiple Diseases

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