Patient and pharmacist groups criticize health authorities’ lenience toward pharma firms
The Ministry of Health and Welfare has postponed the reevaluation of drug reimbursement appropriateness scheduled to begin next year and is showing signs of easing sanctions against pharmaceutical companies with a history of illegal rebates, prompting strong backlash from patient groups and other critics.
The reimbursement appropriateness reevaluation system originated when the Korean Pharmacists for Democratic Society requested a public interest audit from the Board of Audit and Inspection. Its purpose is to prevent financial leakage in the national health insurance system by removing or reducing reimbursement for drugs deemed ineffective.
In response, the Korea Alliance of Patient Organizations and the Korean Pharmacists for Democratic Society issued a joint statement on Monday.
“The Lee Jae Myung administration must immediately cease its lenient approach toward pharmaceutical companies,” they said. “The Ministry of Health and Welfare must confirm the implementation of next year's reimbursement appropriateness reevaluation and halt its policy shift aimed at overlooking illegal rebates.”
They pointed out that pharmaceutical companies have already been delaying reevaluation decisions through administrative lawsuits, undermining public interest policies, and maximizing corporate profits.
The two groups cited the reevaluation of coverage for colin alfoscerate, Silymarin, Bilberry, streptokinase, and itopride as examples. According to them, reimbursement reductions for colin alfoscerate were stalled for five years, while Bilberry faced reimbursement delisting after four years. Silymarin litigation has remained ongoing for four years.
“The stay of execution, intended to safeguard the right to defend, is being strategically used to maximize corporate profits regardless of litigation outcomes,” they pointed out.
Furthermore, when the Ministry of Health and Welfare announced its policy to postpone next year's implementation of the drug reimbursement appropriateness reevaluation, they raised suspicions, asking, “Isn't this the full-scale implementation of a policy favoring pharmaceutical companies?”
They continued, “Ginkgo leaf extracts and dobesilate calcium, which are being discussed as candidates for next year's reevaluation, are being used as substitutes for choline alfoscerate and Bilberry, whose reimbursements were reduced, making their reevaluation urgent.”
The pharmacist and patient groups also expressed concern about changes to the Innovative Pharmaceutical Company certification system.
“Pharmaceutical companies have caused immense harm to patient health and the national health insurance finances by inducing prescriptions for expensive or unnecessary drugs through illegal rebates. It is self-evident that the government must take strong measures to eradicate illegal rebates,” they said.
Noting that the Innovative Pharmaceutical Company Certification system provides substantial benefits, including drug price premiums, tax reductions, and R&D support, they stressed, “It is absolutely unacceptable to extend these benefits to companies that have been penalized for illegal rebates.”
They quoted President Lee's statement from his 100-day press conference, saying, “President Lee declared he would ‘make an example of stock price manipulators,’ so the same attitude and resolve are needed regarding the illegal rebate issue.”
“The Ministry of Health and Welfare must stop its lenient approach toward pharmaceutical companies and pursue policies that prioritize the health insurance finances and the public's health above all else,” the joint statement said.