‘Multiple-indication drugs improve survival rates’

“We need to improve treatment access to these drugs”

KRPIA holds a policy forum on “Eliminating inequality in access to innovative new drugs and improving regulations” with Rep. Mi-hwa Seo

Discussed solutions to the reality of delays in reimbursement for drugs with multiple indications compared to other countries

Hosted by KRPIA

The Korean Research-based Pharmaceutical Industry Association (KRPIA) announced on the 24th that it successfully hosted a “Policy Forum on Eliminating Inequality in Innovative New Drugs and Improving Regulations” with Representative Mi-hwa Seo, Representative Byeong-Hoon So, Representative Yoon Kim, and Representative Jong-tae Jang (Health and Welfare Committee) of the Democratic Party of Korea.

 

The policy forum, held at the National Assembly Office Building, aimed to explore measures to improve access to innovative new drugs for patients with severe and rare diseases so they can receive timely treatment, and to gather opinions from various sectors.

 

The symposium was attended by co-hosts Rep.

 

Mi-hwa Seo and Rep.

 

Yoon Kim, as well as keynote speakers Jung-yong Hong, Professor of Oncology at Samsung Medical Center, and Professor Jung-hoon Ahn, Professor of Health Convergence at Ewha Womans University.

 

The discussion panel included key figures from the government, the medical community, patient groups, the media, and the pharmaceutical industry, such Lee Jung-kyu as, Director of the Health Insurance Policy Division at MOHW; Hyung-min Kim, Director of the Department of Drug Management at the National Health Insurance Service; Ji-yong Moon, Professor at Konkuk University Medical Center; Gi-jong Ahn, Representative of the Korea Alliance of Patients Organization; Yoonho Eo, reporter at Dailpyharm; and Hyeryun Bang, Director at AstraZeneca Korea.

 

The discussion was moderated by Dong-Cheol Seo, Director of the Korea Institute for Pharmaceutical Policy Affairs.

 

In her opening remarks, Rep Mihwa Seo said, “When patients miss their chance for treatment, the costs go beyond simple medical losses and become enormous social costs,” emphasizing that “the fundamental reasons for the low accessibility of new drugs in Korea lie in the rigidity of the overall system, including the procedural complexity of the reimbursement listing system, the economic evaluation-centered assessment model, and the uniform drug price structure.

 

The government must assume a responsible role in addressing all factors that have a substantial impact on patients' lives.” In his greeting, KRPIA Chair Kyung-Eun Bae said, “New drugs with multiple indications greatly contribute to improving patient survival rates and quality of life, but their value is not fully reflected due to the structural limitations of the domestic reimbursement system.

 

I hope that patients' treatment opportunities will be expanded by reflecting the differences in therapeutic effects, number of patients, and availability of alternative treatments for each indication, even for the same drug.” In his keynote speech, Jung-yong Hong, Professor of Oncology at Samsung Medical Center, addressed the structural issues of clinical value and accessibility imbalances in innovative new drugs under the theme of “Regulatory Improvement Tasks for Addressing Inequality and Improving Accessibility of Innovative New Drugs in Korea.” He pointed out that innovative new drugs with different mechanisms of action from existing treatments are effective for various indications, meet unmet medical needs, and have received high prescription recommendation ratings in global guidelines, but patients in Korea are unable to obtain actual treatment opportunities due to limitations in the reimbursement system.

 

In particular, he mentioned that reimbursement for drugs with multiple indications is delayed compared to other countries and raised the need for policy attention and institutional reform to improve accessibility.

 

In the second presentation, Jung-hoon Ahn, Professor of Health Convergence at Ewha Womans University, emphasized the need for a value-based drug pricing system, focusing on the fact that the therapeutic effects and social value of drugs vary depending on their indications.

 

For this, Ahn introduced the “blended pricing” system, in which drug prices vary depending on the number of patients, the availability of alternative treatments, and cost-effectiveness, even for the same drug.

 

He explained that this system, which is already in place in several countries, could serve as an alternative solution that not only reflects the value and usage of each indication but also enhances the sustainability of health insurance finances and patient access.

 

The subsequent panel discussion delved into in-depth discussions on field experiences and potential institutional improvements.

 

Gi-jong Ahn, Representative of the Korea Alliance of Patients Organization, said, “It is difficult for patients to understand why certain indications are not covered by health insurance and therefore cannot be used.

 

Despite financial concerns, considering the examples of countries that have introduced blended pricing systems, South Korea also needs to consider introducing such a system quickly and improve access to treatment.

 

Jung-kyu Lee, Director of the Health Insurance Policy Division at MOHW, said, “Many newly approved drugs have multiple indications,” adding, “The government agrees that it is time to review the blended pricing system.” He added, “We will carefully examine whether this is a problem with existing practices or a limitation of the system, and if there are systemic problems, the health authorities will comprehensively review and discuss improvement measures with the Health Insurance Review and Assessment Service and the National Health Insurance Service.” Hyung-min Kim, Director of the Department of Drug Management at the National Health Insurance, said, “Careful system design is required based on financial stability, patient accessibility, and connectivity with other systems.”