‘Pricing reform should not be finalized without reporting to NA’

MOHW Minister Eun Kyeong Jeong “Reform plan still incomplete...need to gather more industry opinions through two Health Insurance Policy Review Subcommittee meetings”

Committee chair Joo-min Park, “Minister should report to the committee after discussions conclude for the reform”

Rep. Sunmin Kim of the Rebuilding Korea Party criticized the Ministry of Health and Welfare, saying it should not move forward with approving and implementing a drug pricing reform plan— which primarily involves lowering generic drug prices— by having it approved by the Health Insurance Policy Review Committee without reporting to the National Assembly.

Kim effectively put the brakes on the ministry after it attempted to proceed with the March schedule for subcommittee and full meetings of the Health Insurance Policy Deliberation Committee (HIPDC) without including any mention of the drug pricing reform plan in its 2026 annual policy briefing to the National Assembly, despite the issue being of the utmost concern to the pharmaceutical industry.

National Assembly Health and Welfare Committee Joomin Park of the Democratic Party of Korea also agreed with Kim on the need for a separate briefing on the reform plan. Addressing Health and Welfare Minister Eun Kyeong Jeong, Park said, “Because this is a very important issue, it would be appropriate to provide an additional briefing at the committee’s plenary meeting after concluding your discussions on the reform plan.”

At the full committee meeting on the 10th, Minister Jeong responded affirmatively to Rep. Kim's procedural remarks and Chairman Park's request for an additional briefing on the drug pricing system reform plan, saying the ministry would comply.

Consequently, it is highly likely that the MOHW will provide a separate briefing on the direction of the drug pricing system reform plan at the full committee meeting of the National Assembly's Welfare Committee this month (March), after subcommittee discussions and before the full committee vote.

Currently, the ministry plans to hold a one-point HIPDC subcommittee meeting on March 11, followed by further discussion at another subcommittee meeting on March 18, before bringing the reform plan to the HIPDC plenary meeting on March 26 for approval. This plan includes lowering the pricing calculation rate for already listed generic drugs from the current 53.55% to the 40% range.

The pharmaceutical industry has criticized the proposal as a mechanical, across-the-board “lawnmower-style” price cut, presenting 48% as their absolute bottom line for the generic drug calculation rate.

With the gap between the MOHW and the pharmaceutical industry over the reform plan showing no signs of narrowing, Rep. Kim raised the issue through a procedural remark as the MOHW attempted to pass the plan without reporting it to the National Assembly.

Rep. Kim stated, “After reviewing the MOHW's briefing materials, I question what the most pressing issue in current healthcare policy actually is. From what I understand, the drug pricing system reform is the topic most intensely discussed in the media and policy circles recently.”

Kim continued, “I hear that tomorrow and next week, the HIPDC subcommittee will finalize the generic drug price reduction ratio. Following HIPDC deliberations at the end of March, discussions are proceeding with the goal of implementation next January. Yet, such an important policy report was not included among today’s key briefing items.”

Kim added, “At this rate, there are concerns that the government could proceed with the drug pricing reform without reporting it to the relevant standing committee of the National Assembly. Therefore, I ask the Chairman to ensure that the MOHW clearly reports on the drug pricing system reform currently being pursued during today's briefing.”

When Chair Park asked Minister Jeong whether she could provide an immediate briefing on the reform plan, Jeong replied, “We plan to hold about two more discussions in the HIPDC subcommittee to further coordinate opinions and gather more diverse input from the industry. As the proposal has not yet been finalized, we will review the progress and provide either a written report or a separate briefing.”

In response, Park demanded that the MOHW prepare to provide an additional briefing at the committee’s plenary session, given the critical nature of the drug pricing system reform plan being pursued by the MOHW.

Park stated, “Since additional processes and procedures remain (regarding the reform plan), individual briefings are fine, but because this is an extremely important issue, it would be better to provide an additional report at the committee’s plenary meeting once the discussions are complete.