NHI (National Health Insurance) Drug Pricing System Reflecting the Value of New Drugs Proposal for an Application Price Consultation System

Naoya Fujiwara ( The Office of Pharmaceutical Industry Research Senior Researcher)
Mikio Sasabayashi ( The Office of Pharmaceutical Industry Research Senior Researcher)
Mitsuaki Yamamoto( The Office of Pharmaceutical Industry Research Senior Researcher)
Haruhiko Nobayashi ( The Office of Pharmaceutical Industry Research Senior Researcher)

(No.28: Published July 2005)

With the healthcare reform scheduled for fiscal 2006 just around the corner, discussions on measures to optimize healthcare costs, including a review of the scope of public insurance benefits, are now in full swing in various quarters. Discussions are also underway at the Central Social Insurance Medical Council regarding a review of the NHI drug price calculation rules with a view to fundamental reform of the drug price standard system.

Under these circumstances, The Office of Pharmaceutical Industry Researchhas been studying how the NHI drug price system should be so that the value of new drugs is appropriately reflected in NHI prices and the creation of new drugs is promoted. In particular, we are aware that the current NHI drug price system does not always reflect the value of new drugs appropriately, and that it cannot adequately respond to the diversification of the value of new drugs due to future technological innovation.

In this report, we provide the background to our proposal and make new proposals regarding the "application price consultation method" and the establishment of a "forum for dialogue between the government and industry" for calculating the NHI price of new drugs.

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