Prof. Hae Sun Suh, Mpharm, MA, PhD

Pusan National University, Korea

To give you an overview of the Korean health care system, the entire population of Korea is covered by national health insurance starting in 1989. But they have to pay out of pocket. People are aware of the cost that they are paying when they are using the healthcare services. Basically in Korea, the payment system is pay for service. It is categorized by the types of drugs; medical supplies, including diagnostic and devices; and health care procedures.

 

For the drugs, we have a list of drugs that are covered in the health insurance scheme. In order to get to that list, pharmaceutical companies have to submit the cost effectiveness data or HTA data to the agency. We have the reimbursement receiving prices. If the drugs sell in the market below that sitting price, then that actual price is going to be reimbursed. But that price cannot go above the sitting prices. For the medical supplies, we have the list of what is covered, and what isn't. For the procedures we also have the same list.

 

Drugs and medical supplies, these two have different track when they seek government's approval. The drug and medical supplies need to get the approval from the Ministry of food and drug safety. For medical procedures, however, we can't give the approval if they aren't combined with drugs and/or medical supplies. After the approval, they have to get the reimbursement so that the patient can use it.

 

We adopted positive listing system in 2006. Pharmaceutical companies are allowed to apply for the coverage if they want to. All of these are based on data-driven decision process, where HTA plays a key role. If they want to get the coverage for new drugs, the company has to apply for it first and then HIRA will give a debt to view in term of the clinical benefit, feasibility, and the cost effectiveness. There will be reinvestment appraisal and then they going to make decision whether to list the drugs or not. Then it goes to another government agency and they proceed to the price negotiation.

 

During the economic evaluation, the new drugs will be compared to existing drugs. They compare the cost and the outcomes. The company has to produce the evidence to keep going on with that reimbursement.

 

For the medical procedures assessment process, the procedures will be evaluated alongside the medical devices and/or the drugs, in order to obtain the government's approval. All of these steps are based on the HTA guidelines.

 

We have been using HTA in health-related decision making process, and also, we try to make more medication accessible for all patients.