Government plans to utilize generic drugs
Multinational pharmaceutical companies doing business in Korea are expected to reject government plans to cut the number of drugs covered by insurance. The plan is part of a drive to limit insurance coverage only to cost-effective drugs. The Korean Research-based Pharmaceutical Industry Association (KRPIA), made up of 26 international drug companies, announced it would hold a June 15 press conference to make its official position clear. The plan was announced by the Ministry of Health and Welfare May 3. The ministry hopes the new system will be a boon to the generic drug industry in South Korea, in turn stabilizing medical fees. Multinational pharmaceutical companies have said the new plan limits patients’ rights of access to newly-developed drugs, which would not be exempt from the government cuts.On the government’s overall plan to reduce medical costs, Wendy Cutler, chief negotiator of the U.S. free trade agreement talks, has said that the Korean policy would seriously damage the negotiations.
