Actual Transaction Price Reimbursement System(실거래가상환제)

: Actual Transaction Price Reimbursement System has been introduced since October 2010 to encourage healthcare institutions to purchase at a lower price, by compensating for 70% of the gap between the actual transaction price and the notified upper price limit of the drug.

Reference Pricing System(참조가격제 or 적정기준가격제)

: Reference Pricing System for pharmaceuticals aims to encourage patients to choose cost-effective medicines (usually) by providing coverage amounting only to the price of the least costly drugs with similar therapeutic effectiveness.

Fair Competition Code(공정 경쟁 규약)

: Fair Competition Code in Pharmaceutical Trade is to ensure public order of fair competition in distributing pharmaceuticals, and to maintain and improve the health of the public by curbing unfair customer solicitation activities prohibited by Item 3(An act unfairly coercing or inducing customers of competitors to deal with oneself;) of Paragraph 1 of Article 23 of the Monopoly Regulation and Fair Trade Law.

Market based Actual Transaction Price(시장형실거래가제)

: Market based Actual Transaction Price ; distortions under M-ATP is described as an "incentives system for low-price purchase". It was first introduced in 2010, but suspended for one year in August 2011 and again in 2012 as a concession measure amid drug price cuts, before being reinstated from 1 February 2014. Under the scheme, hospitals, clinics, and pharmacies were required to report actual transaction prices paid for National Health Insurance (NHI)-listed medicines to the Health Insurance Review and Assessment Service (HIRA), which used these data to make annual adjustments to NHI prices. Controversially, the M-ATP also offered a 70% rebate to hospitals and pharmacies on the difference between transaction prices and MRPs, encouraging hospitals to seek discounts below NHI list prices.  

A positive list system(선별등재제도)

: A positive list system is defined as an exhaustive compilation of pharmaceutical products and medical devices that can be prescribed and/or reimbursed under a Party’s public health care programme(s).

A negative list system(포괄적등재제도)

: A negative list system is defined as a compilation of pharmaceutical products and medical devices that have been excluded from being prescribed and/or reimbursed under a Party’s public health care programme(s).

Dual Punishment System(리베이트 쌍벌제)

: Dual Punishment System is the drug anti-rebate law, with the purpose of eradicating pervasive, unethical, and illegal rebate practices in pharmaceutical marketing. The main objective of this law is to have the ability to bring criminal charges against doctors and pharmacists for receiving illegal kickbacks from drug companies. Previously, provision of illegal kickbacks by drug companies led to criminal punishment of the drug companies alone, leaving doctors and pharmacists unpunished as the recipients. With the introduction of the "Dual Punishment System (DPS)" reform, criminal punishment for illegal rebates is extended to those receiving illegal kickbacks.

Price-volume agreement(사용량 약가 연동제)

: Price-volume agreement is a system in which if the financial burden is too heavy a burden due to sales increased more than expectation, NHIS negotiates with pharmaceutical companies to cut through the price of medicines. By improving the standard to select medicines for negotiation of 'Price-volume agreement', MFDS decided to manage the sum of the charges of products which have same route of administration, dosage form, content and belong to the same company, even if content, product specifications and packaging unit is different.

Risk sharing(위험분담제도)

: Risk sharing is the system in which pharmaceutical companies share part of financial expenses in such a way as reimbursement for medicines that have a risk in efficacy, effectiveness and impact of insurance finance. Risk-sharing is not applied to all medicines. It only applies to the new medicines which are permitted by MFDS and proved their safety and effectiveness, just in case of expensive anti-cancer drug that doesn't have any alternative, medicine for rare and incurable disease threatening survival.

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