The NHIS continues to monitor foreign drug prices after signing and listing a drug price reduction contract linked to foreign prices for drugs exempt from economic evaluation in accordance with the drug price negotiation guidelines.

In the past three years from 2018 to 2020, after 30 items of 14 pharmaceutical companies were listed on the list, they signed a contract stating that drug prices would be reduced if foreign prices lower than the domestic upper limit were confirmed.

Among them, 6 items in 2018 and 15 items in 2019 received the lowest price.

In particular, from 2019, the number of countries subject to foreign drug price linkages has been expanded from the lowest price of the newly listed country to the lowest price of all countries, and the price fluctuations of not only newly listed foreign drugs but also existing listed drugs have affected the domestic market.

Japan, one of the A7 countries, implemented an ICER re-evaluation for registered drugs in April 2019, and drug price adjustments were made. If the price of the registered drugs fell to the lowest A7 due to drug price cuts, it is reflected in Korea,too.

The NHIS uses the upper limit price in Taiwan, Singapore, and countries affiliated with the Organization for Economic Development Cooperation (OECD) as a reference price for drug price negotiation in accordance with Article 7 of the Drug Price Negotiation Guidelines.

In the case of drugs exempt from economic evaluation, agreements have been made on drug price reductions, such as adjusting the upper limit in conjunction with the lower amount when it is confirmed that the adjusted price is lower than the upper limit for each A7 country.

Foreign drug prices referenced by The NHIS can be checked on the website. The NHIS has created a bulletin board for foreign drug price inquiry guidelines since 2019, and has released sites in 38 countries, including OECD member countries and Taiwan and Singapore, which are referring to drug price negotiations.