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Expensive drug prices reduced after inclusion in medical insurance

By Li Yan (People's Daily Online)    17:26, August 07, 2017
Expensive drug prices reduced after inclusion in medical insurance

Prices of 36 expensive drugs are now covered by medical insurance after authorities negotiated substantial price reductions. Half of the medicines are used for cancer treatment.

The Ministry of Human Resources and Social Security (MOHRSS) negotiated with pharmaceutical manufacturers concerning 44 drugs and managed to cut prices of 36 of them to be accepted for coverage by the medical insurance fund.

Half of the drugs are used for cancer treatment, including breast, lung and liver cancer. Compared with retail prices last year, prices of these drugs have decreased by 44 per cent on average, according to MOHRSS.

The price of trastuzumab, which is used to treat breast cancer, went down by 69 per cent to RMB 7,600 ($1,125). However, patients will pay RMB 1,500 for a trastuzumab injection after it is covered by medical insurance.

The price reduction will save patients much time and money. In the past, some patients were obliged to travel abroad to buy these drugs at cheaper cost.

Foreign pharmaceutical manufacturers will also benefit from the deal as distribution of the 36 drugs is expected to rise following the price cuts. Meanwhile, for foreign pharmaceutical manufacturers, joining the medical insurance fund is a wise that avoids eventual competition from Chinese rivals.

Prices of the drugs may be adjusted further when contracts between the government and manufacturers expire at the end of 2019, but they will also be subject to change if new medicines witness changes in exclusivity.

Opting for a negotiated mechanism to revise medical insurance directory is just the beginning. Without doubt, price negotiations will play a bigger role in medical insurance, said an expert.

The cuts underline how the world’s biggest drug companies co-operate with the Chinese government’s drive to reduce prices of drugs, the Financial Times reported. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Hongyu, Bianji)

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