A legislator yesterday said that the Ministry of Health and Welfare has cut pharmaceutical drug prices too much and that a supply shortage is likely to ensue.
At a meeting of the legislature’s Social Welfare and Environmental Hygiene Committee in Taipei, Chinese Nationalist Party (KMT) Legislator and president of the Taiwan Medical Association Su Ching-chuan (蘇清泉) said the ministry’s National Health Insurance Administration (NHIA) has cut drug prices to the point that some pharmaceutical companies cannot sustain their business.
“By continuously cutting drug prices, the first generation antibiotics that were about NT$70, are now about NT$17 to NT$18, which is cheaper than a bottle of water,” Su said.
“How are pharmaceutical companies to survive like this? If they are not willing to produce a drug, then we will face a supply shortage,” Su said.
The price of oral iron supplements has also been cut from about NT$5 to NT$1, he said, adding that he has heard some foreign pharmaceutical companies are not willing to introduce new drugs to Taiwan before going to other countries, for fear that prices would be too low.
When high-quality drugs are forced to leave the nation’s market because of low revenues, patients become the victims — having to use generic drugs instead of brand-name drugs, or even facing supply shortages, he said.
Minister of Health and Welfare Chiang Been-huang (蔣丙煌) said that drugs account for about 25 percent of the NHIA annual budget of about NT$600 billion (US$18 million), and prices of new drugs might be higher, but they are still required, therefore, the budget for some older drugs is cut to purchase new drugs.
However, the NHIA monitors the supply and demand of drugs, to ensure a supply shortage does not happen, Chiang said, adding that, to his knowledge, several foreign pharmaceutical companies are still actively trying to enter Taiwan’s market.
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