Health Policy Manag.  2020 Jun;30(2):164-177. 10.4332/KJHPA.2020.30.2.164.

Implications of Price Setting Strategies for New Health Technologies from Five Countries

• Chung Sh
• Kwon O
• Choi Y
• Moon K
• Chae J
• Lee R

• KMID: 2503573
• DOI: http://doi.org/10.4332/KJHPA.2020.30.2.164

Abstract

This study aims to compare the experience of selected countries in operating separate payment system for new healthcare technology and to find implications for price setting in Korea. We analyzed the related reports, papers, laws, regulations, and related agencies’ online materials from five selected countries including the United States, Japan, Taiwan, Germany, and France. Each country has its own additional payment system for new technologies: transitional pass-through payment and new technology ambulatory payment classification for outpatient care and new technology add-on payment for inpatient care (USA), an extra payment for materials with new functions or new treatment (C1, C2; Japan), an additional payment system for new special treatment materials (Taiwan), a short-term extra funding for new diagnosis and treatment (NUB; Germany), and list of additional payments for new medical devices (France). The technology should be proven safe and effective in order to get approval for an additional payment. The price is determined by considering the actual cost of providing the technology and the cost of existing similar technologies listed in the benefits package. The revision cycle of the additional payment is 1 to 4 years. The cost or usage is monitored during that period and then integrated into the existing fee schedule or removed from the list. We conclude that it is important to set the explicit criteria to select services eligible for additional payment, to collect and analyze data to assess eligibility and to set the payment, to monitor the usage or cost, and to make follow-up measures in price setting for new health technologies in Korea.

Keyword

New healthcare technology; Reimbursement; Additional payment; Price setting; National Health Insurance