The National Assembly raised the opinion that a reference pricing system should be introduced to induce price competition between generic drugs and encourage the use of cheaper generics.

NA member Youngseok Seo of the Democratic Party of Korea inquired on introducing the reference pricing system to normalize the generic market and reduce NHI finances to the National Health Insurance Service through a written QA at the NA’s Health and Welfare Committee’s Comprehensive Audit

The reference pricing system refers to a system in which a certain reimbursement level is set for all drugs with the same efficacy. Through the system, only a certain amount of a drug price is covered by NHI finances