PHA-Exch> South Korean Pharmaceutical Reforms Failed To Reduce Costs

[Claudio Schuftan]

From: Ruggiero, Mrs. Ana Lucia (WDC) ruglucia at paho.org


 *South Korean Pharmaceutical Reforms Failed To Reduce Costs*

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*The reform's implementation, although well-intentioned and successful in
some respects, was imperfect from the start.*

Hak-Ju Kim and Jennifer Prah Ruger

*Health Affairs, 28 May 2008***

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Available at:
http://content.healthaffairs.org/cgi/content/abstract/hlthaff.27.4.w260

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"….The pharmaceutical reforms instituted by South Korea in 2000 have cut
down on the abuse of antibiotics and other prescription drugs, according to
a new study published today on the Health Affairs Web site. However, the
reforms have also had unintended consequences, such as the increased use of
high-price brand-name drugs and an acceleration in the rate of increase of
South Korea's national health spending, say the study's authors, *Hak-Ju Kim
of Dongguk University in Seoul and Jennifer Prah Ruger of the Yale
University School of Medicine. *They observe that overall South Korean
health care spending has actually increased more rapidly after the reforms
than before they were implemented…."



"…Despite its lofty aims, the pharmaceutical reform has resulted in
unintended distortions in the supply of medical services and expenditures,
increasing the use of uninsured services and high-price drugs, and expanding
market share for multinational companies. It also is resulting in the full
separation of medical institutions and pharmacies for outpatient
care.48<http://content.healthaffairs.org/cgi/content/full/hlthaff.27.4.w260/DC1#48%2348>Further
reform bills are needed to reduce these unintended adverse effects.
Introducing recommended drug formularies and restricting insurance benefits
for those not on the list may help restrict unnecessary growth in medical
spending. Thoughtful consideration of evidence-based incentives and
disincentives for health care providers will be crucial in future reforms…."



Health Affairs is pleased to make this article freely accessible to listserv
recipients for two weeks. *-----From: Ford, Kathleen Project Hope

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