The escalating issue of drug shortages has recently come to the forefront, with the National Health Insurance Administration unveiling the latest drug prices. This development has sparked concerns within the pharmaceutical industry, with predictions of an imminent shortage crisis within the next six months. On the 7th, the Health and Environment Committee of the Legislative Yuan passed a temporary proposal introduced by Kuomintang legislator Sean Liao. Under this proposal, drugs meeting three criteria will benefit from price protection: they must be clinically necessary, manufactured in Taiwan, and possess fewer than three licenses for scarce drugs, effectively shielding them from price adjustments.
As society ages and technological advancements progress, healthcare expenditure and medication costs continue to rise steadily. Despite facing challenges such as severe inflation, shortages of raw materials, and labor, drug costs subject to NHI price controls are being reduced due to the limited financial budget of the NHI Administration. Consequently, some pharmaceutical companies find themselves operating at a loss or selling below cost, leading to production halts and market withdrawals.
Sean Liao stressed the significant impact on public health and rights should drug supplies become unstable. The prospect of "medicine shortages" poses a direct threat to life safety and should not be underestimated by policymakers.
The issue of drug shortages has become a persistent concern in public policy, and reforming drug prices is a crucial step in addressing this challenge. It is imperative to maintain the resilience of the drug supply chain to ensure uninterrupted drug supply. Addressing specific reported shortages through special import arrangements is insufficient; comprehensive solutions are needed.
Recognizing the diverse responses of patients to medications, Sean Liao advocates for an adequate range of medication options to equip physicians with effective treatment choices. Furthermore, to mitigate global drug supply instability and potential disruptions due to cross-strait relations, it is vital to enhance local production capacities for clinically necessary drugs, thereby ensuring universal access to medications for all patients.
In response to the drug shortage issue, the Taiwan Generic Pharmaceutical Association has proposed that the government offer appropriate price protection for drugs manufactured in Taiwan or utilizing domestically sourced raw materials, as well as drugs with fewer than three licenses for scarce drugs. This measure aims to enable physicians to make optimal prescription choices and safeguard patients' rights to medication.
During the Health and Environment Committee meeting on the 7th, Sean Liao's temporary proposal to safeguard drug prices was endorsed by the Legislative Yuan. Besides the aforementioned categories of drugs, medications certified by medical associations as clinically necessary or listed on the necessary drug list under Article 27-2 of the Pharmaceutical Affairs Act will be exempt from price adjustments, including annual adjustments.
Minister of Health and Welfare Hsueh, Jui-yuan, in response to inquiries from Democratic Progressive Party legislator Chung, Chia-Pin, acknowledged that price protection plays a crucial role in preventing drug shortages. The Ministry of Health and Welfare is actively pursuing this direction, with plans to present an analysis report on the impact of drug supply within three months.
