Foreign Price Reference System (Measures to Ensure Stable Supply)

Committee:
Medical Equipment
status:
No progress
Published:
Under the previous revision (R4), if the highest price in the case of three or more foreign countries exceeds the additive average of the other prices by 1.6 times, it was revised to deem the highest price to be equivalent to 1.6 times the additive average of the other prices.

Recommendations

  • The EBC recommends the abolition of the Foreign Price Recalculation (FPR) system. In the event that abolition is not possible, the EBC recommends not implementing price reductions when the foreign average price (calculated without applying the outlier exclusion rule and using the arithmetic mean) is equal to or less than 1.0 times the domestic price, and easing the current 50% cap on price reductions.
  • The EBC recommends that, from the perspective of ensuring a stable supply, functional classifications where the hospital delivery price exceeds the reimbursement price (i.e., inverse Z2 conditions) be excluded from the scope of the Foreign Price Recalculation (FPR) system.
  • The EBC also recommends that products priced at 1.25 times the foreign price comparison level, as well as newly listed and repriced products, be excluded from review under the FPR system.