Experts Advocate for Increased Incentives and Cost Reduction for Biosimilar Prescriptions at Asian Biotechnology Exhibition

The 2024 Asian Biotechnology Exhibition (BIO Asia-Taiwan 2024) concluded on July 30th. During the exhibition, the Taiwan Nongovernmental Hospitals and Clinics Association and the Biosimilar Drug Function Committee of the Taiwan Bio Industry Organisation (TBIO) jointly organized the “Biosimilar Drug Hospital Summit.” Promoting innovative drug development in Asia and Taiwan, the summit also highlighted a pilot program to encourage biosimilar drugs. Deputy Director Pang Yiming of the Central Health Insurance Agency and Huang Yuwen, leader of the Medical Review and Medicinal Materials Section of the National Health Insurance Administration, shared details of the plan. Furthermore, domestic and international experts exchanged their experiences in implementing relevant policies. Notably, the summit invited 19 domestic medical institutions and pharmacy management leaders to discuss the follow-up policy objectives and future prospects of the pilot plan.

Pilot Program Aims to Boost Biosimilar Drug Prescriptions to Over 30% Within Three Years

Biosimilar drugs are products with the same ingredients as the original drugs, and clinical trials have proven their efficacy and safety are equivalent. Widely used in other countries after the original patents expire, biosimilar drugs help save drug expenses and enable rational reallocation of medical fees. To enhance their clinical use, the Department of Health Insurance has launched an incentive pilot program for biosimilar drugs on July 1, 2024. This program includes a special allocation of 50 million NTD (approximately 1.5 million USD) from the “Medical Benefit Improvement Program.” The goal is to increase the proportion of participating drug orders to more than 30% over three years through issuance incentives and drug cost balance feedback, with an annual rolling review of the plan.

Additionally, the conference invited senior consultants from the British National Institute for Health and Care Excellence (NICE) and pharmacy directors from relevant domestic medical centers to share the policy results of biosimilar drugs. The UK established a relevant practice framework in 2017, aiming to use the most cost-effective options for 90% of new patients. This policy promotes sharing 50% of the price difference benefits with medical institutions and announces the effectiveness ranking of policy implementation. As a result, the UK saved over 250 million pounds (approximately NT$10 billion or 320 million USD) annually and established a new cancer drug fund. Furthermore, relevant medical centers in Taiwan have implemented incentive policies, treating more than a thousand additional patients at the same drug cost. Among all patients using biosimilar drugs, no adverse reactions different from those of the original drugs were observed.

Policy Recommendations: Expand Biosimilar Drug Management and Align Health Insurance Payment Standards with Medical Guidelines

Vice President Hong Ziren of Shin Kong Hospital led the meeting to discuss policy suggestions. The rewards for biosimilar drugs will gradually expand based on this year’s negotiation results. Efforts will also increase the reward amounts and expand resource allocation for pharmacists and personal managers. At the administrative and legal levels, recent amendments to the National Health Insurance Law will help explore paying for biosimilar drugs while allowing the public to choose higher-priced original drugs by paying the out-of-pocket difference. Additionally, the meeting emphasized the need to align health insurance payment standards for biosimilar drugs with treatment guidelines.

These policy improvements aim to provide more comprehensive drug treatment protection for patients. According to the National Health Insurance Administration, ten large-molecule drug patents will expire in the next few years. Therefore, establishing supporting policies has become urgent. The government is expected to reinvest the saved medical resources into new medical technologies while reducing costs on drugs with expired patents.

Author

Bernice Lottering