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Easy cuts, easy rebound: Drug expenditures with massive price cuts in Korea


  • Kwon, Hye-Young
  • Bae, Seungjin
  • Choi, Sang-eun
  • Park, Sylvia
  • Lee, Eui-Kyung
  • Park, Sungmin
  • Kim, Jinhyun


Since 2012, the Korean government has introduced 46.5% price cut for off-patent medicines in order to reign everescalating drug expenditure. This study sought to appraise the impact of the price cut measure (in the context of Korean National Health Insurance system).

Suggested Citation

  • Kwon, Hye-Young & Bae, Seungjin & Choi, Sang-eun & Park, Sylvia & Lee, Eui-Kyung & Park, Sungmin & Kim, Jinhyun, 2019. "Easy cuts, easy rebound: Drug expenditures with massive price cuts in Korea," Health Policy, Elsevier, vol. 123(4), pages 388-392.
  • Handle: RePEc:eee:hepoli:v:123:y:2019:i:4:p:388-392
    DOI: 10.1016/j.healthpol.2018.11.002

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    References listed on IDEAS

    1. repec:spr:aphecp:v:15:y:2017:i:4:d:10.1007_s40258-017-0307-0 is not listed on IDEAS
    2. Delnoij, Diana & Brenner, Gerhard, 2000. "Importing budget systems from other countries: what can we learn from the German drug budget and the British GP fundholding?," Health Policy, Elsevier, vol. 52(3), pages 157-169, July.
    3. Iván Moreno-Torres & Jaume Puig-Junoy & Josep Raya, 2011. "The impact of repeated cost containment policies on pharmaceutical expenditure: experience in Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(6), pages 563-573, December.
    4. Yue-Chune Lee & Ming-Chin Yang & Yu-Tung Huang & Chien-Hsiang Liu & Sun-Bing Chen, 2006. "Impacts of Cost Containment Strategies on Pharmaceutical Expenditures of the National Health Insurance in Taiwan, 1996–2003," PharmacoEconomics, Springer, vol. 24(9), pages 891-902, September.
    5. Kwon, Hye-Young & Hong, Ji-Min & Godman, Brian & Yang, Bong-Min, 2013. "Price cuts and drug spending in South Korea: The case of antihyperlipidemic agents," Health Policy, Elsevier, vol. 112(3), pages 217-226.
    6. Håkonsen, Helle & Horn, Anne Marie & Toverud, Else-Lydia, 2009. "Price control as a strategy for pharmaceutical cost containment--What has been achieved in Norway in the period 1994-2004?," Health Policy, Elsevier, vol. 90(2-3), pages 277-285, May.
    7. Ferrario, Alessandra & Kanavos, Panos, 2015. "Dealing with uncertainty and high prices of new medicines: A comparative analysis of the use of managed entry agreements in Belgium, England, the Netherlands and Sweden," Social Science & Medicine, Elsevier, vol. 124(C), pages 39-47.
    8. Carone, Giuseppe & Schwierz, Christoph & Xavier, Ana, 2012. "Cost-containment policies in public pharmaceutical spending in the EU," MPRA Paper 42008, University Library of Munich, Germany.
    9. repec:spr:pharme:v:35:y:2017:i:12:d:10.1007_s40273-017-0559-4 is not listed on IDEAS
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