There Is No “safeguard” For Medical Insurance. How Do Pharmaceutical Companies Protect Themselves?

Aug 25, 2019

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A few days ago, the news came out in the industry that the National Medical Insurance Bureau held training in medical service management in Wuhan. It is said that the training has confirmed the adjustment method for the province's supplementary medical insurance drug list: the local supplementary catalogue will be digested in three years according to the “442 principle”, and will be transferred according to 40%, 40% and 20% of the province's supplementary amount.


It is also known that the auxiliary drugs that are mainly monitored will be removed from the catalogue first. It is foreseeable that this initiative of the National Health Insurance Bureau will have a major impact on the pharmaceutical industry. During the three-year transition period, companies involved in the transfer of drugs should re-adjust their mentality and positioning, maintain the existing sales share as much as possible, and prepare for new channels and new markets.


According to the relevant regulations, the adjustment of the previous medical insurance catalogue will give 15% adjustment space for each province. After some medicines fail to enter the national version of the catalogue, it is possible to enter the province's supplementary catalogue.


Nowadays, the state has canceled the adjustment authority of the provincial medical insurance catalogue, which helps to establish the integrity, authority and seriousness of the national medical insurance catalogue, and to ensure that the medical insurance for the people is basically unaffected.


Wang Liang, chairman of Yaogu Pharmaceutical Group, pointed out that within three years, the provincial-level supplementary medical insurance catalogue was gradually phased out. On the one hand, the payment pressure from the national medical insurance fund was relatively large, and at the same time, due to the large number of provincial-level supplements, power generation was created. Renting has led to the production of many "medicines" and high-priced drugs.


This not only increases the pressure on medical insurance payment, but also increases the cost of treating patients for medical treatment. On the other hand, the current number of medical insurance catalogues, product composition and update speeds have basically met the clinical drug demand.


According to preliminary statistics, there should be more than 200 existing provincial supplements. Therefore, in the next period, more than 200 drugs will be transferred to the medical insurance catalogue one by one.


In addition to the key monitoring of auxiliary drugs, the drugs that have been transferred should include drugs that have been eliminated, drugs with ineffective effects, drugs with clinical side effects and alternatives, and better alternatives from the perspective of pharmacoeconomics. Drugs, as well as drugs for suspected abuse in the new round of drug monitoring.


In parallel, drugs that are truly clinically valuable and that save first aid, especially innovative drugs, will be more quickly included in health care and enjoy positive benefits.


With the cancellation of the local medical insurance catalogue adjustment authority, those varieties that used to be local supplements and failed to squeeze into the national medical insurance catalogue will lose the “halo” of medical insurance, which is a great challenge to maintain their market share. How should these pharmaceutical companies do a "transitional strategy" to maintain market share?


According to the "442" policy, it is best to do the "2" work in advance. Enterprises with full confidence in the efficacy of products, pharmacoeconomic indicators, etc., can strive to rush into the next edition of the national medical insurance catalogue at all costs.


In the transformation direction, in addition to the large health field, companies can combine the original superior departments to develop some effective generic drugs.


For the new pattern that the pharmaceutical market will present after three years, the drugs with real therapeutic properties will play a dominant role. The breakthrough in the treatment of chronic diseases and difficult diseases will have great market demand, especially for immunodeficiency diseases and malignant tumors. The innovative drugs will be the mainstream that will lead the future pharmaceutical market.


The provincial-level supplement products will all withdraw from the clinical market, and the number of clinical drugs will be greatly reduced. The clinical utilization rate of products with clear national medical insurance catalogue will be greatly improved.


With the further implementation of the volume procurement and clinical payment reform, the price of the product will further decline, the pressure of medical insurance payment will be reduced, and the cost of patient medication will also be reduced. If such a situation is fully realized, it will definitely have an epoch-making impact on the sales and pattern of drugs in the entire pharmaceutical market.

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