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Expenditure On Retail Pharmaceuticals Per Capita, 2019 (USD$ PPP)
Prescribed Medicines: $532
Over-The-Counter Medicines: $95
Total: $627
Source: OECD (2021), Health at a Glance 2021: OECD Indicators, OECD Publishing, Paris, https://doi.org/10.1787/ae3016b9-en.
Expenditure On Retail Pharmaceuticals By Type Of Financing, 2019 (%)
Government/Compulsory Plans: 60%
Voluntary Health Insurance Plans: 1%
Out-Of-Pocket: 39%
Source: OECD (2021), Health at a Glance 2021: OECD Indicators, OECD Publishing, Paris, https://doi.org/10.1787/ae3016b9-en.
“Pharmaceutical production has long been dependent on domestic manufacturers. According to the Ministry of Food and Drug Safety, 647 manufacturers (all private entities) were producing pharmaceuticals in 2012 (MFDS, 2013). It is estimated that about 80% of pharmaceutical supply is domestically sourced. As many as 21150 pharmacies and 2351 wholesalers are engaged in the distribution of medicines.
“Pharmaceutical care is divided between prescription and OTC drugs. In principle, all therapeutic prescription drugs except injections are to be prescribed by a doctor and dispensed by a pharmacist. OTC drugs are mainly dispensed and provided by a pharmacist at a pharmacy, although doctors can prescribe non-prescription drugs listed in the NHI formulary. Prescription drugs represent more than 83% of production (MFDS, 2013).
“In relation to the NHI benefits package, not all prescription drugs are included, nor are all non-prescription drugs excluded, from the formulary. The NHI formulary is determined by the Ministry of Health and Welfare. The cost-sharing formula applied to the pharmaceutical benefit depends on the level of provider in the referral system. For example, the co-payment is 30% of the total cost of the prescription by a primary care doctor and 50% by a specialized general hospital.”
Source: World Health Organization. Regional Office for the Western Pacific. (2015). Republic of Korea health system review. Manila: WHO Regional Office for the Western Pacific.
“The pricing of pharmaceuticals in the NHI formulary has been continuously debated with regard to the optimal level. Given that 21.2% of total health expenditure is used on pharmaceuticals (as of 2011), it affects NHI’s financial sustainability (OECD, 2013c). The average annual growth in per capita pharmaceutical expenditure from 2000 to 2009 was 9.8%. Patients are also concerned because they have to share the cost of medicines according to the generic NHI cost-sharing formula. As reform measures, the Government has recently introduced new rules on the pricing of pharmaceuticals, such as NHI formulary (positive listing) based on cost-effectiveness considerations, negotiation of the price of ‘original’ medicines between the NHI insurer and drug companies, and further discounting of the price of generic medicines including patent-expired original medicines.”
Source: World Health Organization. Regional Office for the Western Pacific. (2015). Republic of Korea health system review. Manila: WHO Regional Office for the Western Pacific.
“The NHIS is monitoring the prescription and utilization of pharmaceuticals, focusing on quality and cost. The prescribing behaviours of providers are regularly assessed by HIRA, including antibiotics for acute respiratory infection, injections, number of drugs for a prescription, high-cost pharmaceuticals, and the cost of outpatient pharmaceutical care. From a safety perspective, nationwide drug utilization review is in place. Comparison with the OECD average shows the consumption of pharmaceuticals, in terms of volume and quantity of drugs consumed, varies by category. Consumption of antidepressants and anticholesterols is lower than the OECD average, but use of antibiotics and antidiabetics is much higher than the average (OECD, 2011).”
Source: World Health Organization. Regional Office for the Western Pacific. (2015). Republic of Korea health system review. Manila: WHO Regional Office for the Western Pacific.
Health Systems Facts is a project of the Real Reporting Foundation. We provide reliable statistics and other data from authoritative sources regarding health systems in the US and sixteen other nations.
Page last updated August 17, 2022 by Doug McVay, Editor.
