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Pharmaceutical Pricing, Reimbursement Environment in China
Decision Resources, Inc, Nov 2006, Pages: 26
Introduction
Given its sizeable population and rapid urbanization, China represents a potentially lucrative market for drug manufacturers. But the lure of marketing drugs in China is tempered by China’s pharmaceutical pricing and reimbursement system. Government price controls, extensive retail mark-ups, and wide regional variations in insurance all pose specific challenges for companies looking to enter the Chinese market.
Get the Answers You Need to Shape Your Strategy
The Chinese government still sets or guides retail prices for all drugs eligible for reimbursement under China’s health insurance plans. What challenges do government-imposed retail price cuts present for manufacturers?
What difficulties do China’s pricing practices pose for Chinese patients?
Inclusion on the National Essential Drug List (NEDL) is a key to success in China. What types of drugs are included on the NEDL?
How does the government determine pricing for the various product groups that compose the list?
What additional constraints affect the retail price of a given drug?
When do manufacturers have input on NEDL selection?
As the composition of China’s rural and urban populations changes, so too does the level and variety of health care available to residents of these regions. What sort of drug reimbursement is provided by China’s various insurance schemes?
How will emerging insurance plans— including private insurance—affect patients’ ability to obtain medical care?
Scope
Historical overview: a review of China’s health care system, including analysis of urban versus rural disparities in access.
Pricing and reimbursement: overview of China’s current pricing practices and government regulations (including drug categories within the NEDL), with examples and comparisons for select classes and drugs.
Insurance plans: the changing landscape of China’s government-sponsored health insurance schemes, regional variations, and their effects on reimbursement.
Market outlook: our forecasts for changes in pharmaceutical pricing practices and future insurance coverage and drug reimbursement in China.
Interview: transcript of our exclusive primary research with a thought-leading professor and Chinese rural health care reformer.
Mentioned inside this Report:
Chinese Government Agencies
- Ministry of Health
- Ministry of Labor and Social Security
- National Development and Reform Commission
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