Deals & Cases

General Civil Disputes 2018-07-16
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Provisional measures to suspend the effect of the notification of drug price decrease

The Minister of Health and Welfare issued the notification to decrease the upper limit amount of rebate drugs to a number of pharmaceutical companies on the latest March 26.

DR & AJU, on behalf of a number of pharmaceutical companies, brought out the provisional measure to suspend the effect of the notification from the competent court by arguing as follows: (i) the disposition-based provision is ineffective as the applicable provision in the ‘Regulation on the Standard of National Health Insurance Care Benefits’, which becomes the basis to calculate the determined amount, has already been deleted; (ii) as the method to calculate the determined amount pursuant to the above adjustment criteria regards health-care facilities, which are not investigated for violations of the Pharmaceutical Affairs Act, as the ones getting a rebate in the same way as health-care facilities subject to investigation, the method is unconstitutional or illegal; and (iii) the calculation of the determined amount according to findings on investigation of 12 health-care facilities when the Health and Welfare Minister generally decreases the upper limit amount of drugs, which are delivered to approximately 2,300 health-care facilities, lacks ‘representability as samples’ of health-care facilities, and thereby that the notification of drug price decrease is illegal. Moreover, DR & AJU argued that due to the contemplated notification of drug price decrease, sales decrease and management crisis have happened to the applicant, and that there is no compensation procedure for the above losses, creating an irreparable risk for loss.

In the near future, at the court, DR & AJU is going to argue that the method to calculate according to the interlocking rebate-drug price decrease system is unconstitutional. Therefore, attentions are paid to the court’s judgment over the calculating method and the direction for any future revision of the Enforcement Decree of the National Health Insurance Act on the interlocking rebate-drug price decrease system.