Proposals to allow people to pay extra for imported brand-name drugs need careful consideration, as they might create a negative impression about domestically produced generic drugs, Minister of Health and Welfare Shih Chung-liang (石崇良) said yesterday.
The Food and Drug Administration (FDA) last week confirmed that as of last month, pharmaceutical companies had reported plans to discontinue supply of 47 types of drugs in Taiwan.
Shih on Sunday outlined the ministry’s plan to prevent panic buying or hoarding of drugs.
Photo: Chen Yi-kuan, Taipei Times
Speaking on the sidelines of a meeting of the legislature’s Social Welfare and Environmental Hygiene Committee yesterday morning, he said that the 47 types of drugs — mainly used to treat hypertension and high cholesterol levels — have expiring patents and can be substituted with generic drugs, so shortage should not be a problem.
Some doctors and pharmacists have proposed amending laws to allow balance billing of certain brand-name drugs — that is, patients can decide if they want to pay the difference between the price of a brand-name drug and the alternative generic drug covered by the National Health Insurance.
Asked about the suggestion, Shih said careful assessment and consideration are needed to decide whether to introduce such a system.
Some countries, including Taiwan, follow the policy of paying the same price for drugs of the same “ingredients, dosage and dosage form,” while others allow drug companies to set different prices for the same drug, he said.
However, allowing people to pay extra for brand-name drugs would not only affect the cost of treatment for patients, but might also affect the development of domestically produced generic drugs, Shih said.
The government is promoting the generic drug industry, so the ministry needs to consider whether brand-name drugs with expired patents and substitute generic drugs can be priced differently, he said, adding that it might create a negative impression about locally made drugs.
Allowing the public to pay extra for imported brand-name drugs might also have a negative effect on Taiwan’s drug supply resilience, especially its goal of reducing dependence on imported drugs, he added.
At the meeting, legislators asked why the FDA received a report about suspected industrial-grade hydrogen peroxide tainted pork intestines by Pai Wei Foods Co in June, but only took action to remove the tainted products from the market this month.
Shih acknowledged flaws in the FDA’s handling procedures.
Saying he eats noodles with pork intestine nearly every week, Shih said he deeply feels the public concern over this issue.
The ministry will reflect on its behavior and adjust its procedures to ensure food safety, he said.
However, he added that there is a serious shortage of food safety inspectors.
There are more than 710,000 legally registered food businesses, and about 160,000 underwent inspections last year, he said, adding that it might take up to four years to inspect all businesses.
While businesses that have failed inspections would be subject to more frequent inspections, Pai Wei Foods was not listed among these high-risk companies, Shih said.
A NT$54 million (US$1.76 million) fine has been imposed on the company, the highest among similar cases, he said.
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