Aug 22, 2019 (China Knowledge) - The National Healthcare Security Administration released the updated medical reimbursement list this past Tuesday, which added 149 drugs to the existing list. The drugs included in the medical reimbursement list are eligible for reimbursement under government-backed insurance plans. Among these 149 new drugs, 47 are pharmaceutical drugs while 101 are traditional Chinese medicines.
At the same time, the updated medical reimbursement list also removed 150 existing drugs. These drugs were phased out and replaced by more clinically effective drugs.
The current overhaul of the medical reimbursement list comes after the last major readjustment in 2017. In the present, between 60% to 90% of basic medical costs are reimbursed by basic medical insurance systems in China. The updated list is believed to be able to better meet the medical requirements of China’s population, while also improving the allocation of the limited medical insurance funds.
The updated medical reimbursement list will come into effect on 01 January 2020, with several other patented medicines currently being considered to be included in the list. If successful, drug companies can reap in huge profits. Some companies, who have had their patented drugs included in the updated medical reimbursement list, have already seen an increase in their share prices. For instance, Betta Pharmaceuticals Co. Ltd.’s (300558) shares rose by 1.84% in the Shenzhen stock exchange on Wednesday and Chongqing Pharscin Pharmaceutical Co. Ltd.’s (002907) shares also increased by 1.11% on closing.
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