Healthcare Reform | Hospital Authority: Self-funded drugs become specialized drugs, significantly reducing medication costs

Under public healthcare fee reform, the Hospital Authority has included 11 new drugs in the formulary this year, of which 8 drugs receive substantial government subsidies, significantly reducing patients’ medication costs.

A drug costing 500k yuan annually, now a dedicated drug for only 240 yuan

The Hospital Authority’s Chief Pharmacist, Chui Chun-ming, stated on a radio program that one of the self-funded drugs, which originally cost patients 500k yuan per year, has recently been converted to a dedicated drug, costing only 240 yuan per year. A total of 400 patients benefit, with the government spending an additional 50 million yuan.

Chui Chun-ming pointed out that the drugs in the formulary are divided into generic, dedicated, self-funded drugs, and self-funded drugs not covered by the safety net. Experts review clinical data and cost-effectiveness of different drugs to consider whether to convert more drugs into dedicated drugs. He emphasized that the overall subsidy for patient medication expenses by the authorities reaches 95%, hoping that those who can pay more or co-pay will do so, making it easier to introduce new drugs.

As of March, 240k exemption applications received, 220k approved

The Hospital Authority’s Chief Administrative Manager (Medical Services), Pan Qi-hong, said on the same program that by March, 240k medical fee exemption applications had been received, with 220k approved. This is a 16-fold increase compared to previous years’ application numbers. Among these cases, 84% of patients who provided income and asset proof documents could be approved on the spot.

Regarding how to verify deposits outside of patients’ bank accounts, Pan Qi-hong stated that the Hospital Authority accepts screenshot evidence. For eligible patients, financial verification is relatively simple; even if they hold stocks, bank monthly statements will contain relevant information, which is believed to be not too difficult to handle.