The South Korean government will raise insurance reimbursement prices for treatment materials such as artificial blood vessels by an average of 2%, citing rapidly shifting international conditions and a high won-dollar exchange rate. The move aims to prevent supply disruptions of essential treatment materials caused by cost pressures.
The Ministry of Health and Welfare (MOHW) announced the decision Tuesday at the fourth health and medical organization meeting on the Middle East war response, chaired by Minister Jeong Eun-kyeong. Treatment material prices are set separately from medical procedure fees, with the government establishing ceiling prices. However, heavy reliance on imports means that a sharp rise in the exchange rate can erode profitability and potentially disrupt medical services through supply disruptions, prompting the government to adjust ceiling prices twice a year in line with the U.S. dollar exchange rate.
The government will raise the benchmark tier (grade 0) used as the basis for ceiling price adjustments by 200 won. The benchmark, which had been fixed at 1,100 won to less than 1,200 won since 2018, will now be adjusted to 1,300 won to less than 1,400 won. The ceiling price adjustment rate at grade 0 will also be raised by an additional 2%.
The MOHW expects the measures to raise the average price of approximately 27,000 separately priced treatment materials, providing 6.7 billion won ($4.9 million) per month in support to treatment material manufacturers and importers. The measures were approved by the Active Administration Committee on the 20th of this month and will take effect on the 27th.
"By improving the exchange rate benchmark tier for treatment materials, we hope to ease the burden on companies struggling with rising cost pressures," Minister Jeong said. "The government will actively provide support to ensure that medical services are not disrupted by shortages of treatment materials."
Some 3.5 million additional syringes will be produced to address shortages reported on the ground since the outbreak of the Middle East war. Under a memorandum of understanding with the Ministry of Food and Drug Safety (MFDS), Korea Vaccine will produce an additional 500,000 syringes per week for seven weeks through special extended work hours.
The additionally produced syringes will be supplied on a priority basis to hemodialysis clinics, pediatric clinics and delivery medical institutions through the "Syringe Hotline," an online marketplace launched last week by the Korean Medical Association. The MFDS is also pursuing a plan to supply some of the additionally produced syringes to online malls for medical institutions.
In line with the ban on hoarding and cornering the market issued last week, the MFDS has deployed special enforcement teams targeting syringes and injection needles this week. The joint enforcement teams consist of 35 units with more than 70 personnel, and will take stern action against any violations identified.
