‘Aging’ Republic of Korea…spent 26 trillion won on pharmaceuticals last year

It was found that Korean citizens’ spending on drugs used to treat cancer and rare diseases is steadily increasing. While we have already entered a super-aging society where the population over 65 years of age exceeds 20% of the total, the drug costs spent by patients in their 60s last year amounted to 6.6 trillion won. Drug costs spent by patients in their 70s and 80s also exceeded 8 trillion won.

On the 16th, the National Health Insurance Corporation (Chairman Jeong Ki-seok) announced that as a result of an analysis of the expenditure status of covered medicines in 2023, the total medicine costs were KRW 26.1966 trillion, an 8.5% increase compared to the previous year (KRW 24.1542 trillion). This is an increase rate that is approximately twice as high as last year’s total medical expenses (KRW 110.8029 trillion), which increased by 4.7% compared to the previous year. The share of drug costs among medical expenses also increased by 0.8 percentage points to 23.6% compared to the previous year.

Recently, according to the National Health Insurance Comprehensive Plan, the government has expanded health insurance coverage for cancer and rare disease treatments that have a high pharmaceutical cost burden, and has been pushing for expansion of drug coverage for essential drugs required for treatment. In 2022, 22 drugs, including ‘Kymriah’, a treatment for acute lymphocytic leukemia, were covered, and the scope of use was expanded to 7 drugs, including immunotherapy drugs. In addition, the following year, 24 drugs, including ‘Evris D’, a treatment for spinal muscular atrophy, were provided, and the scope of use of 8 drugs, including a treatment for severe atopic dermatitis, was expanded.

As a result of continuously expanding coverage of essential medicines, the out-of-pocket burden for patients with cancer and rare incurable diseases has decreased, and the cost of covered drugs used to treat these patients last year was KRW 3.8402 trillion and KRW 2.5492 trillion, respectively, up 10.8% and 9.7% from the previous year. The increase exceeded the overall drug cost growth rate (8.5%).

Looking at it in detail, by age group, drug costs for patients in their 60s accounted for the highest proportion (25.2%) at KRW 6.6 trillion, followed by those in their 70s (KRW 5.2 trillion), those in their 50s (KRW 4.4 trillion), and those in their 80s (KRW 3 trillion). 100 billion won) appeared in that order. The proportion of total drug expenses for those in their 60s or older was 58.1%. By type of medical institution, pharmacy claims were the highest at KRW 18 trillion (68.9%), followed by tertiary general hospitals (KRW 3.8 trillion), general hospitals (KRW 2.2 trillion), and clinics (KRW 1.1 trillion).

Among pharmaceutical expenses, treatment for hyperlipidemia ranked first due to the aging population and westernized eating habits, and treatment for chronic diseases (hypertension, diabetes, and hyperlipidemia), including this, ranked first. In particular, by efficacy group, arteriosclerotic drugs (hyperlipidemia treatment drugs) had the largest expenditure at KRW 2.849 trillion, followed by anti-malignant tumor drugs (KRW 2.7336 trillion), blood pressure lowering drugs (KRW 2 trillion), and peptic ulcer drugs (KRW 1.3904 trillion). ), followed by diabetes medication (KRW 1.3667 trillion).

An official from the Corporation said, “Drug costs are continuously increasing due to the listing and expansion of standards for new drugs such as expensive anticancer drugs and gene treatments, and the increase in chronic diseases due to the aging population,” and added, “We are continuously improving coverage to ensure timely use of the drugs needed for treatment.” “We will expand the analysis of misused or unnecessarily prescribed medicines and prepare management measures,” he said.

Meanwhile, according to the latest health statistics from the Organization for Economic Co-operation and Development (OECD), as of 2022, the proportion of pharmaceutical expenditures in Korea’s current medical expenses was 18.0%, 3.8 percentage points higher than the average of 14.2%, and ranked 7th among OECD countries, following Mexico (21.0%). Climbed on top.