EXCLUSIVE: Japan Govt May Revise Drug Prices Twice in ’19

September 9, 2018

Tokyo- Japan's health ministry is considering revising government-administered drug prices twice in 2019, partly to reflect a planned consumption tax hike, Jiji Press learned Saturday.

In April that year, the government will carry out a special revision to lower government-administered prices to factor in market prices, informed sources said.

This will be followed by a special price increase stemming from the tax hike to 10 pct from the current 8 pct in October the same year, according to the sources.

The ministry planned to carry out the special revisions together in October. But it is considering moving up the price cut by six months to let drug prices reflect the recent market developments by September 2019.

Besides the special revisions, the ministry is set to conduct a regular drug price revision in April 2020. This price change will be based on prices as of September 2019.

The ministry is worried that the April 2020 revision will not reflect up-to-date market developments unless the price cut is implemented by September 2019, the sources said.

An earlier price cut would mean a decrease in profits at medical institutions. The ministry will consider making the margin of the April price cut slim to ease the impact on them, the sources added.

The medical community largely opposes such a price reduction. Jiji Press