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Tuesday, 9 July 2019

Advantages Of International Reference Pricing China And Japan

By Betty Sanders


The ever-escalating cost of healthcare has made it difficult for most people to access health care services. Governments are, therefore forced to step in and control prices to ensure universal access. Various strategies can be used to determine the cost of medicines, and IRP is an emerging system in this sector. When it comes to International Reference Pricing China and Japan stand to gain a lot due to their economic and geographic similarities. For more details on how these two countries can benefit from this system, read on.

There is a streamlined cost of medicines. Before, the same drug could go for different prices within the same country. These differences could be quite big percentages. IRP has eliminated such disparities in market discrimination. Now, the cost of drugs is not only across the country, but also across the region.

There is increased market access. The system indicates clearly the amount the patient is allowed to pay. Any excesses are handled by the government or insurance agents, depending on the country's policies. This encourages people to seek medical services as they are certain that they will not be left penniless by the time they come back from the hospital.

IRP limits the control of companies over the costs of medicines. There are companies that are always out to fleece patients. Their products are sold way over the market prices simply because they are patented. This can limit access to health care, especially among the poor. Governments want to make sure that everyone can afford health care.

Patients experience greater benefits. When the prices are clearly known, it is not only access to health care that is increased, but also quality. It has been evidence that there is increased quality in care among the drugs under the IRP system. This can be attributed to the fact that many people can now afford these medicines and get the treatment they need.

Without referencing, it would be difficult to determine the prices of medicines. There are several other methods that can be applied, but they are too expensive. IRP is a system that still makes sure that while the manufacturer can make profits, the patient can also afford the medicines. Here, everyone wins.

This is a relatively simple method. For the implementation of this system, countries only need little information such as the costs of the same medicines in other countries. The countries used for referencing are normally those that share similar economic environments or geographic similarities. It is assumed that referencing countries have fairer and competitive prices.

Implementation is cheap. For a system to be implemented with ease, it should be easy to replicate. The International Reference Pricing relies heavily on communication. There is little resource usage after development. The manufacturers and stakeholders in the industry are simply communicated to the polices for them to implement.

Over the years, the IRP has gained increased usage. It is mostly used in Asia but is also dominant in Europe. The United States is also considering its adoption. As this growth is witnessed across the globe, there is a lot that other countries can learn from China and Japan.




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