National Assembly Review and Financial Analysis Pave Way for Potential Drug Price Reductions
The National Assembly's push for insurance coverage of treatment switches between JAK inhibitors and biologics for atopic dermatitis is advancing, with a financial impact analysis currently underway. This development has sparked anticipation that drug price reductions could follow.
As of November 4, available treatments for atopic dermatitis include JAK inhibitors like AbbVie's Rinvoq (upadacitinib) and Lilly's Olumiant (baricitinib), along with biologics such as Sanofi's Dupixent (dupilumab) and Leo Pharma's Adtralza (tralokinumab). While patients and healthcare providers have long advocated for insurance coverage that allows switching between treatments, citing cases of side effects or inadequate efficacy, government guidelines have so far restricted coverage, requiring patients to meet specific criteria. Currently, patients must try a primary treatment for three months and have an Eczema Area and Severity Index (EASI) score of 23 or higher to qualify for an alternative.
These restrictions have led to patient dissatisfaction, as many argue they must wait for their condition to worsen before accessing new treatments. Persistent calls from patients and clinicians led to the issue being raised in a recent parliamentary audit, prompting action from the Health Insurance Review & Assessment Service (HIRA), which completed an initial review with relevant academic societies in September.
HIRA is now conducting a financial impact analysis to determine the budget necessary for treatment switching. If the analysis reveals significant costs, drug price reductions may be considered, similar to previous cases in 2023 when diabetes and osteoporosis drug prices were reduced following reimbursement expansions.
A HIRA representative noted, “A financial analysis is necessary for atopic dermatitis treatment switches.” A pharmaceutical industry spokesperson added, “Direct discussions on price reductions have not yet taken place, but we’re prepared to engage with the government if financial impacts are substantial.”
With growing interest from both patients and clinicians, coverage for treatment switching in atopic dermatitis may become a reality in 2025, offering new hope for those in need of flexible treatment options.
