ABSTRACT
The South Korean healthcare system has two components: The National Health Insurance (NHI) and Medical Aid (MA). NHI is a social insurance system that covers all citizens. MA provides healthcare to lower-income groups, which are 3. 6 percent of the population. Universal healthcare coverage was achieved in 1989. The health insurance program falls under the responsibility of the Ministry of Health and Welfare. The National Health Insurance Corporation (NHIC) serves as the insurer. Implementation of reviews and fee schedules is handled by the Health Insurance Review and Assessment Service (HIRA). Market authorization for prescriptions drugs is granted by the Korean Food and Drug Administration (KFDA) after review of efficacy and safety. Government reimbursement decision making involves the review by HIRA and negotiations with the NHIC. After successful negotiations, the Ministry of Health and Welfare formally approves the reimbursement at the agreed price, notifies the manufacturer and places the drug on the positive list.
