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KMID : 1170320070130020039
Korean Journal of Health Economics and Policy
2007 Volume.13 No. 2 p.39 ~ p.54
Study on the drug expenditure trend in Korea
Bae Eun-Young

Abstract
In Korea, drug expenditure has increased at a rate of 11%. It exceeds that of medical expenditures. Three components - price, volume and proportion of high-low priced drugs - are identified as contributing factors of pharmaceutical expenditure increase. this study aims to investigate the impact of these factors on recent drug expenditure trend. The claim data from 2001 to 2004 is collected and analysed to investigate the influence of each factor on drug expenditure trend. As a result, we can find the drug price itself has been decreasing every year, and has contributed to lowering drug expenditure increasing rate. Volume has grown except for 2002-2003 when groups of non-prescription drugs were de-listed. Proportion of high priced drugs continued to increase since 2000 separation policy. In conclusion, volume increase and prescription shift to high priced drugs among same therapeutic groups is most influencing factor of recent drug expenditure trend.
KEYWORD
drug expenditure, price, volume, contributing factor, structural effect
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