The Ministry of Finance is planning to call for cuts to list prices of drugs in response to increasing costs of drugs in an ageing population. In addition, from 2021 Japan plans to review drug prices annually instead of biannually as it currently does.
Critics, however, point out that reducing drug prices is likely to stifle innovation of new treatments, discouraging companies from working in the Japanese market. High cost drugs, such as hepatitis C and cancer treatments are likely to continue to contribute heavily to ever-increasing spending.
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