Epidiolex Health Insurance Claims Surpass 10 Billion Won... "Need to Localize Cannabis-Based Medicines"

Nam Insoon: Health Insurance Claims Double in Three Years, Prescriptions Up 55%
"Regulatory Reform Needed to Enable Domestic Development and Commercialization of Imported Medicines"

The amount claimed under the national health insurance for Epidiolex, an antiepileptic drug containing the medical cannabis component CBD, has doubled over the past three years, surpassing 10 billion won last year. Amid this trend, there are calls to localize production in order to reduce both the financial burden on patients and the outflow of health insurance funds.

According to data received by Assemblywoman Nam Insoon of the National Assembly Health and Welfare Committee from the Ministry of Health and Welfare on October 15, the amount claimed for Epidiolex, a treatment for severe epilepsy, has surged by 104.1% over three years, from 4.9 billion won in 2021 when it became eligible for insurance coverage, to 8.1 billion won in 2022, 9.2 billion won in 2023, and 10 billion won last year.

During this period, the number of prescriptions increased by 55.4%, from 1,653 in 2021 to 2,351 in 2022, 2,480 in 2023, and 2,569 in 2024.

This year as well, in just the first half, the number of Epidiolex claims reached 1,449, with the claimed amount totaling 5.3 billion won, continuing the upward trend.

As a result, the annual medication cost per person for Epidiolex, combining the patient's out-of-pocket expense (10% applied as a special case) and the National Health Insurance Service's share, has also increased from 13 million won in 2022 to 14 million won in 2023, and 15 million won in 2024.

Currently, only finished Epidiolex products approved overseas are being imported in limited quantities through the Korea Orphan Drug Center. This is because the current Narcotics Control Act regulates both tetrahydrocannabinol (THC), the psychoactive component of cannabis, and CBD, which has proven medical benefits, in the same way.

However, according to an analysis by the National Assembly Research Service, major countries such as the United States, China, and Japan have already relaxed regulations related to cannabis and are developing pharmaceuticals and health supplements. The United Nations Commission on Narcotic Drugs also removed cannabis from the list of narcotics in 2020. Furthermore, the second Trump administration has declared its intention to legalize medical cannabis at the federal level.

Assemblywoman Nam Insoon stated, "There is a growing call to improve regulations so that the development and commercialization of domestically sourced ingredients for cannabis-based medicines with proven safety and efficacy can be enabled." She added, "To lower the price of expensive cannabis-based medicines through localization and foster a high value-added pharmaceutical industry, it is urgent to relax the relevant laws and regulations."

This content was produced with the assistance of AI translation services.