Shenzhen’s Draft Proposal for VBP Drug Procurement and Medical Insurance Fund Management Released

The Healthcare Security Administration (HSA) Bureau of the Shenzhen municipality has released a “Shenzhen Drug Volume-based Procurement (VBP) Medical Insurance Fund Balance Retention Management Measures (draft proposal)” and is soliciting public feedback until June 13, 2024. This document will apply to all VBP drugs with purchase agreements expiring this year or later and will have a validity period of five years. Drugs listed on the National Reimbursement Drug List (NRDL) that are included in VBP tendering will be subject to annual budget management within the procurement cycle, with surpluses settled based on the procurement agreement period.

The document provides clarity on the balance retention money calculation method: the balance base equals the budget of medical insurance funds for VBP drugs minus the amount of medical insurance expenditures for VBP drugs. The budget for medical insurance funds for VBP drugs is determined based on factors such as the agreed purchase quantity base for VBP drugs, the weighted average price of generic drugs before VBP, the actual payment ratio of medical insurance funds, and the proportion of insured patients using VBP generic drugs. The remaining funds for VBP drugs are included in the expenditure account of basic medical insurance benefits. If the actual purchase quantity of the winning bids exceeds the agreed purchase quantity, it will not be included in the total medical insurance expenditure range of VBP drugs. For drugs with the same generic name that have completed the complete procurement cycle and are retained, the remaining funds will not be included in the accounting of the remaining funds in subsequent VBP rounds.

Additionally, the document specifies the assessment indicators for designated medical institutions, dividing them into four levels based on assessment scores: A (above 80 points), B (70-80 points), C (60-70 points), and D (below 60 points), with corresponding retention ratios of 50%, 40%, 30%, and 0% (not to be distributed). The public notice period for the settlement of surplus retention and the assessment results of designated medical institutions shall not be less than five working days. If there are objections to the public announcement results, written feedback and explanation of the situation can be submitted. The municipal medical insurance agency shall make a decision within ten working days from the date of receiving the feedback. After final confirmation, the remaining funds will be disbursed within ten working days.

The document emphasizes that designated medical institutions should improve their internal assessment methods and allocate surplus and retained funds reasonably based on the assessment results. No less than 50% of the remaining funds can be used for internal autonomous distribution of performance-based salary incentives, promoting the rational use of drugs and generic drugs, and prioritizing the use of winning bids.- Flcube.com

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