Reimbursement system
Consumable Items such as medical device or Quasi-drug used in medical treatment for NHI insured patients and should be approved by MFDS(Former KFDA)
or by the relevant laws and authorized by Minister of Health and Welfare
• Disposable Medical materials, such as the artificial joint, stent, and etc which are prescribed by “Medical Device Act”
• Quasi-drugs which are prescribed by “Pharmaceutical Affairs Act” such as gauze, bandages and so on.
• Some items of manufactured goods (batteries, CD, etc.)
| System | Negative List System : All medical materials are classified as NHI covered service (Reimbursement) or NHI non-covered service (non-reimbursement) |
|---|---|
| Listing Application | Apply within 30days from the date of MFDS approval by manufacturer or importer |
| Notification | Public announcement by Minister of Health and Welfare |


‘Value Appraisal’ is to recognize premium value of innovative medical devices on
the reimbursement price. For the value appraisal, the submission of clinical usefulness
documents (e.g., clinical evidence or technological and functional evidence, etc.) is
mandatory.
The evidence should include comparison data which shows improvement
of the device applied to the Value Appraisal process. 10% to 100%
can be
recognized through Value Appraisal.

The value appraisal has two tracks according to the required types of evidence to prove the clinical usefulness:
Track A (Value Appraisal for Innovation) and Track B (Value Appraisal for Technical Improvement) Track A (Value Appraisal for Innovation) requires clinical evidence and make evaluation
with the ‘clinical usefulness A’ standard. The eligible premium ratio is 10% to 100%. Track B (Value Appraisal for Technical Improvement) requires technical and
functional evidence and make evaluation with the ‘Clinical usefulness B’ standard. The eligible premium ratio is 10% to 50%.
| Standard | Required Type of Evidence | Premium Ratio | |
|---|---|---|---|
| Track A | Clinical Usefulness (A) Cost Effectiveness (C) Technology Innovation (D) |
Clinical Study Literature | 10 to 100% |
| Track B | Clinical Usefulness (B) Cost Effectiveness (C) Technology Innovation (D) |
Technical and Functional Evidence | 10 to 50% |