PBS Growth
February 21, 2012
The Medicines Partnership of
Australia (of which the
Pharmacy Guild is a member)
says PBS growth is running at a
completely acceptable rate, and
continues to provide huge
health benefits for the nation.
As the medicines industry
moves through a time of
significant change, pricing and
policy predictability will be
paramount for the sector.
The latest analysis of the PBS
expenditure undertaken by the
partnership, using Medicare
Australia data, shows that growth
in government expenditure on
the PBS last year was 2.4%.
Given the inflation rate last
year was 3.1%, it suggests that
government spending on the
PBS in 2011 actually fell in real
terms, and is below the
government’s own growth
target of 2% in real terms.
Over the last decade, PBS
expenditure as a proportion of
GDP has remained steady at
between 0.6% and 0.65%.
The Australian Government’s
2010 Intergenerational Report
predicted that PBS expenditure
would be 0.7% of GDP through
to 2020.
Already, actual expenditure in
2009-10 and 2010-11 have both
come in below those forecasts.
The PBS actually represents
the most cost-effective element
of health expenditure, and
should not be subjected to
further savings measures which
could threaten the best subsidised
medicines scheme in the world.
While the medicines sector is
under pressure, it achieved
exports of $3.7 billion in 2011
– more than the car industry and
wine industry.
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