THE government and Medicines Australia are close to finalising a new five-year agreement which will see further cuts to the cost of some drugs in return for new listings and certainty for the sector.
Set to be confirmed as part of the 2017-18 budget, Fairfax is reporting MA "has agreed to an increase in the mandatory price cuts triggered by the reimbursement of a second brand of an already listed medicine, delivering major savings".
The budget package would see the government save as much as $400 million annually, it is forecast.
It's also considered likely the budget will see Health Minister Greg Hunt unlock the $600 million promised under the Sixth Community Pharmacy Agreement to expand professional services.
At APP last month Guild President George Tambassis raised concerns the money would not be forthcoming because it was subject to yet-to-be-completed reviews of existing programs.
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