Major PBS reforms
May 2, 2014
THE Commission of Audit
report released yesterday has
called for major changes to the
Pharmaceutical Benefits Scheme
(PBS) (PD breaking news yesterday).
The report looks at actions
that can be taken to ensure
Commonwealth spending is
sustainable in the long term.
In order to manage expenditure
growth of the PBS, which had
more than doubled in the last
10 years, the report said “major
reform” of funding arrangements
and management of the PBS was
needed, as well as reforms to
community pharmacy.
Recommendations for the latter
included a proposal to deregulate
pharmacy location and ownership
rules to encourage greater
competition.
The report said the sector was
highly regulated and had limited
retail choice and competition.
“Such reform would be expected
to lead to more efficient delivery
and the development of alternative
retail models - such as pharmacists
available to dispense medicines at
supermarkets.”
A number of issues would need
to be considered to offset income
impact from this reform, including
giving pharmacists the chance to
offer more services to customers,
the report said.
It recommended changes to copayments,
with general patients
who had costs both below and
above the safety net seeing the copayment
rise by $5, and the general
safety net increasing to $1,613.77.
Concession card holders would
see a co-contribution of $2 once
the $360 threshold was exceeded.
The report also recommended
a set funding envelope for the
next seven years to reduce cost
pressures on the PBS, with new
medicines swapped out with
existing drugs, with a provision for a
listing in exceptional circumstances.
An independent authority would
be set up, the ‘PBS Entity’, with a
ceo answering to the Minister, that
would manage access to subsidised
medicines by negotiating directly
with pharmaceutical companies
and pharmacists about margins and
dispensing fees.
“It is anticipated that this process
would lead to further price falls for
pharmaceuticals.”
For industry reactions to the
reforms, see page two.
To read the report, CLICK HERE.
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