New PBS medicines low
May 20, 2013
A MAJOR report released this
morning by Medicines Australia
has found that the number of new
PBS listings last year was the lowest
level in 20 years, despite huge
savings to the government from the
PBS reform process.
Commissioned by Medicines
Australia, the Impact of Further
PBS Reforms study undertaken by
the Centre for Strategic Economic
Studies says that the reforms will
deliver up to $18 billion in savings,
while also reducing patient outof-
pocket costs for prescription
medicines.
It’s the first study to quantify
savings over such a long period,
and showed that PBS spending over
the next seven years is likely to be
constrained due to the reforms
and patent expiries,” assuring the
sustainability of the PBS”.
Medicines Australia ceo Brendan
Shaw said that with the savings
having been delivered, “the issue
now is ensuring new medicines can
be listed”.
MEANWHILE the Pharmacy
Guild welcomed the report, with
executive director David Quilty
saying the savings quoted are most
likely understated, as it doesn’t take
into account the increasing number
of private prescriptions that are
now being dispensed.
Quilty said it is vital that the
large savings from price disclosure
“do not undermine the viability
of industry participants, including
community pharmacy”.
Over an 8 year period to 2017-
18 the report estimates that the
impact on the 2010 reforms on
pharmacies, wholesalers and
generic brands combined will be
$1.582 million.
“Only about $270 million of this
- the direct mark-up flow-on effect
- has so far been committed to be
returned to pharmacy through the
Fifth Agreement Pharmacy Practice
Incentives,” Quilty stated.
He said the direct and indirect
impact of price disclosure will
be a central consideration in the
negotiation of the next agreement.
“The Medicines Australia report
and the expenditure downgrades
in last week’s Budget indicate the
likely need for increased dispensing
remuneration in the next
Community Pharmacy Agreement
to offset the significant impact of
price disclosure,” Quilty added.
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