THE Federal Government last night confirmed changes to the way it pays for high-cost Pharmaceutical Benefits Scheme medicines, with the move set to drive a "sharp reduction in the headline cost of the PBS," according to the Pharmacy Guild of Australia.
An update issued last night after Treasurer Scott Morrison's Budget speech said most rebates paid to the Government by medicine manufacturers will be gradually removed, with the measure to also help address pharmacy cash flow issues raised during the King Review (PD 03 May).
The reduction in PBS revenue amounts to $5.4 billion from 2018-19 through to 2021-22, which the Guild said means the PBS has once again been confirmed as the most fiscally sustainable component of the Australian health system.
Implementation details are yet to be finalised, with revenue rebates to be reduced from 01 Jul 2018 and an improved payment administration trial for certain high-cost medicines to commence from 01 Jul 2019.
The Guild said it would insist that the administration of these new arrangements was automated and seamless for community pharmacies, and that there was no reduction in dispensing remuneration including the Administration, Handling and Infrastructure (AHI) fee.
If the impact of this change is removed from the figures the headline cost of the PBS is estimated to decrease by 7.3% in real terms between 2018-19 and 2021-22, mainly reflecting ongoing medicine price cuts via the price disclosure process.
Including the high cost medicine measures the headline cost of the PBS will decline by a hefty 19.8%.
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