PBS untouched by Budget
May 9, 2012
TODAY the industry breathed a
big sigh of relief, after the release of
the Federal Budget revealed no
further cuts will be made to the
Pharmaceutical Benefits Scheme
over the next 12 months.
Welcoming the decision, the
Generics Medicines Industry
Association (GMiA) said the
Government is right not to seek
further savings to the PBS due to
the fact that the scheme is suffering
from “reform fatigue”.
Speaking in the wake of the
Budget, CEO of GMiA, Kate Lynch,
said that the generic medicines
sector is already reeling from the 01
April price reductions, and any
more cuts to the PBS would have
had a negative impact on the ability
of those in the generic medicines
sector to ensure the timely delivery
of medicines to all Australian
patients.
“The impact of the cuts of more
than 23% to the average price of
some 200 medicines is still to play
out,” a statement from GMiA said.
“What most Australians don’t
realise is 80% of them – those
concessional patients – won’t
see any benefit from these 01 April
cuts in any case,” Lynch said.
“They pay the same for their
medicine regardless of these cuts,”
Lynch added.
GMiA also used the release of the
Budget to call on the Government
to put in place price signals which
would provide patients who opt for
a generic medicine over branded
drugs, with savings.
“Every time a consumer chooses
a follow-on generic medicine, there
are substantial savings
to nation,” said Lynch.
“But now we need patients to
also reap the rewards over the
counter.
“We need to ensure the PBS
remains sustainable and affordable.
“That means no more cuts
and, in the medium term, we need
policies that supporting the uptake
of follow-on generic medicines,”
she added.
MEANWHILE Medicines Australia
responded to the Budget by
praising the Memorandum of
Understanding, saying that the
Budget reflected the Government’s
commitment to the MoU, which
agrees to no further price related
savings measures for the life of the
agreement.
“The MoU is already well on the
way to delivering a minimum of
$1.9 billion in savings to the PBS,”
said Medicines Australia chief
executive Dr Brendan Shaw.
“PBS spending growth is currently
at historically low levels, so it’s
clear that the MoU is working and
it’s clear that the PBS is
sustainable,” Shaw added.
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