Final Budget Outcomes Reveal Industry Efforts To Take Pressure off PBS
The Final Budget Outcome papers released today reveal the enormous efforts of the members of Medicines Australia to keep expenditure low on the Pharmaceutical Benefits Scheme (PBS) while providing Australians with incredible access to breakthrough medicines.
Our members invent, research, develop and manufacture the latest therapies that help to make Australia healthier and more productive and also take the pressure off our hospitals.
The Final Budget Outcome for 2016-17 shows that the Federal Government spent $13.379 billion on the PBS.
However, the final outcome is a gross figure that does not subtract the significant rebates provided by our members through pricing and supply agreements with government.
It’s understood that when these rebates are taken into account the real cost of the PBS continues to remain relatively flat year on year.
The rebates are in addition to the recent Strategic Agreement signed between Medicines Australia and the Federal Government that will deliver agreed price reductions for on-patent medicines totaling $1.8 billion over five years.
Medicines Australia Chief Executive Milton Catelin says, “these rebates offer Australians extraordinary value for money on breakthrough treatments for life-threatening conditions such as cancer and infectious disease.”
“Without these rebates, which are confidential between companies and government, many of the latest medicines may be significantly delayed in coming to Australia or may never be accessed via the PBS at all.”
“Rebates have become increasingly commonplace due to the incredibly tough pricing arrangements that have evolved due to the current budgetary position in Australia.”
“They allow companies to offer confidential agreements which deliver incredible discounts or volume agreements that would otherwise not be possible.”
“Our members continue to make significant sacrifices day in and day out to ensure that Australia has an affordable PBS that still provides incredible access to innovative medicines.”
“It’s not only rebates, there is also the recently signed Strategic Agreement that reduces prices for on-patent medicines that have taken billions of dollars and years of investment to deliver to patients.”
“In fact, our members have helped to deliver ongoing and growing cost savings measures that have reduced pressure on the PBS by more than $20 billion and counting since 2007.”
“It’s a contribution that regrettably goes largely unrecognised but the innovative medicines industry continues to deliver for Australia.”
“Our members are proud of their role in the development of breakthrough medicines and vaccines and are committed to their continued access for all Australians,” said Mr Catelin.
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Contact: James Boyce – 0423 239 265