ID :
34912
Wed, 12/10/2008 - 16:11
Auther :
Shortlink :
http://m.oananews.org//node/34912
The shortlink copeid
Hands off the PBS, Treasury told
The pharmaceutical industry has issued a blunt warning to federal Treasury: hands off taxpayer-subsidised prescriptions. Departmental number crunchers will be looking for savings as they prepare next May's budget amid the global financial crisis.
They will be dealing with a much leaner projected surplus than last May's $21.7
billion estimate, or possibly a deficit, after the government spent $10.4 billion in
pre-Christmas hand-outs aimed at stimulating the economy.
Pharmaceuticals lobby group Medicines Australia warned on Wednesday it would be
false economy for the government to cut funding to the Pharmaceutical Benefits
Scheme (PBS).
The PBS costs taxpayers about $7 billion a year.
Chairman Will Delaat said the PBS was the only area of health where taxpayers knew
exactly how much value they get for their dollars.
Treasury should apply the prime minister's principles of evidence-based
decision-making when settling on savings.
"Until (that) ... is available, my message to Treasury is very clear: don't
jeopardise the PBS."
The previous Howard government introduced changes to the PBS last year with support
from Labor and Medicines Australia.
The changes included price cuts of 25 per cent to more than 400 listed medicines
from August this year.
An unintended consequence of the price reductions now and during the next three
years was some new medicines may not be commercially viable in Australia, Mr Delaat
said.
That's because there was a price floor below which global companies were not
prepared to fall in negotiating reimbursement agreements with governments.
"In some cases, it will simply not be commercially viable for a pharmaceutical
company to bring new medicines to Australia where the price on offer is
substantially less than it may have been six months ago."
Mr Delaat also called on the government to speed up the approval and PBS listing
process for new medicines, which can take up to three years.
The process could be cut by up to 18 months if a medicine was registered with the
Therapeutic Goods Administration and its listing on the PBS ran concurrently.
Comment was being sought from federal Health Minister Nicola Roxon.
They will be dealing with a much leaner projected surplus than last May's $21.7
billion estimate, or possibly a deficit, after the government spent $10.4 billion in
pre-Christmas hand-outs aimed at stimulating the economy.
Pharmaceuticals lobby group Medicines Australia warned on Wednesday it would be
false economy for the government to cut funding to the Pharmaceutical Benefits
Scheme (PBS).
The PBS costs taxpayers about $7 billion a year.
Chairman Will Delaat said the PBS was the only area of health where taxpayers knew
exactly how much value they get for their dollars.
Treasury should apply the prime minister's principles of evidence-based
decision-making when settling on savings.
"Until (that) ... is available, my message to Treasury is very clear: don't
jeopardise the PBS."
The previous Howard government introduced changes to the PBS last year with support
from Labor and Medicines Australia.
The changes included price cuts of 25 per cent to more than 400 listed medicines
from August this year.
An unintended consequence of the price reductions now and during the next three
years was some new medicines may not be commercially viable in Australia, Mr Delaat
said.
That's because there was a price floor below which global companies were not
prepared to fall in negotiating reimbursement agreements with governments.
"In some cases, it will simply not be commercially viable for a pharmaceutical
company to bring new medicines to Australia where the price on offer is
substantially less than it may have been six months ago."
Mr Delaat also called on the government to speed up the approval and PBS listing
process for new medicines, which can take up to three years.
The process could be cut by up to 18 months if a medicine was registered with the
Therapeutic Goods Administration and its listing on the PBS ran concurrently.
Comment was being sought from federal Health Minister Nicola Roxon.
