Australian Parliament backs PBS reforms; R&D tax credit bill moves forward

Australia’s Parliament today passed the National Health Amendment (Pharmaceutical Benefits Scheme) Bill 2010. The Bill legislates price cuts to PBS medicines agreed in the Memorandum of Understanding between Medicines Australia and the Commonwealth government.

The PBS accord, announced in the May Budget, will deliver PBS savings to taxpayers worth A$1.86 billion ($1.83 billion) over five years. The savings will be realized by cuts in the price the federal government pays for hundreds of commonly prescribed off-patent medicines.

The move was welcomed by trade group Medicines Australia, which said it would work with all sides of politics and other health care stakeholders to ensure the MoU was implemented efficiently. Chief executive Brendan Shaw stated: “This legislation will lead to reductions in the price consumers pay for hundreds of medicines on the PBS. It will also ensure that Australian taxpayers get a fairer deal on the price the government pays for PBS medicines. Effectively, this will mean a more sustainable PBS.”