Australian Audit Commission’s “nuclear option to attack the PBS is madness”

The Australian National Commission of Audit’s complete dismantling and destruction of the Pharmaceutical Benefits Scheme (PBS) via a damaging set of recommendations could have the public erroneously believing that the PBS has failed and must be growing out of control, claims the country’s generics industry.

The Commission’s Report, released last week, acknowledged the success of PBS policy in reducing expenditure, with payments under the scheme expected to be A$426 million ($395 million) less than previously forecast for 2013/14. These savings have been driven by the generic medicines sector.

However, says the Australian Generic Medicines Industry Association (GMiA), the Commission did not recognize the significant and ongoing savings that are being driven by existing policies. It is madness to consider overhauling a system that is already driving significant savings and is designed to drive continual and ongoing future savings, it argues. Only last month, this government introduced further legislation that will drive down the price of generic medicines even faster - this legislation has not yet even been implemented.