Australian govt tables further evidence that PBS is sustainable

The PricewaterhouseCoopers report on reform of the Australian Pharmaceutical Benefits Scheme released by the government last night is fresh evidence that the PBS is sustainable and that the reforms are working, according to the country's research-based drug industry group Medicines Australia. The report finds that the PBS will grow by just 5.99% cent a year out to 2018.

Commenting on the report's release, Medicines Australia chief executive Brendan Shaw said: 'This report provides further evidence that the PBS is sustainable and that the reforms are working. Last week's Intergenerational Report reached the same conclusion. This is another vote of confidence for the PBS. A key point of these reforms was to ensure taxpayers didn't pay over the odds for older, off-patent medicines. Price cuts over the next couple of years will significantly lower prices for those older drugs. But for new drugs, Australia already pays the lowest prices in the developed world. Effectively, Australian taxpayers are getting new medicines 20% cheaper compared to the OECD [Organization for Economic Cooperation and Development] average.'

PBS part of the health costs solution