Australian Intergenerational Reports have misrepresented PBS expenditure: Medicines Australia

The Intergenerational Reports on aging from the Australian government have seriously overestimated Pharmaceutical Benefit Scheme expenditure as a proportion of GDP, according to trade group Medicines Australia.

This oversight highlights the pitfalls of ignoring significant reforms undertaken in the prescription medicines sector over the past decade.

Tim James, chief executive of Medicines Australia, said: “Analysis released today confirms that the PBS is sustainable and is well placed to meet the needs of an aging population. Medicines listed on the PBS continue to be a valuable and a cost-effective investment in Australia’s health, wealth and prosperity. Medicines provide a huge advantage to not only the health and quality of life of the individual patient but to our society and economy more broadly, and we will be expecting this to be recognized in the upcoming IGR. It’s essential that the 2015 IGR not only acknowledges the savings accrued to date but also the enduring savings mechanisms embedded into the system to ensure the future sustainability of the PBS. It is also important that the report considers the broader benefits attributable to the use of innovative medicines.”