The Medicines Partnership of Australia (MPA) warmly welcomes the Federal Government’s additional investment in the PBS in this week’s Budget.
The Budget makes a commitment to investing $2.4 billion in new medicine listings from 2017-18 to 2021-22. This includes $1.4 billion for new and amended listings on the PBS, including medicines to treat spinal muscular atrophy, breast cancer, relapsing-remitting multiple sclerosis and a new medicine to prevent HIV.
In addition, the Budget includes $1 billion in provisioning for future PBS listings in line with the Government’s commitment to list all new medicines recommended by the independent Pharmaceutical Benefits Advisory Committee (PBAC).
Furthermore, MPA welcomes the Government’s strong leadership in enhancing the transparency of its investment in the PBS.
This will be achieved by improved administration arrangements whereby the Government will pay the negotiated price for medicines with special pricing arrangements. This will reduce the PBS revenue received by the Government with a corresponding reduction in PBS expenses, and no change to the Government’s overall investment in the PBS. See Chart below.
- Expenses include $1.0 billion that the Government has provisioned for new medicine listings.
The Net PBS Expenses graph in the Budget Overview document shows that the Government’s overall PBS net investment (i.e. net PBS expenses) – including the $1 billion that the Government has provisioned for new medicine listings – will increase from $8.7 billion in 2017-18 to $9.3 billion in 2021-22. See Chart below.
The MPA is committed to working with the Government to ensure that all Australians derive maximum benefit from the PBS, including the $2.4 billion investment in new and amended listings announced in this week’s Budget.
Media contact: Greg Turnbull 0412 910 261
The Medicines Partnership of Australia (MPA) is an alliance of peak industry associations representing key members in the supply chain that deliver medicines and pharmacy services to Australian consumers.