PBS expenditure falling
May 8, 2012
THE Pharmaceutical Benefits
Scheme has not shown any growth
in real terms according to recent
data contained in the Medicines
Partnership of Australia’s PBS
Scorecard for May, with
Government expenditure on the
PBS in the 12 months to 31 March
2012 just 0.8%.
After adjusting for inflation which
currently sits at 1.6%, this
represents a decline of 0.8% in real
terms, a figure which is well below
the Government’s 2% real term
growth target.
Speaking in the wake of the
release, the Medicines Partnership
of Australia (comprised of The
Pharmacy Guild, Medicines
Australia, GMIA, ASMI, the PSA and
the National Pharmaceutical
Services Association) said that this
decline in expenditure is likely to
continue, given that the impact of
the 01 April price reductions has
not yet shown in the official figures.
“The PBS reforms are working -
the Government is on track to save
at least $1.9 billion dollars over the
forward estimates and the current
lack of (real) growth reinforces the
industry’s long-held position that
PBS is well under control,” a
statement from the Partnership
said.
Further strengthening the
downward trend argument, is the
fact that the ten year average
growth in PBS between 2000-2010
has been shown to be the lowest
since the 1980s, with the
Department of Health’s Annual
Report 2010-11 finding that in the
financial year to 30 June 2011, PBS
expenditure grew by 5.7%.
In addition, Medicare Australia data
also supports evidence that the long
term downward trend is continuing,
with current growth rate figures of
2.4% for calendar year 2011.
“ Over the last decade, PBS
expenditure as a proportion of GDP
has remained steady at between
0.6% and 0.65%,” the Partnership
said.
“This percentage is now on a
downward trend, as PBS
expenditure is now decreasing (in
real terms) while the economy
continues to grow,” the Partnership
added.
The above article was sent to subscribers in Pharmacy Daily's issue from 08 May 12To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 08 May 12
