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News Release
30 November 2011
MYEFO figures show generic medicines continue to play critical role in mangaing the PBS growth rate
Yesterday’s Mid Year Economic and Financial Outlook (MYEFO) announced by Government confirmed that the growth rate of the Pharmaceutical Benefits Scheme (PBS) is well below the projected growth rate and most significantly under control.
The lower than expected PBS growth rate in 2010/11 has generated a $265 million budget reduction in 2011/12 driving a total budget reduction of $1.8 billion over 4 years.
Generic medicines continue to drive important savings to the PBS. The original budget forecast of savings of $1.9 billion over 4 years represents significant savings and the actual savings are likely to be greater than this.
Budget adjustments announced in MYEFO have signalled further savings of $136.3 million over the forward budget projections due to price amendments on the PBS arising from more competitively priced medicines.
The MYEFO forecasts an increase in cash payments above original budget forecasts of $67 million in 2011‑12 / $445 million over four years as a result of new medicines to be listed on the PBS.
The Generic Medicines Industry Association (GMiA) is the national association representing companies that manufacture, supply and export generic medicines. The generic medicines sector is a high value-add sector delivering significant benefits to the Australian public by way of affordable medicines and high skilled jobs.