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News Release
16 December 2011
New PBS prices announced today will drive significant savings to PBS
The new prices for medicines affected by the price disclosure policy on the Pharmaceutical Benefits Scheme (PBS) were published today. These price reductions will be effective 1 April 2012.
This is the largest single price cut in PBS history. The impact of this reform will be extensive and will deliver substantial savings to government. For the sake of patients and to secure a consistent chain of supply, we need to get these reforms bedded down first before embarking on any more policy change.
The price disclosure program progressively reduces the price of PBS medicines which are subject to competition, ensuring better value for money for those medicines. Price disclosure recognises that there is discounting of generic medicines in the market place. The price disclosure policy is designed to claw back these discounts and this drives important savings to the PBS.
Thus every time a consumer chooses a generic medicine instead of the original brand, there are substantial benefits to national savings. Supporting the uptake of generic medicines in Australia provides a three way win for the patient, the taxpayer and the economy.
Members of GMiA are already working with customers to achieve a smooth transition to the new prices on 1 April 2012. Members of GMiA have strong experience in the implementation of price changes on the PBS. It is this experience and understanding that make GMiA members the ideal partner for customers during this transition period.
Price reductions will apply to 75 products out of a total pool of 238 products subject to the price disclosure policy. The size of the reduction ranges from 82.7% - 10.5% with the average unweighted reduction being 28.7%.
This list of medicines affected by price disclosure price reductions is available at the PBS website at http://www.pbs.gov.au/info/industry/pricing/eapd/price-reductions. Full details of the price reductions can be found on the Federal Register of Legislative Instruments website.
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.
Contact: Kate Lynch CEO 0432 500 308