ACOSS proposes alternative evidence-based and equitable savings to Australian health services

The Australian Council of Social Service (ACOSS) has called on the federal government to heed the growing community concern about affordable, accessible universal health care; and to focus on evidence-based solutions to pull back wasteful spending in the health Budget.

"We know that our health system faces increasing costs with an ageing and growing population, but it's certainly not a crisis," said ACOSS CEO Cassandra Goldie, adding: "Savings measures should be selected that will either drive improved health outcomes, or cut real waste in existing spending."

She noted that Australia’s Prime Minister has asked for alternatives to the government's proposals for the Health Budget. “ACOSS welcomes the invitation. Our proposals are grounded in evidence and would improve the effectiveness of government spending in improving health outcomes for the greatest number of people,” Dr Goldie argued.

Urges the government to overhaul industry subsidies

Of particular relevance to the pharmaceutical sector will be the OCOSS call for changes to industry subsidies. Dr Goldie said the group want the government to Overhaul ineffective industry subsidies including in the Pharmaceutical Benefits Scheme (PBS) with an initial saving of almost A$2 billion ($1.64 billion) to reduce the cost of out of patent prescription medicines. Simply introducing single pricing mechanisms, or accelerating these reforms in other ways, can deliver significant further savings. ACOSS has proposed alternatives that would provide a A$1.8 billion dollar saving in this area in the next final year, increasing to A$2 billion in 2016-17.