Medicines Australia says PBS is costing less than expected

Trade group Medicines Australia says the release of the 2013-14 Final Budget Outcome shows the government has spent less than they anticipated on the Pharmaceutical Benefits Scheme (PBS).

It said that the Final Budget Outcome has seen a write down of PBS expenditure of A$168 million ($148 million) in the four months since the 2014 Federal Budget, while it is the fifth consecutive time the government has had to revise its figures downwards. It added that the PBS is costing 14% less, or A$1.7 billion, less than the government forecast it would in 2011.

Medicines Australia chairman Martin Cross said: “The latest Budget figures add to a growing body of evidence showing the PBS is sustainable, and in fact, the PBS has not grown in real terms for five years. The price disclosure reforms agreed between government and industry continue to pay off for government, with another un-budgeted $168 million in savings over the past four months alone. Let’s not forget in August, the Parliamentary Budget Office forecast growth in PBS spending will slow to 0.3% annually out to 2024-25.”