Nicola Roxon (Gellibrand, Australian Labor Party, Minister for Health and Ageing) Share this | Hansard source

The answer to the honourable member's question is as follows:

(a) The Australian Government is committed to a sustainable Pharmaceutical Benefits Scheme (PBS) as a key to keeping medicines affordable and accessible, and delivering better health services for all Australians.

The cost of the PBS has continued to grow over the past ten years, averaging growth of about nine percent a year, and it is estimated it will cost about $9 billion this financial year. This growth rate is higher than the six percent annual increase for general hospital and medical services, and of course much higher than the Consumer Price Index.

A fiscally responsible Government cannot continue to increase funding for one program at the expense of other pressing health needs, in the hope of a reduction in costs at some point in the future. The Government must deal with the fiscal circumstances and health priorities now, as well as assessing future growth patterns.

Consequently, the Government is concentrating on listing medicines on the PBS that treat serious and life threatening conditions where there are no alternative treatments on the PBS.

(b) The Government relies upon information provided by the PBAC in relation to clinical need for each medicine or vaccine, including whether alternative treatment options exist, and whether there were comparable listings in the past three years. Additional information taken into account is whether the listing provides expenditure savings and other technical information that the PBAC considered. The Government also relies on the expert advice from the Department of Health and Ageing and the Chief Medical Officer.

(c) and (d) The costs of measures considered by the Cabinet, including potential PBS listings are Cabinet in Confidence.

(e) (i) Any PBS listings with a financial impact are considered by the Cabinet.

(ii) When circumstances permit, the Government will reconsider those applications.

(f) The number of patients who may have been prescribed the deferred PBS listings in the first full year of listing is commercial-in-confidence.

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