Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

The motion from the opposition would disallow a sensible policy that would save taxpayers $48 million over four years. If this disallowance motion passes, it will be a loss to taxpayers and will provide no benefits to doctors or patients at all. It will only benefit big pharmaceutical companies. It is yet another example of the fiscal irresponsibility of this opposition, which is determined to obstruct the Rudd government no matter the cost to the community.

The government’s measure is designed to ensure that taxpayers get value for money for medicines listed in the Pharmaceutical Benefits Scheme. It introduces three new therapeutic groups. These therapeutic groups ensure that the government and taxpayers pay the same low price for medicines that achieve the same health outcomes. The therapeutic group policy, as identified by the opposition, was introduced by the Howard government in 1997, highlighting once again the clear opportunism and irresponsibility of the opposition in opposing this measure.

The government has decided to form three additional groups on the basis of advice from the independent expert Pharmaceutical Benefits Advisory Committee. The committee advised the government that it was appropriate to create therapeutic groups for certain medicines to treat osteoporosis and Paget’s disease and antidepressants. Pharmaceutical companies were provided with the opportunity to comment on the matter, and this was carefully considered by the clinical experts on the committee. On the basis of the committee’s advice, the government has made the legislative instruments which would create these three new therapeutic groups. The therapeutic groups mean that, for these medicines which produce the same health benefits, the government only pays for medicines at the price of the lowest drug in a therapeutic group.

Turning to the impact on patients, the government’s measure does not affect patient access to medicines. Doctors can still prescribe any medicine they consider appropriate for their patient. Patients will continue to pay only the standard PBS copayments for their medicines.

Turning to taxpayers, the government’s measure would create, as I indicated, savings of $48 million over four years. This will help to maintain the sustainability of the PBS so that all Australians can have access to essential, affordable medicines. The PBS cost in the vicinity of $7.7 billion in 2008-09 and is expected to grow by 10.6 per cent in 2009-10. If we are to be able to continue to afford the PBS in the future, we have to ensure that our scarce health dollars are used as effectively as possible.

If these therapeutic groups are disallowed, then the government and taxpayers will end up paying pharmaceutical companies more for these medicines than they should. It will be $48 million going straight into the pockets of big pharmaceutical companies without providing a single benefit to patients or doctors. It shows, yet again, the irresponsibility and recklessness of the opposition in not supporting the continuation of this measure.

Question put:

That the motion (Senator Fierravanti-Wells’s) be agreed to.