Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Health and Ageing, Senator Ludwig. I refer to a report in the Daily Telegraph on 11 June by Sue Dunlevy about how taxpayers’ money has been wasted lining the pockets of pharmacists. Given that the Pharmaceutical Benefits Scheme is supposed to support families and individuals who need vital medicines and is not intended to be a cash cow for pharmacists, is the government aware of the great drug rip-off which is currently taking place in this country? Can the government reveal how long they have known about this rort, especially given that the government has been looking for areas in which to cut back on costs?

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

I am not familiar with the particular article that you raised, but I can say in relation to the substance of the question that the government is always concerned about ensuring that there is affordable access to health care for all Australians, particularly those who have the least capacity to pay. That is why we do have the Pharmaceutical Benefits Scheme. The PBS copayment and safety net arrangements do help to ensure that subsidised medicines are affordable for all Australians and that low-income earners are eligible for medicines at a concessional rate of $5.30 per prescription. I can also say that the scheme that underpins the Pharmaceutical Benefits Scheme, Medicare Australia, which manages the Pharmaceutical Benefits Scheme on behalf of the Health and Ageing portfolio, does have a compliance system in place to ensure that if there are problems in the prescription area then, of course, there are a range of ways to deal with it. First of all, there is a fraud or tip-off line that can be accessed, so if there are allegations that the Pharmaceutical Benefits Scheme is being rorted then it can be brought to the attention of Medicare Australia so that it can be investigated.

If Senator Fielding has evidence of the Pharmaceutical Benefits Scheme being rorted in any way, then that information can be provided to Medicare Australia to ensure that they can investigate that area. But the benefits that do flow, if we are talking more broadly about the entire Pharmaceutical Benefits Scheme, do provide assistance to pensioners to ensure that they can access their medicine— (Time expired)

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. The article outlined an alarming rip-off. Why is the Rudd government paying pharmacists between 50 and 80 per cent more for generic drugs under the Pharmaceutical Benefits Scheme than the pharmacists are paying for the medicines? For example, can the government explain why they are paying pharmacists $58.99 for each 80-milligram prescription of the drug Simvastatin when chemists are paying only $18 per packet?

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

I can say—as I said in the answer to the first question—that the government is always concerned about reports where there may be rorts within the Pharmaceutical Benefits Scheme, particularly because it is a scheme that does provide support for pensioners and support for people on low incomes. Of course it is always necessary to ensure that there is integrity in the system and that it is accountable. The government is looking at the PBS reform process and the next community pharmacy agreement to ensure that the PBS provides value for money. The PBS reform is currently expected to save taxpayers about $3 billion over the next 10 years. These reforms do look at how we can reduce costs and improve access to new life-enhancing medicines, because the more money that we can save out of this area, the more money there is to ensure that we can support some of those more expensive drugs listed on the PBS. (Time expired)

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I am wondering whether the minister could give an undertaking to look at that article in detail and provide a response directly to parliament because the claims being made in that article are very substantive and it is a rort that needs to be stopped. Will the minister give an undertaking to provide a response back to parliament on that rort?

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

I thank Senator Fielding for his question. What I was going to say, before I ran out of time, was that in respect of the particular issue, I am happy to take that on notice and ask the minister what she can provide. It is an important issue. We do need to ensure the integrity of the Pharmaceutical Benefits Scheme. Any information that the minister can provide, I will bring back to the chamber and table it for the information of the Senate.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.