Health and Ageing
Election Commitments
Pharmaceutical Benefits Scheme — maintaining the capacity for listing drugs through cost recovery
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of Health and Ageing | -11.1 | -1.6 | 2.9 | 2.8 | 2.8 |
| Related expense ($m) | |||||
| Department of Health and Ageing | - | 2.5 | 2.3 | 2.2 | 2.2 |
The Government will provide an additional $9.2 million over four years for the administration of the Pharmaceutical Benefits Advisory Committee and the system for listing drugs on the Pharmaceutical Benefits Scheme.
Costs associated with evaluating drugs for listing on the Pharmaceutical Benefits Scheme have increased over time as the result of more stringent evaluation requirements and the increased complexity of submissions to list new drugs. The increases will ensure that Australians continue to have reliable, timely and affordable access to effective and safe medicines. The measure includes the increased cost of remunerating Pharmaceutical Benefits Advisory Committee members, conducting pharmaceutical evaluations, and increasing the frequency of updates to Pharmaceutical Benefits Scheme listings from three to twelve times per year.
The additional funding provided under this measure will be recovered through cost‑recovery arrangements commencing on 1 July 2008. Companies making submissions to the Pharmaceutical Benefits Advisory Committee will be charged fees, resulting in revenue to offset the additional costs. The cost‑recovery arrangements were previously to commence on 1 July 2007 but this has been delayed until 1 July 2008 resulting in a reduction in the revenue estimate for 2008‑09. Total additional revenue over four years is expected to be $7.0 million, resulting in a net cost of this measure of $2.2 million.
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