The Budget will be delivered in four weeks and the pharmaceutical sector is "very focussed" on the implications for the PBS.
PharmaDispatch understands Health Minister Sussan Ley has been set what one well-placed Canberra source described as a "very significant savings target" for her first Budget in the portfolio.
It is also understood that the target has been revised up since the Budget process began late last year, and following Ms Ley's appointment as health minister in December.
Frustration inside the health bureaucracy is partly focussed on the role of former departmental secretary, Jane Halton, who as Secretary of the Department of Finance is a key figure in preparation of the Budget.
Development of the Budget is in the context of Ms Ley having to deal with the political failure of key measures announced as part of the Abbott Government's first Budget, including a multi-billion hole left by the Senate's refusal to pass the proposed GP co-payment and changes to PBS co-payments and safety net thresholds.
This is the backdrop to negotiation of the 6th Community Pharmacy Agreement (CPA) and several billion dollars in new medicines awaiting Cabinet consideration.
Ms Ley recently told PharmaDispatch that, in the context of negotiation of the next CPA and the future of the PBS, she wants stakeholders to present "options" and that the Government would consider a second Memorandum of Understanding wth manufacturers.
Bilateral discussions between the Department of Health and stakeholders on the CPA and the future of the PBS are ongoing, with some groups still concerned over the threat of the Budget and the risk of a new round of savings measures.
While groups are not revealing any level of detail on the discussions, including even the fact they are occurring, PharmaDispatch understands that most anticipate the Government will consult in advance of the Budget on any proposed PBS reforms, specifically giving them an opportunity to negotiate.
Yet with only four weeks to go the concern remains that Budget night could include some unpleasant surprises for the pharmaceutical sector.
