Health Minister Sussan Ley says the approach she took to developing the PBS Access and Sustainability Package is the template to achieve reform in other areas of the health system.
Speaking at the National Press Club in Canberra yesterday, My Ley said her 'consultative approach' to policy development, evident during her time as the Minister responsible for child care and early learning or the recently legislated PBS reforms, is the best way to address fiscal pressures on the health system.
In her address, Ms Ley outlined a number of priority areas in health, including private health insurance, aged care, and the recently announced review of the Medicare Benefits Schedule.
According to Ms Ley, "...I would use this consultative approach to make the important – and at times tough – decisions in a fair and considered way.
"I believe this is evidenced best in our delivery of landmark reforms of the Pharmaceutical Benefits Scheme and pharmacy," she said.
"They were reforms we intensely consulted on with all members of the pharmaceutical supply chain every step of the way, rather than just a few select high-profile players.
"Reforms I discussed with my parliamentary colleagues of all persuasions to hear their views and seek their support.
"And, most importantly, reforms we had a conversation with the people of Australia about to ensure they understood what we were doing and why," she added.
The range of substantial reforms to the PBS, announced in late May following months of at times acrimonious negotiations that started in February, achieved widespread support from stakeholders.
The package was complemented by the Sixth Community Pharmacy Agreement, including a new wholesaler CSO, and a five-year strategic agreement with the Generic and Biosimilar Medicines Association.
A letter of intent signed between the Government and Medicines Australia did not eventually result in a strategic agreement for the research-based association.
Ms Ley acknowledged in yesterday's address that the reforms did not receive the unanimous backing of stakeholders, a possible reference to Medicines Australia, or potentially the Pharmacy Guild in relation to the discounted PBS co-payment and even clinicians and patient groups on biosimilars.
"But at the end of the day, we were able to reach a common goal and pass through the parliament a fair, balanced package," she said. "And we did it without parliamentary amendment and the appreciated support of Labor, the Greens and the majority of our cross-bench colleagues when it mattered."
The Minister said the $6 billion savings generated by the reforms will allow the Government to invest in new medicines.
However, during a Q&A, the Minister did not specifically address the question of how the Government will balance the need for spending on new medicines with the Budget requirement that it be offset by savings from within the portfolio. It remains unclear whether the savings generated through the PBS reforms will be allocated as offsets to fund new listings.
