Budgeted PBS savings will reduce spending on the scheme by almost 18 per cent between 2010 and 2018, according to a follow-up PharmaDispatch analysis that has been welcomed by Medicines Australia.
In the eight years to 2018, total PBS spending is expected to just top $75 billion, while budgeted savings will exceed $16.3 billion.
The savings, which include one-off measures and previous PBS reforms such mandatory price reductions and price disclosure, will reduce PBS spending over the eight years to 2018 by 17.9 per cent.
In an initial PharmaDispatch analysis published on Monday, budgeted savings over the same period were shown to exceed the cost of new listing by over $10 billion.
According to Medicines Australia CEO, Tim James, “This important new independent analysis further confirms that the PBS is sustainable with budgeted savings exceeding spending on new medicines by more than $10bn since 2010.
"The analysis shows categorically that PBS reforms are more than delivering on their stated intent to provide the headroom to list new and innovative medicines on the PBS. These reforms, which were conducted in partnership with the industry, have not only delivered savings, but also entrenched mechanisms in the PBS to generate savings well into the future.
"There is now an established body of evidence that shows the PBS is sustainable and delivering major savings to government. It is time now to ensure Australians have rapid access to new medicines,” he said.