PBS News

PBS Cost Recovery Consultations Are Happening

18 April 2007

The Department of Health and Ageing Discussion Paper on Cost Recovery arrangements for the PBS is currently out with major stakeholder organisations. As was announced in the Budget of 2005-06, the Government intends that cost recovery for the PBS listing process will commence next year. The start date is 1 January 2008. 

The time has arrived to make important decisions about the fees, or other charges (such as levies) to be applied and to set up the arrangements over the second half of 2007. We are seeking the input of interested groups, particularly those parties directly affected by the charging arrangements, about implementation and related policy issues.

The purpose of the consultation is to present the key questions for consideration by the pharmaceutical industry, the Government, and other interested parties, before the next stage of implementation of PBS cost recovery arrangements is progressed. The paper has been informed by the views and questions raised by peak organisations, particularly Medicines Australia (MA), the Generic Medicines Industry Association (GMiA), and the Consumers’ Health Forum (CHF) in earlier discussions. It is now time for wider discussion on a more structured set of ideas.

The discussion paper presents:

•         the facts about cost recovery;

•         a description of the guidelines and principles for cost recovery;

•         the process and legislative requirements set down for introduction of cost recovery;

•         the specific scope of recoverable costs for the PBS listing process;

•         the key questions that the DHA is seeking comments on at this stage;

•         some possible charging options that could be expected to raise the required amount of revenue;

•         an invitation to bring any other outstanding concerns to the Department and Government for consideration.

Responses to the discussion paper will be needed by the end of April. We are expecting that most input will come through the major organisations to which we have sent the paper. They are: Medicines Australia; Generic Medicines Industry Asscoiation; Consumers' Health Forum; Australian Self Medication Industry; Australian Medical Association; National Pharmaceutical Services Association; The Pharmacy Guild of Australia; Pharmaceutical Society of Australia; Society of Hospital Pharmacists.

If you are interested in this process, you can contact Ms Joan Corbett at joan.corbett@health.gov.au or write, marked for her attention, at Pharmaceutical Benefits Division, MDP 83, GPO Box 9848, Canberra ACT 2601. The team can be contacted by phone on (02) 6289 7085 or (02) 6289 4127.