20 February 2014.
Comments made yesterday by Federal Health Minister, Peter Dutton MP, about expenditure on the PBS being a growing component of Federal Government Health spending could be misinterpreted.
Government expenditure on the Pharmaceutical Benefits Scheme (PBS) is in decline, according to the Government’s own data.
PBS reforms in 2007, 2010 and 2013 continue to deliver significant savings to the Federal Government.
Facts about PBS expenditure are:
- The Treasury’s December 2013 Mid-Year Economic and Fiscal Outlook shows that expenditure on the PBS in 2013-14 will be $526 million lower than budgeted in May 2013, accruing to $2.7 billion over the next four years;
- The just published Department of Health’s Portfolio Additional Estimates for 2013-14 confirms that PBS spending for the four years to 2016-17 will be almost $4 billion lower than forecast in last May’s Budget. Last May’s Budget forecast savings of $4 billion for the four-year period.
- The January 2014 Productivity Commission Report shows that government expenditure on the PBS in 2012-13 was lower than in the preceding four years, when adjusted for price changes; and
- 2013 PBS data shows government expenditure 9.2 per cent lower than the previous year.
“The savings are a result of successive layers of PBS reforms that continue to provide ongoing savings,” GMiA Chairman, Mark Crotty, said.
“PBS expenditure is in decline, in stark contrast to other areas of health expenditure.”
“No further reform of the PBS is warranted.” ENDS