Corrs In Brief: The Government is positioning the Pharmaceutical Benefits Scheme (PBS) for the future – how does it affect you?

07 June 2007

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Proposed reforms to the PBS, as specified in the National Health Amendment (Pharmaceutical Benefits Scheme) Bill 2007 (Cth) (the Bill), focus on ensuring the Government pays what it considers ‘better prices’ for multiple brand medicines (which are mostly, off-patent, generic drugs). If passed, the Bill will change the way the Government prices PBS listed drugs that are considered to operate in a ‘competitive market’.

The Bill proposes dividing PBS listed medicines into ‘single branded’ and ‘multiple brand’ medicines from 1 August 2007. Prices of ‘multiple brand’ medicines will be specifically reduced from 1 August 2008. Price disclosure requirements, similar to those imposed in the US and the UK, will also be imposed concerning ‘multiple brand’ medicines starting from 1 August 2007. Product supply obligations also are imposed on suppliers.

During this In Brief, Partner Conway Restom examines the main changes (initially announced by Health Minister Tony Abbott in November 2006) introduced to the House of Representatives on Thursday 24 May 2007.

For a full copy of this document, please download the attached PDF using the link on the right.

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