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A Stable, Sustainable and Strong PBS: Needed now more than ever in a rapidly changing healthcare landscape The Future of Medicare 13 August 2014 Elizabeth De Somer Director, Policy & Advocacy Medicines Australia 1

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Elizabeth de Somer delivered the presentation at the 2014 Future of Medicare Conference. The Future of Medicare Conference was a timely event as the Abbott government debates a full over haul of the Australian healthcare system. This conference presented a chance for government representatives, regulators, health care providers in the public and private sector, educators and private investors to come together and debate the proposed changes to Medicare as well as discuss the best practice methods of implementing new measures and frameworks. For more information about the event, please visit: http://bit.ly/FutureofMedicare2014

TRANSCRIPT

Page 1: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

A Stable, Sustainable and Strong PBS:

Needed now more than ever in a

rapidly changing healthcare landscape

The Future of Medicare

13 August 2014

Elizabeth De Somer

Director, Policy & Advocacy

Medicines Australia

1

Page 2: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

PBS role in healthcare

• The PBS has been a key driver in increasing Australians’ life

expectancy over the past 65 years

2

Page 3: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

The PBS is sustainable

3

• PBS spending fell by 3.5%, or $356M in 2012-13

• Another drop of $537M is estimated for 2013-14

Page 4: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

The PBS is sustainable

4

• PBS spending as a percentage of the Health

budget is in long-term decline

Page 5: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

There have been repeated downward revisions of PBS expenditure over recent years

PBS expenditure in decline

5

The PBS is sustainable

Page 6: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

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• Australia is behind the OECD in medicines spending

Reasons for Reform

Page 7: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

Where Australia ranks

7

Country Innovation profile (NCEs launched vs. Market Share achieved)

EU average 2.3%

NCEs=82

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90

NC

Es (

2008

-12)

Mark

et

Sh

are

of

To

tal R

X m

ark

et

Number of NCEs (2008-12) launched

New Zealand

Australia UK

Switzerland

SwedenSpain

Slovenia

Slovakia

Romania

Portugal

Poland

Netherlands

Luxembourg

LithuaniaLatvia

Italy

Ireland

Hungary

Greece

Germany

France Finland

Estonia

Czech R.

Bulgaria

Belgium

Austria

Norway

EU average n46

Page 8: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

Paths of reform

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Page 9: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

Reasons for Reform

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Source: M Wonder, Development of Industry

Relevant Key Performance Indicators for the

Pharmaceutical Benefits Scheme (2010-2013)

Report prepared for Medicines Australia, May

2014

Page 10: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

Reasons for Reform

10

Source: Cheema, P. 2010 “International variability in the reimbursement of cancer drugs by publically funded drug programs”, Medical Oncology, v. 19, n. 3, http://www.current-oncology.com/index.php/oncology/article/view/946/924 (accessed 4/10/2013 )

International access to cancer medicines

Page 11: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

Reasons for reform

• Australian medicines exports dropped 13.5% last year

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Page 12: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

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Risks facing Australian patients

0

5

10

15

20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Nu

mb

er

of

Med

icin

es lis

ted

in

Au

str

alia

Reimbursed in Aus and NZ Medicines that are reimbursed in Aus but not NZ

Source: PBS (Australia), PHARMAC (NZ)

Additional medicines listed for reimbursement in Australia

vs medicines not reimbursed in NZ

Page 13: Elizabeth de Somer - Medicines Australia - Where does PBS stand in this reforming Australian healthcare landscape?

The right road of reform

• All access proposals on the table and examined properly

• Innovation rewarded and protected

• Red tape reduction

• Health technology assessment processes improved

• Consider options to diversify medicines funding

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