Consumers benefit from price disclosure

20 March, 2014

reference : http://www.guild.org.au/docs/default-source/public-documents/news-and-events/media-releases/2014/mr_price_cuts_20march2014.pdf?sfvrsn=0

Australian consumers and taxpayers are the winners in the latest round of Pharmaceutical Benefits

Scheme price

cuts to take effect from 1 April.

The new price reductions affecting 121 medicines flow from the price disclosure mechanism

which was originally introduced into the PBS pricing system in 2007, with the

support of

the

Pharmacy Guild

. It

has since been acce

lerated twice

through measures determined independently

of the Guild and community pharmacies

The price disclosure arrangements ensure that the price paid by the

Government

for medicines on

the PBS is brought into line with the market price

through a mon

itoring process. This process has

delivered significant savings to the Commonwealth Budget, to taxpayers, and directly to

consumers.

Unfortunately, a report in several News Limited newspapers this morning misrepresented the role

of pharmacists in the pro

cess, incorrectly clai

ming that the price cuts were

a result of the

Government stopping “overpayments” to pharmacies.

This is an unfair slur

on hard

–

working pharmacists who continue to provide PBS medicines at the

best possible price to patients within a

system in which they have no control over the PBS price

–

which is determined by Government.

The vast majority of prescriptions dispensed under the PBS

are directly subsidised and therefore the price

to the consumer (the co

–

payment)

is identical no

matter

which PBS approved pharmacy supplies the prescription.

As a result of the

further accelerated

price disclosure arrangements

coming into effect next

financial year

many

pharmacies

will have

to reduc

staff and costs as much as possible to remain

viable. It is blatantly unfair that the reputation of these caring health professionals

should be

damaged by false assertions that they have somehow been “overpaid” by Government, when in

fact they have been

–

operating with the price disclosure price cuts and have no capacity

whatsoever to vary PBS prices.

The 1 April price cuts are further evidence that Australian health care consumers continue to be

very well served by the PBS and by the network of 5300

community pharmacies.