The fourth Intergenerational Report reaffirms the sustainability of the PBS, says Medicines Australia.
Its CEO, Tim James, welcomed the release of the 2015 report, and says it acknowledges that growth in pharmaceutical expenditure will remain stable, growing only modestly to 2027–28.
“The 2015 Intergenerational Report joins a growing body of evidence that demonstrates the sustainability of the expenditure on medicines through the PBS,” James says.
“The 2015 IGR supports the fact that successive reforms to the PBS have put the PBS on a stable footing, by showing that strong growth of the PBS predicated in previous IGRs will not eventuate.”
The IGR showed that expenditure on pharmaceuticals is expected to grow from $420 per person in 2014–15 to $474 per person in 2027–28 (in today’s dollars).
“This is a major downward revision from the 2010 IGR,” says James.
The IGR showed that the overall health budget is expected to grow from 4.2% in 2014–15 to 5.5% of GDP in 2054–55. The report finds that Medicare services are projected to be the fastest growing component of health expenditure to 2027– 28.
“Medicines are central to achieving better health outcomes for the population. The flow on effects are increased participation and productivity, by people returning to work earlier and using medicines to avoid more costly and invasive treatments later on,” says James.