The PBS Access and Sustainability Package
BACKGROUND
In parallel with the negotiation of the Sixth Community Pharmacy Agreement
(6CPA), the Government is implementing a wider PBS Access and Sustainability
Package. This wider Package seeks to balance the need to ensure that consumers
have access to new and innovative PBS medicines at affordable prices, while
promoting and improving the quality use of medicines and ensuring that the PBS
remains cost-effective and sustainable.
WHAT DOES THE WIDER PACKAGE INCLUDE?
The 6CPA is part of the wider Package, which also includes a range of savings that
will fund the increased investment in the sector and the PBS generally, while also
delivering net savings to the Government’s budget bottom line. The measures in the
wider Package include:
• Substitution of biosimilar medicines at the pharmacy level
• Freezing of the indexation of the CSO
• Increase in number of time a year that PBS medicines can change price
• De-listing of certain OTC medicines on the recommendation of the PBAC
• Expansion of the Safety Net 20 Day Rule
• Refocusing the PFDI on medicines where there is a brand price premium
• Application of price disclosure to generic combination medicines
• One-off 5% price reduction to F1 medicines after five years
• Removal of originator brands from price disclosure calculations
• Transfer of the National Diabetes Services Scheme to the wholesalers CSO
• Optional discounting of co-payments by pharmacies to a maximum of $1
The wider Package also includes the extension of the Location Rules to mid-2020.
6CPA Factsheet - The PBS Access and Sustainability Package
v.1 26 May 2015
WHAT IS THE GUILD’S POSITION ON THE WIDER PACKAGE?
The Guild recognises that the wider Package is necessary to finance the increased
investment in the sector and the PBS generally. The Guild will provide all
reasonable assistance to facilitate and support the measures in the wider Package,
with the exception of the proposed $1 discounted co-payment, which is a matter for
the Government.
WHAT ARE THE NEXT STEPS?
A number of the measures in the wider Package, including the extension of the
Location Rules, require legislative changes which the Government is seeking
to pass through the Australian Parliament before 30 June. Other measures are
being done by agreement with the affected parties or can be implemented under
existing legislative arrangements. Assuming that the legislation passes, the 6CPA
will commence on1 July 2015 and the 6CPA remuneration and funding will be made
available from that date onwards as agreed.
WHAT HAPPENS IF THE LEGISLATION DOES NOT PASS?
The Government has made clear that the commencement of the 6CPA and the
benefits for community pharmacies contained in it are contingent upon the passage
of the legislation to implement the wider Package. If, by 25 June, the Government
and the Guild consider that the legislation is unlikely to pass before 30 June, the
parties will reconvene to consider the arrangements that will apply after 30 June
when the 5CPA expires.
6CPA Factsheet - The PBS Access and Sustainability Package
v.1 26 May 2015