The impact of the PBS reform

• Department of Health and Ageing

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12 February 2010This report details the impact of the various aspects of the 2007 reforms reforms to the Pharmaceutical Benefits Scheme, which significantly restructured PBS pricing arrangements, including the impact on government expenditure, consumers, industry, pharmacy, wholesalers and prescribers. The report also considers the possible future impact of PBS reform.

The reforms to the PBS have been progressively implemented since the middle of 2007, with some components yet to take full effect. The indications are that the overall impact on patients has been positive and a modest reduction in government expenditure on the PBS has occurred. The impact of the reforms on different parts of the supply chain is difficult to determine.

Long-term forecasting is difficult and relies heavily on a range of assumptions, the validity of which will not be known for several years. While the indications for significant savings from the reforms into the future are very positive, for the reasons outlined, the Government views these figures with cautious optimism.

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