‘Not for sale’: Australia defends PBS against US big pharma

Political leaders have vowed to strongly defend the Pharmaceutical Benefits Scheme (PBS) against threats from big pharma in the United States, amid claims from abroad that the process ‘systematically devalues US medicine’.
 
It comes after the release of a submission to the US Government from Pharmaceutical Research and Manufacturers of America (PhRMA), which, according to news reports, takes aim at the PBS.
 
This has led to concerns President Donald Trump could eye Australia as part of ‘reciprocal’ tariffs being imposed globally.
 
The threat to Australia’s subsidised medicines scheme comes as the Federal Government pledges to make PBS medicines more affordable, slashing maximum co-payments from $31.60 to $25 and saving patients more than $200 million each year.
 
Four out of five PBS medicines will become cheaper as part of a $689 million investment to be introduced in January under a re-elected Labor Government.
 
The Coalition has also committed to upholding the plan if it wins power in the upcoming Federal Election.
 
Welcoming this plan, RACGP Specific Interests Poverty and Health Chair Dr Tim Senior said a reduction in the cost of PBS medicines will help all Australians, especially those facing financial hardship and cost-of-living pressures.
 
‘We know that some people choose between several different medications because the cost they face is for each prescription – it means they may take some, but not all of their prescribed medications due to cost,’ he told newsGP.
 
‘They may choose to borrow money, forgo food or forgo medications for a short period of time in order to afford them.
 
‘Any reduction in that co-payment for patients is really welcome.’
 
However, at the same time as the Government moves to increase affordable access to medicines, it has been forced to defend the PBS itself against PhRMA claims that the scheme disadvantages US drug companies.
 
But key political leaders are holding strong against US influence, with Prime Minister Anthony Albanese saying the PBS is ‘not for sale’.
 
Federal Health and Aged Care Minister Mark Butler added that the PBS is non-negotiable.
 
‘Obviously, their interest is in selling their medicines at top dollar. Our interest is in making medicines cheaper for Australian patients. There’s obviously a tension there,’ he told the ABC.
 
‘We’ve just got to make it absolutely crystal clear as a Government that we will not negotiate over the PBS. We will not negotiate over cheaper medicines.
 
‘This is utterly central not just to people’s household budgets, but … to a well-functioning healthcare system.’
 
However, Australia may face a bigger hurdle with the US if it’s forced to battle over tariffs.
 
‘We’re continuing to make the case in the US through Ambassador Rudd, but through our ministers and officials as well, that it’s in no one’s interest to start putting on tariffs on pharmaceutical trade,’ Mr Butler said.
 
‘We export a couple of billion dollars of pharmaceuticals to the US every year, but they export $3.5 billion to us. We’re both benefiting from free trade. And really, we’re just continuing to make the case that tariffs should not be considered in this area as in other areas of the economy.’
 
Shadow Health Minister Anne Ruston agreed the PBS needs to be protected.
 
‘You can be assured we do not support President Trump’s tariffs, and we would not support any proposals that would increase healthcare costs for consumers and the Australian taxpayer,’ she said.
 
‘And we will continue to protect Australians’ access to affordable medicines through the PBS, including making sure [they] are getting earlier access.’
 
The strong reaction from political leaders shows just how important the PBS is in Australia’s health system, Dr Senior said.
 
‘The PBS is very highly regarded by the Australian people,’ he told newsGP.
 
‘The reaction by both sides of politics in immediately leaping to the defense of the PBS says what an important and well-liked part of the health system it is.’
 
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