‘We won’t be negotiating’: Government defends PBS

The Federal Government has once again defended Australia’s Pharmaceutical Benefits Scheme (PBS) amid warnings from the United States that pharmaceutical tariffs could be on the way.
 
It comes after the US President said the tariffs could begin rolling out by the end of the month.
 
‘We’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,’ President Donald Trump said.
 
However, on Monday, Federal Health and Ageing Minister Mark Butler confirmed ‘we won’t be negotiating about our PBS’.
 
‘It’s no surprise that big pharma wants higher prices, because that means bigger profits, but our position is absolutely rock solid – we will not be negotiating around that,’ he told ABC Radio National.
 
The RACGP has backed the Federal Government’s defence of the PBS, with college President Dr Michael Wright praising its staunch defence of the program.
 
‘As GPs, we know our patients can’t and shouldn’t pay the price of US-style healthcare,’ he said.
 
‘The power of the PBS to deliver affordable medicines cannot be up for negotiation … the Prime Minister and Treasurer are right to back it in the face of pressure from overseas interests.
 
‘Australia is a small piece in the global market for medicines, but the PBS means we speak with a powerful voice. Medicare and the PBS both must be strong to deliver affordable healthcare.’
 
The tariff warning comes just months after the Federal Government announced it will make PBS medicines even cheaper, slashing maximum co-payments from $31.60 to $25 from 2026.
 
Any changes to the PBS would have significant impacts on millions of Australian patients and their GPs, with, as of 30 June 2024, 930 different medicines listed, spread across 5164 brands.
 
The annual government expenditure for the supply of medicines over this period was $17.7 billion, with 226.5 million subsidised prescriptions dispensed.
 
On Monday, four new medications were listed or expanded on the PBS – Livtencity, Kisqali, Tibsovo, and Opdivo – saving patients hundreds of thousands of dollars each year.

The listing of Kisqali alone, which has been expanded to treat patients with early stage breast cancer, will bring the cost of the medication down from its current rate of $139,000 per course of treatment.
 
Speaking from the G20 meeting in South Africa, Federal Treasurer Jim Chalmers described the PBS as a crucial part of Australia’s policy architecture and something he is ‘very proud of’.
 
‘We’ve made it really clear that we’re not prepared to negotiate or diminish or weaken the PBS in order to get a deal. We’ve been clear about that from the beginning,’ he told Bloomberg TV.
 
‘We’re working through the potential consequences of pharmaceuticals being caught up in these escalating trade tensions.
 
‘We do have quite a substantial export offering into the US when it comes to pharmaceuticals, but how this potential tariff might work, we’re working through with the industry and with the administration.’
 
Dr Wright said the PBS allows GPs to prescribe the treatments their patients need and know they will be able to access them at an affordable price.
 
‘The PBS, along with affordable access to high-quality specialist general practice care, is a crucial part of the Australian health system and critical in ensuring everyone has affordable access to the care they need,’ he said.
 
‘Healthcare is a fundamental right, and we should all be steadfast in our support for the PBS.’
 
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Mark Butler PBS Pharmaceutical Benefits Scheme tariffs