Post by Banker on Feb 8, 2012 7:43:52 GMT 7
PENSIONERS would pay less for generic medicines covered by the nation's medicine subsidy scheme under a plan that could save the government $500 million a year.
The Generic Medicines Industry Association has proposed the incentives to the government in a budget submission and says encouraging people to switch from expensive brand name drugs to cheaper generics will save consumers and taxpayers money.
The medicines industry fears the government is poised to implement further cuts on the Pharmaceutical Benefits Scheme as it struggles to deliver a surplus in the 2012-13 budget.
GMIA chairman Martin Cross said the industry was still reeling from billions of dollars in cuts imposed in previous budgets and needed some stability.
The nation's leading manufacturing export industry suffered a 6 per cent decline in exports last year.
"There are serious risks if we keep pushing the industry," he said.
In the longer term he said the government could save hundreds of millions of dollars if it could lift the proportion of Australians using generic drugs.
GMIA is proposing that the government reduce the $5.80 charge pensioners pay when they purchase generic medicines under the PBS to encourage them to switch to the cheaper drugs.
In the US 78 per cent of medicines dispensed are generic, but in Australia generics are used by only 36 per cent of patients.
If Australia could lift its consumption of generic medicines to 100 per cent it would save the PBS $500 million a year, he said.
goo.gl/gTDDQ
The Generic Medicines Industry Association has proposed the incentives to the government in a budget submission and says encouraging people to switch from expensive brand name drugs to cheaper generics will save consumers and taxpayers money.
The medicines industry fears the government is poised to implement further cuts on the Pharmaceutical Benefits Scheme as it struggles to deliver a surplus in the 2012-13 budget.
GMIA chairman Martin Cross said the industry was still reeling from billions of dollars in cuts imposed in previous budgets and needed some stability.
The nation's leading manufacturing export industry suffered a 6 per cent decline in exports last year.
"There are serious risks if we keep pushing the industry," he said.
In the longer term he said the government could save hundreds of millions of dollars if it could lift the proportion of Australians using generic drugs.
GMIA is proposing that the government reduce the $5.80 charge pensioners pay when they purchase generic medicines under the PBS to encourage them to switch to the cheaper drugs.
In the US 78 per cent of medicines dispensed are generic, but in Australia generics are used by only 36 per cent of patients.
If Australia could lift its consumption of generic medicines to 100 per cent it would save the PBS $500 million a year, he said.
goo.gl/gTDDQ
