PBS must be protected from U.S. Free Trade intervention - AMA
AMA President, Dr Bill Glasson, today urged the Federal Government to reject outright suggestions that Australia's Pharmaceutical Benefits Scheme (PBS) would be 'rejigged' during US-Australia Free Trade Agreement (FTA) talks to satisfy US drug companies.
The United States Under Secretary of Commerce, Grant Aldonas, is quoted in The Australian Financial Review as saying the US wanted to 'clean up' the PBS...because it believed that the PBS "undercut" the patent rights of US drug companies such as Pfizer.'
Dr Glasson said Mr Aldonas's remarks are a challenge to Trade Minister Mark Vaile's 'guarantees' that the FTA negotiations do not impair Australia's ability to deliver fundamental objectives in health care.
"The Government's guarantees apply only to the subsidy payments for PBS-listed medicines, but do not rule out changes to the cost of medicines under the PBS," Dr Glasson said.
"The AMA is extremely concerned that a projected blow-out of at least $1 billion to the annual cost of the PBS would affect the viability of the PBS.
"This blow-out would occur if Australia's reference pricing system for new drugs was affected by the FTA.
"The PBS is already under cost pressures. The proposed changes would undermine the current ability of the PBS to negotiate lower prices for pharmaceuticals for Australian patients than apply in the US. The PBS's reference pricing system, whereby Australia negotiates the price at which it purchases new drugs from pharmaceutical companies, must not be threatened.
"It is unacceptable that US drug companies be allowed to influence trade policy in ways that would ultimately have a negative effect on Australian patients.
"The PBS is an internationally admired system that ensures the best possible health outcomes for the poorest and the sickest in our community.
"The PBS should not even be on the agenda for these trade negotiations, let alone 'up for grabs'.
"For over half a century, the PBS has helped ensure that Australians have health outcomes among the best in the world. Our investment in the PBS pays huge dividends in terms of a healthier Australia," Dr Glasson said.
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