PBS wait times a more urgent issue than Donald Trump's potential pharmaceutical tariffs, peak medicines body warns

Excessive wait times for medicines to be listed on the Pharmaceutical Benefits Scheme (PBS) are a much greater threat to the sector than US President Donald Trump's far-reaching tariffs, according to the peak industry body, which has warned people could die waiting for treatment.

The Albanese government is frantically working to shield Australia from Donald Trump's ever-expanding tariffs, with the US president now flagging a possible 250 per cent tariff on pharmaceuticals, one of Australia's largest export products to the US.


"We'll be putting a, initially, small tariff on pharmaceuticals. But in one year … it's going to go to 150 per cent and then it's going to go to 250 per cent because we want pharmaceuticals made in our country," Mr Trump told CNBC on Wednesday local time.

But Medicines Australia CEO Liz de Somer said a more pressing concern was the process behind listing new medicines on the PBS, with a median wait time of 22 months for a new medicine to land on the scheme once it is approved by the Therapeutic Goods Administration (TGA).


1754532094542.png
It takes a median time of 22 months for a medicine to appear on the Pharmaceutical Benefits Scheme after it has been approved by the regulator. (Pixabay)


"Patients will die waiting for new medicines to be listed," she said.

"And this will have a far greater effect on the Australian system than anything else."

When drugs are placed on the PBS, patients are able to receive important and sometimes lifesaving medicines at a small portion of the cost — currently just over $30. The rest of the cost is covered by the federal government.


But patients, advocacy groups and pharmaceutical companies argue the process leading up to the PBS listing is overly complex, takes too long and involves excessive red tape.

The first complete review of the system in 30 years was handed to the federal government last year, making a raft of recommendations to streamline processes so people could access medicines earlier.

The recommendations included expanding access to medicines already subsidised for common cancers to other cancers, when that is backed by evidence.


1754532199699.png
CEO of Medicines Australia, Liz de Somer, said patients could die waiting for drugs to be added to the PBS. (Supplied: UNSW Media


The review also concluded that if pharmaceutical companies applied to have their medications approved by the TGA and placed on the PBS at the same time, 90 per cent of promising new medicines could be listed within six months of TGA registration.

Federal Health Minister Mark Butler heralded the Health Technology Assessment (HTA) review as "visionary" but has yet to formally respond to its findings, instead setting up an advisory group to help guide the government's next steps.


Rare Cancers Australia CEO Christine Cockburn said urgent action was required, with many people unable to afford lifesaving medication that can cost hundreds of thousands of dollars.

"They sometimes access superannuation, which of course that is not what superannuation is for, or they remortgage their houses.

"Crowdfunding is not uncommon in cancer treatment spaces, which of course comes with a terrible loss of dignity. It's a terrible thing to have to do, and there are people as well who just have to go without because they can't do any of those things."

PBS 'egregious and discriminatory': US pharmaceutical companies

The time it takes to list medications on the PBS is a long-held gripe of US pharmaceutical companies.


They also argue the scheme's pricing policies undervalue American innovation and threaten billions of dollars in lost sales.

In March, American medical giants pressed Donald Trump to target Australia with punitive tariffs, labelling the PBS as one of the "egregious and discriminatory" programs that undermines US exports.


1754532235866.png
Health Minister Mark Butler said the government was working through the recommendations of the HTA review. (ABC News: Ian Cutmore)


Labor has already categorically ruled out touching the PBS in any trade negotiations, and a raft of frontbenchers have consistently stressed the Trump administration could not exert any direct influence on the scheme.

But the government remains concerned that frustrations over the PBS could see the Trump administration retaliate by hitting Australian pharmaceutical exports.

Last year, Australia exported $2.2 billion in pharmaceutical products to the US — about 40 per cent of Australia's pharmaceutical exports — according to the UN's Comtrade database.


Ms de Somer said the government could better negotiate with the US, while still protecting the PBS, if it followed recommendations from the review.

"If the government committed to implement the reforms of the PBS that they have already identified need to happen, it would go some way to assuage the concerns raised by Donald Trump and the US pharmaceutical industry," she said.

"Partly, it is about the time it takes for patients to get access to new medicines, and partly it is about valuing innovation and giving the right value to things that are new and transformative and change people's lives."

Reform won't be simple: Former PBAC chair​

Former chair of the Pharmaceutical Benefits Advisory Committee (PBAC), which recommends medicines for the PBS, and chair of the review's implementation advisory group, Andrew Wilson, said the complexities of the system made it difficult to reform.

"I don't think there's anybody involved in this process that doesn't want to see this happen faster," Professor Wilson said.

"One of the challenges that we've had in the past is not that things haven't changed, but they've changed in a piecemeal fashion. They've changed little bits here and not there and the concern has been the extent to which those changes have actually improved the system, or just made it more complicated."


However, Shadow Health Minister Anne Ruston accused the government of dragging its feet in its response to the review.

"We're sitting here now nearly 12 months after the review has been delivered to government and we have absolutely nothing more from the government," she said.

"It's completely unacceptable because Australians are missing out on a much speedier process to get them access to life-saving and life-changing drugs. And that's just not good enough."

Mr Butler said the implementation advisory group's final report was due early next year, and would help inform future government decisions on reform.

"The Albanese government is continuing to make medicines available to Australian patients faster and cheaper," he said.

"We know patients want faster access to cutting-edge medicine and treatments.

"That's why our government is working through the recommendations of the HTA review, so Australians can get faster access to the best medicines and therapies, at a cost that patients and the community can afford."

By national health reporter Stephanie Dalzell
 

Seniors Discount Club

Sponsored content

Info
Loading data . . .
America already pay some of the highest costs in the world for pharmaceuticals and their very smart President is planning to make them even more expensive.
It is the importer in America that pays the tariff, not the country importing it.The importer then passes those costs onto the consumer.
Yes, it causes problems for the country exporting the products, due to loss of sales. But, it has an even worse effect on the American public, many of whom already can't afford medications.
It would take a long time for manufacturers to set up to manufacture in USA.
So what happens to the citizens in the meantime. I guess they just get sicker and possibly die.
Such a clever business man their President. No wonder he's been bankrupted so many times.
 
Let us remember the 2 main rules in Politics:
1. Make sure your policies ensure you get elected.
2. For all other decisions, refer first to Rule 1.

No politician orders a review in order to change anything. They do it to defer difficult questions/issues, so that the fire & anger wear away with time, all the while deflecting questions & criticism with a "we're waiting for the outcome of a Review" statement. And they get to dictate the rules of the Review in order to get the answer(s) they want or get a suggestion to make further studies/review. Rules such as only looking at outcomes which are cost-neutral, or require no new funding are standard.

In this specific case, they could make PBS approvals quite quickly, even back at the TGA approval stage, but that would result in costs being brought forwards compared to the status quo, so many a review has been started (not all reaching conclusion before the committee is quietly dissolved), but no side has ever proceeded with any actual change. They need revenue for re-election purposes (refer to Rule 1!).

The only real politicians who make genuine noise about speeding up PBS approvals are independents & minor party members who have no actual prospect of holding a decision-making, ministerial position. Who knows what they'd really do? Probably refer back to Rule 1 & order another "Review"...?
 
is this a gotcha for albo. he has shown his distain for President Trump too many times.?????
 
is this a gotcha for albo. he has shown his distain for President Trump too many times.?????
Who can blame him. The man is an imbecile. Trump treats everybody with disdsin himself, pity more people don't treat him the same way.
 
The Americans want it all their own way I understand how costly life saving drugs are in that country. But why tackle Australia, why not go after the drug companies, they are the ones making an absolute fortune . The people running these organisations are GRUBS to say the least
 
  • Like
Reactions: Leenie and PattiB
I don’t blame Albenese either my little tibbies. Just the sight of Trump on the news or elsewhere makes me want to 🤮. If he can put the tariff up to 250% like he claims he is going to do we will be done for. The elderly on pensions will not be able to afford medication so that will get rid of us quickly.
 
The Americans want it all their own way I understand how costly life saving drugs are in that country. But why tackle Australia, why not go after the drug companies, they are the ones making an absolute fortune . The people running these organisations are GRUBS to say the least
It is the Australian pharmaceutical companies they are going after
We have very cheap medications in our country compared to the USA.
Tariffs put on our pharmaceutical companies will have devastating effects on the cost we will pay for medications as the USA is the biggest importer of our medications.
If they put further tariffs on, then people in the US will just stop buying them.
In turn, the pharma companies in Austrslia will not survive the loss of their biggest client base and will cease operating in Australia

This will force us , in turn, to import from elsewhere considerably raising the prices we will pay here in Austrslia.
 
I don’t blame Albenese either my little tibbies. Just the sight of Trump on the news or elsewhere makes me want to 🤮. If he can put the tariff up to 250% like he claims he is going to do we will be done for. The elderly on pensions will not be able to afford medication so that will get rid of us quickly.
Yes, most people don't realise how badly this would effect us.
 
  • Like
Reactions: Leenie and PattiB
America already pay some of the highest costs in the world for pharmaceuticals and their very smart President is planning to make them even more expensive.
It is the importer in America that pays the tariff, not the country importing it.The importer then passes those costs onto the consumer.
Yes, it causes problems for the country exporting the products, due to loss of sales. But, it has an even worse effect on the American public, many of whom already can't afford medications.
It would take a long time for manufacturers to set up to manufacture in USA.
So what happens to the citizens in the meantime. I guess they just get sicker and possibly die.
Such a clever business man their President. No wonder he's been bankrupted so many times.
Yes, Trump really knows how the tariffs work, doesn't he?! He does not seem to comprehend tariffs are an import tax paid by the importer of goods into the country, and passed on to the consumer. Moron, imbecile and nutcase. A great businessman who bankrupted so many businesses, and now bringing America to its knees. Glad my American-born father isn't here to see what that orange monster has done to his birth country.
 
What about the unavailability of medicines at the moment e.g. pain meds and others. I am just trying to see If I can justify to pay a small fortune on an age pension to get one of my meds by pfizer which is unavailable until heaven knows when, from the UK. I don't know whether it is the drug company faults or whose. It is just hitting the little guy. Yes we definitely need newer medications for cancer and other killers but the general population needs to get their medications as well. Just a thought. I won't bring Trump into this.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

Latest Articles

  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×