Exploring the implications of a fixed budget for new medicines: a study of reimbursement of new medicines in Australia and New Zealand.

Conclusion The discrepancy in the number of new medicines listed in New Zealand compared with Australia raises questions regarding the consequences of implementing a capped budget for new medicines. However, further research is needed to understand the relationship between listing outcomes, access to medicines and health benefits for the community. What is known about this topic? Due to factors such as an aging population and longer life expectancy, total government health expenditure as a proportion of gross domestic product (GDP) is expected to rise. Consequently, many commentators have suggested current expenditure patterns are unsustainable. The PBS represents a significant expense to the government and recent reports suggest the PBS should be reformed to align with New Zealand's PHARMAC model, where an independent entity manages access to subsidised medicines under a capped budget. However, little information exists regarding access indices for new medicines in New Zealand compared with Australia. What does this paper add? This paper builds on previously published research comparing listing outcomes for new medicines in Australia and New Zealand. The results highlight a discrepancy in listing new medicines in New Zealand compared with Australia that has not improved in recent years. Consequently, the results question the notion that a capped budget for new medicines is a good policy choice for Australia. What are the implications for practitioners? This paper reviews the...
Source: Australian Health Review - Category: Hospital Management Authors: Tags: Aust Health Rev Source Type: research