Health and Ageing
Pharmaceutical Benefits Scheme — deletion of calcium tablet preparations
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | -4.1 | -8.9 | -9.0 | -9.4 |
| Department of Veterans’ Affairs | -0.5 | -1.0 | -1.1 | -1.3 |
| Health Insurance Commission | -0.1 | -0.1 | -0.1 | -0.2 |
| Total | -4.7 | -10.1 | -10.3 | -10.8 |
From 1 December 2005, calcium tablet preparations will no longer be subsidised under the Pharmaceutical Benefits Scheme. Patients will still be able to purchase calcium tablets over-the-counter at a cost of approximately $2 per week. This measure is expected to lead to savings of $35.9 million over four years.
Pharmaceutical Benefits Scheme — increase concessional and general safety net thresholds
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | -1.4 | -20.0 | -42.8 | -67.1 |
| Department of Veterans’ Affairs | -0.3 | -1.5 | -2.8 | -4.3 |
| Health Insurance Commission | 0.0 | 0.0 | 0.0 | 0.0 |
| Total | -1.7 | -21.5 | -45.6 | -71.4 |
The Government will increase the Pharmaceutical Benefits Scheme (PBS) safety net thresholds for both concessional and general patients. For concessional patients, the safety net threshold will increase from 1 January 2006 from 52 prescriptions to 54 prescriptions, with further increases of two prescriptions occurring each year up to and including 1 January 2009. For general patients, the safety net threshold will increase from the current level of $874.90 by the dollar equivalent of two co-payments each year from 1 January 2006 until 1 January 2009. These increases will be on top of the existing annual indexation of the safety net thresholds by the Consumer Price Index. This measure is expected to lead to savings of $140.2 million over four years, helping to maintain the sustainability of the PBS.
Pharmaceutical Benefits Scheme — information campaign to improve community understanding of generic medicines
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | - | - | - | - |
The Government will promote community understanding of the safety, quality and efficacy of generic medicines through an information campaign. The National Prescribing Service, an independent non-profit company funded by the Government to provide information about Pharmaceutical Benefits Scheme medicines, will develop and implement the campaign.
The cost of this measure is being offset within the existing resourcing of the Department of Health and Ageing.
Pharmaceutical Benefits Scheme — mandating price lists in pharmacies
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | - | - | - | - |
The Government will help ensure that consumers have better information about prices of generic and non-generic medicines by requiring pharmacists to display, or have available on request, a list of Pharmaceutical Benefits Scheme medicines supplied by the pharmacy along with the price of each medicine.
The cost to the Department of Health and Ageing of administering this measure will be met from within the department’s existing resourcing.
Pharmaceutical Benefits Scheme — price reduction for new brand listings
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | -129.1 | -251.6 | -276.8 | -302.1 |
| Department of Veterans’ Affairs | -10.3 | -20.2 | -22.2 | -24.2 |
| Total | -139.4 | -271.8 | -299.0 | -326.3 |
| Related capital ($m) | ||||
| Department of Health and Ageing | 0.2 | - | - | - |
The Government will require a price reduction of at least 12.5 per cent when the first new brand of an existing listed medicine is added to the Pharmaceutical Benefits Scheme (PBS). Flow-on price reductions will apply to other brands of the same medicine and products in related price reference groups. The price reduction will apply for listings after 1 April 2005 and will occur only once within any related group of drugs.
The measure supports affordability of the PBS by reducing the cost to government of subsidised medicines. Savings are estimated to be $1.0 billion over five years (which are net of amounts to implement the measure, including $0.3 million in increased expense and $0.1 million in increased capital in 2004-05).
This measure was announced on 1 October 2004 as part of the Government’s election commitment, Recognising Senior Australians — Their Needs and Their Carers.
Pharmaceutical Benefits Scheme — reinforcing safety net arrangements
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Health Insurance Commission | 0.9 | 0.2 | 0.1 | 0.1 |
| Department of Veterans’ Affairs | -0.2 | -1.9 | -1.9 | -1.9 |
| Department of Health and Ageing | -3.7 | -20.1 | -20.6 | -21.1 |
| Total | -3.1 | -21.9 | -22.4 | -22.9 |
| Related capital ($m) | ||||
| Health Insurance Commission | 0.1 | - | - | - |
From 1 January 2006, most prescriptions dispensed to a patient within 20 days of the patient last being provided with the same medicine will not count towards the Pharmaceutical Benefits Scheme safety net. Patients already on the safety net will not be eligible for a lower co-payment (zero cost for concessional patients and $4.60 for general patients) if the prescription is dispensed within 20 days of the last dispensing of that medicine. This measure will not affect repeat prescriptions for medicines that require re-supply within 20 days.
Under current arrangements, patients are not able to obtain repeat supplies of certain medicines within 20 days of the previous supply except where allowed under the ‘immediate supply’ provisions. There is evidence to suggest that some patients are using this method to obtain extra supplies of medication in order to reach the Safety Net sooner or to obtain supplies at lower or no co-payments once they reach the Safety Net. This measure removes the financial incentive for patients to use immediate supply arrangements to obtain supplies in excess of their needs.
This measure is expected to lead to savings of $70.1 million over four years, and will help to ensure responsible use of medicines as well as contributing to the sustainability of the Pharmaceutical Benefits Scheme.
Pharmaceutical Benefits Scheme Community Awareness Campaign — cessation
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | -0.1 | -7.0 | -7.1 | -7.3 |
The Government will cease funding for the Pharmaceutical Benefits Scheme Community Awareness Campaign, resulting in savings of $21.4 million over four years. The success of the campaign during 2003 means that the second phase of the campaign is unnecessary. Funding for the provision of information to doctors and consumers on new Pharmaceutical Benefits Scheme listings will continue.
Pharmaceutical Benefits Scheme drugs listings — cost effectiveness reviews
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 1.2 | 0.9 | 0.3 | 0.0 |
The Government will provide $2.5 million over four years for the Department of Health and Ageing to undertake cost effectiveness reviews of drug groups listed on the Pharmaceutical Benefits Scheme. The Pharmaceutical Benefits Advisory Committee will consider the outcomes of the reviews and will recommend any necessary changes to Pharmaceutical Benefits Scheme listings.
Plasma fractionation arrangements — review
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 2.1 | 0.7 | - | - |
| National Blood Authority | 0.1 | .. | - | - |
| Total | 2.3 | 0.7 | - | - |
The Government will provide $3.0 million over two years to fund a review of Australia’s plasma fractionation arrangements, which will be completed by 1 January 2007. Plasma fractionation is separation of plasma into its constituent proteins.
The review is a requirement of the Australia-United States Free Trade Agreement and will examine whether, in the future, suppliers of fractionation services should be selected through a competitive tender process.
Private Health Insurance — increased funding for the Private Health Insurance Ombudsman through an increase in the Complaints Levy
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Private Health Insurance Ombudsman | 0.2 | 0.2 | 0.2 | 0.2 |
| Related revenue ($m) | ||||
| Private Health Insurance Ombudsman | 0.2 | 0.2 | 0.2 | 0.2 |
The Government will provide $0.8 million over four years to enable the Private Health Insurance Ombudsman to undertake additional activities required under the Health Legislation Amendment (Private Health Insurance Reform) Act 2004. In particular, the funding increase will be used by the Ombudsman to publish the annual State of the Health Funds report, and apply the broader powers to investigate complaints and resolve disputes afforded to the Ombudsman under the Act.
This funding will be provided through an increase in the Private Health Insurance complaints levy paid by private health insurance funds under the Private Health Insurance Complaints Levy Act 1995.
Quality Use of Medicines programme
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | -5.0 | -4.5 | -3.7 | -3.2 |
| Department of Veterans’ Affairs | -1.4 | -1.5 | -1.2 | -1.1 |
| Total | -6.4 | -5.9 | -4.8 | -4.3 |
The Government will achieve savings of $66.1 million over four years by continuing and expanding the Quality Use of Medicines programme. The National Prescribing Service conducts education programmes to inform medical professionals and consumers on ways to reduce inappropriate or wasteful use of medicines listed on the Pharmaceutical Benefits Scheme. The National Prescribing Service also runs the National Medicines Disposal Programme which improves health outcomes by collecting unused and expired medicines and disposing of them in an environmentally friendly manner.
Estimated net savings of $44.6 million over four years have already been included in the forward estimates. Extending the programme is expected to result in additional net savings of $21.5 million over four years.
Radiofrequency Electromagnetic Energy Programme — maintain funding
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | -0.2 | -0.2 | -0.2 | -0.2 |
| Australian Radiation Protection and Nuclear Safety Agency | -0.1 | -0.1 | -0.1 | -0.1 |
| Total | -0.2 | -0.2 | -0.2 | -0.3 |
| Related revenue ($m) | ||||
| Australian Communications Authority | -0.2 | -0.2 | -0.2 | -0.2 |
The Government will provide $4.0 million over four years to continue to support research into the possible health effects of electromagnetic energy that is emitted from radio communications devices. A provision of $5.0 million over four years is already included in the forward estimates. Accordingly, the estimates of the Department of Health and Ageing and the Australian Radiation Protection and Nuclear Safety Agency will be reduced by approximately $1.0 million over four years.
Funding for this research is offset by an electromagnetic energy levy on radio communications apparatus licences, administered by the Australian Communications Authority. The levy will be reduced to align receipts with the agreed level of research funding.
Regulation of research involving embryos and prohibition of human cloning — maintain funding
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | - | - | - | - |
The Government will provide $14.1 million over four years to fund regulatory activities relating to research involving embryos and prohibition of human cloning.
This funding enables administration, licensing, monitoring and compliance and inspection activities to support the Research Involving Human Embryos Act 2002 and the Prohibition of Human Cloning Act 2002. This provides governments and the community with assurance that the cloning of human beings and other unacceptable practices, such as the misuse of embryos for research purposes, will not occur in Australia.
This measure will involve funding of $3.4 million in 2005-06, $3.5 million in 2006-07, $3.6 million in 2007-08, and $3.6 million in 2008-09. Provision for this funding has already been included in the forward estimates.
Round the Clock Medicare — After-hours Primary Care Programme
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | - | - | - | - |
The Government will provide $58.2 million over four years to continue funding for a number of after-hours general practitioner services.
This measure involves funding of $18.0 million in 2005-06, $13.1 million in 2006-07, $13.4 million in 2007-08 and $13.6 million in 2008-09. Provision for this funding has already been included in the forward estimates.
This measure was announced on 26 September 2004 as part of the Government’s election commitment Round the Clock Medicare – Investing in GP After Hours Services.
Round the Clock Medicare — grants for after-hours GP services
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 5.2 | 10.8 | 11.7 | 11.9 |
The Government will provide $39.7 million over four years to help improve access to after-hours general practitioner (GP) services.
Funding will be provided for up to 30 recurrent operating subsidies to a maximum of $200,000 per year for new or recently-established after-hours GP clinics and medical deputising services. Funding will also be used to create up to 100 competitive recurrent grants of up to $50,000 per year, renewable every two years, available to local practices, medical deputising services and cooperatives of GPs that are operating a rostered after-hours service, whether surgery-based or a call out service.
This measure was announced on 26 September 2004 as part of the Government’s election commitment Round the Clock Medicare — Investing in After-Hours GP Services.
Rural Nursing Scholarship Programme
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 2.5 | 2.5 | 2.6 | - |
The Government will provide $20.6 million over three years for the Rural Nursing Scholarship Programme. The rural nursing scholarships are designed to support and educate the rural and remote health workforce, assisting to remove the barriers in recruiting and retaining health workers, and improving access to high quality health services for rural and remote communities.
This measure will involve funding of $6.8 million in 2005-06, $6.9 million in 2006-07 and $7.0 million in 2007-08. Provision for $13.1 million over three years has already been included in the forward estimates.
Additional funds will be allocated to this Programme from the National Rural and Remote Health Support Programme and from the Additional Practice Nurses for Rural Australia and other areas of need Programme.
See the related measures National Rural and Remote Health Support Programme — continue funding and Additional Practice Nurses for Rural Australia and other areas of need — continue funding.
Senior Australians — increasing rural and regional respite services
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 1.4 | 2.6 | 2.6 | 2.7 |
The Government will provide $9.3 million over four years for an additional supplement of $20.45 per day for Multipurpose Services that provide respite services for older Australians and their carers living in rural and remote areas.
This measure was announced on 1 October 2004 as part of the Government’s election commitment Recognising Senior Australians — their needs and their carers.
Senior Australians — overnight cottage respite
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 8.8 | 17.0 | 17.3 | 17.8 |
The Government will provide $61.0 million over four years to enable Commonwealth Carer Respite Centres to purchase additional overnight respite in community homes, particularly in areas where respite options are limited.
This funding will also allow for the development of specific standards of care and reporting requirements for community respite houses to ensure older people in respite are receiving the quality of care they need.
This measure was announced on 1 October 2004 as part of the Government’s election commitment Recognising Senior Australians — their needs and their carers.
Senior Australians — residential respite funding increase
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of Health and Ageing | 5.9 | 8.4 | 13.5 | 13.9 |
The Government will provide $41.8 million over four years through the National Respite for Carers Programme to provide an extra $28 per respite resident per day to aged care providers who dedicate at least 70 per cent of their respite allocations for respite care.
As a result of this measure, the number of high-care residential respite days per year will double from 384,000 days to 768,000 days over the next three years.
This measure was announced on 1 October 2004 as part of the Government’s election commitment Recognising Senior Australians — their needs and their carers.