Medicines Australia submission calls for immediate change of discount rate

Pharma News: Medicines Australia is warning that Australia must act now to ensure that our health system is resourced properly to deal with growing demand and to cope with inevitable future pandemics and health crises.

Medicines Australia CEO, Elizabeth de Somer, said that the global COVID-19 pandemic has sent a clear message that all nations must future-proof their health systems.

“We must prepare for the future. This will involve planning for a strong health workforce; health infrastructure; public health policy and strategy; medical technology; community education and information campaigns – and medicines,” Ms de Somer said.

“It is vital that we remove any disincentives to research and development of medicines, including vaccines and curative therapies, that will be needed in the years and decades ahead.

“Currently in Australia, the priority is on medicines that deliver an immediate or short-term benefit. Treatments that have a shorter-term benefit are economically valued higher than a treatment that has a longer or lifetime benefit. For example, a cancer treatment that may increase someone’s survival rate for an extra five years is valued more highly than a vaccine that will protect a child for the rest of their life.

“As a society, Australia must treat all these medicines – which save lives, extend lives, and protect quality of life – more equally. This can be achieved by a simple change in policy by the Pharmaceutical Benefits Advisory Committee (PBAC).”

Medicines Australia has made a detailed submission – based on international best practice and experience – to the PBAC to change its position on this policy, which is known as the base discount rate.

Australia’s current discount rate has not been adjusted for more than 30 years to reflect the contemporary medical and health environment and does not align with international health technology assessment (HTA) best practice.

“Our high discount rate is ignoring the health needs of our future generations,” Ms de Somer said.

“Medicines Australia wants the PBAC to reduce Australia’s current discount rate of 5% to 1.5%, as recommended in countries such as Canada and England, to recognise the value of preventative treatments and cures, and speed up access to them.

“This would provide an incentive for research, development, and production of more new medicines that will be ready to deal with current, emerging, and future health conditions.

“It will better prepare our health system to deal with the complexities of future pandemics and other public health crises. It will strengthen the health system to allow it to save lives and improve the quality of life for our children and their children,” Ms de Somer said.

The Medicines Australia submission recommends immediate change of the discount rate.

The Medicines Australia Submission to the PBAC on the Discount Rate is available here.