Review to Determine Correct Subsidy for Chemotherapy Infusions

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PDF printable version of Review to Determine Correct Subsidy for Chemotherapy Infusions (PDF 175 KB)

5 May 2013

Minister for Health Tanya Plibersek today announced a major review into the way chemotherapy is funded and provided as a way of ensuring cancer patients have continued access to quality, affordable treatment.

“Being diagnosed and treated for cancer is a traumatic experience for patients and their families,” Ms Plibersek said.

“The Gillard Government wants to ensure cancer patients don’t experience any interruption in their treatment while we closely examine how much we should be paying to support the ongoing viability for chemotherapy providers.”

Ms Plibersek said the review followed talks between the government and the Pharmacy Guild of Australia over appropriate subsidies for dispensing chemotherapy after the reduction in price the government pays for a key chemotherapy drug, Docetaxel.

Some chemotherapy providers used the inflated price the government paid them for the drug itself to cross-subsidise the cost of delivering it.

But after the price drop, when generic versions of the drug entered the market, some providers complained they wouldn’t be able to keep treating cancer patients without additional funding.

“The review will be a transparent process designed to put a funding model in place that is sustainable in the long-term,” said Ms Plibersek.

“The government wants to identify and manage every component of funding appropriately and ensure that cross-subsidisation is not required to support the viability of chemotherapy services.”

Ms Plibersek said the government will provide $29.7 million in the 2013-14 Budget to pay providers an additional $60 for each chemotherapy infusion on an interim basis for six months.

The funding will cover the review period between 1 July, 2013 and 31 December, 2013, and be provided in addition to current fees of $76.37. The subsidy paid to pharmacists to dispense standard medication is $6.52, however the complexity of preparing chemotherapy medication means the dispensing subsidy was already greater. Some providers said it should be more.

Ms Plibersek said the government had demonstrated it was committed to providing drugs for cancer patients, having added 30 new drugs to treat 15 different cancers at an additional cost of $1.3 billion to the Pharmaceutical Benefits Scheme since 2007.

“To be able to find room in the budget for new medicines and treatments, it is essential taxpayers get the most out of every health dollar we spend. In the case of Docetaxel, inflated prices had meant the government was in some instances paying $2,800 above the market price for this drug.”

Ms Plibersek said it was important to note the price of chemotherapy drugs provided through the PBS has not and will not rise beyond normal inflation. The most paid for a whole course of treatment for the drugs is currently $5.90 for a concession patient or $36.10 for a general patient.

More information on the PBS Chemotherapy Medicines Review can be found at the Department of Health & Ageing website.