Commonwealth Department of Health
Price Disclosure represents the Australian Government’s single largest budget savings measures ever implemented. Total savings to date are estimated at over $10 billion. The Department of Health's annual report states that 'Price disclosure is continuing to produce significant savings, that are driven by market forces. Price disclosure saved the Government $2,736 million in 2017-18'.
PBS expenditure by government totals over $11 billion per annum, representing 13% of total Commonwealth health expenditure. On behalf of the Department of Health, AHA has administered the PBS Price Disclosure program since its inception in 2011. Under this program, AHA assists the Department to secure reductions in the prices of drugs listed on the PBS (F2 Formulary), which to date have resulted in government savings of over $10 billion.
AHA was recently reappointed to this role following a competitive tender process. AHA’s ongoing role includes:
The Price Disclosure regime is established under Part VII of the National Health Act 1953 and is administered by the Department of Health.
Price Disclosure represents part of a suite of PBS reforms, tasked with seeking efficiencies in the management of the PBS, whilst continuing to offer Australians access to current and new medicines.