Medical Device Industry supports evidence-based reform, not alternative facts

The Medical Technology Association of Australia (MTAA) has today disputed a number of claims relating to the Applied Medical submission to the Senate Community Affairs inquiry into the Prostheses List (PL) framework.

The MTAA in its own submission outlines a number of reform options and fully supports a price disclosure model to increase transparency and accountability. 


1. False claims of a “secret committee of lobbying groups” are wrong

The Department of Health in its own submission to the Committee clearly articulates the process and working groups associated with the Prostheses List (PL).  The identity of the organisations involved are publicly available and represented professional experts in this field and senior bureaucrats who do not deserve to have their integrity questioned.


2. False claims of $800m in “unnecessary costs and higher premiums” are wrong

The Department of Health in Senate Estimates in October last year acknowledged in its testimony this number is unrealistic and cannot be verified and the former chief executive of the Private Health Insurance Administration Council, Shaun Gath, said this was “just an insurer fantasy.”


3. False claims the Pharmaceutical Benefits Scheme (PBS) includes public and private and overseas data are wrong

The PBS price disclosure does not use international or public pricing to set the prices. It is based on comparison of prices and volumes across the private sector only. These requirements are set out in the National Health Act Regulations.


Ian Burgess, Chief Executive of the Medical Technology Association of Australia said:

“Last year in Australia more than 2.5 million surgeries took place, for each and every one of theses surgeries medical technology played a part.

“Despite nearly one in four patients of Australian hospitals requiring surgery (24%) the Prostheses List accounts for 1.2% of the entire health budget.

“MTAA is very disappointed by the claims, which are simply wrong. We have publicly stated our support for reform of the PL including a price disclosure model which will deliver increased transparency for all stakeholders.

“The initial $86m cut to the Prostheses List has already had huge ramifications. Any further arbitrary cuts will have an impact on patients.

“We have been, and remain, fully supportive of the Government’s efforts to achieve lasting and meaningful fact based reform of medical device benefits.

“MTAA considers its reform proposal for price disclosure remains the best reform option to implement with the lowest risk to patients.

“We look forward to discussing our submission in detail with the Senate Community Affairs Committee next week.”