On 21 November 2016, the Senate referred the following matter to the Senate Community Affairs References Committee for inquiry and report:
Price regulation associated with the Prostheses List Framework.
The terms of reference are:
- the operation of relevant legislative and regulatory instruments;
- opportunities for creating a more competitive basis for the purchase and reimbursement of prostheses;
- the role and function of the Prostheses List Advisory Committee and its subcommittees;
- the cost of medical devices and prostheses for privately insured patients versus public hospital patients and patients in other countries;
- the impact the current Prostheses List Framework has on the affordability of private health insurance in Australia;
- the benefits of reforming the reference pricing system with Australian and international benchmarks;
- the benefits of any other pricing mechanism arrangements, including but not limited to those adopted by the Pharmaceutical Benefits Scheme, such as:
- mandatory price disclosure,
- value-based pricing, and
- reference pricing;
- price data and analytics to reveal the extent of, and where costs are being generated within, the supply chain, with a particular focus on the device categories of cardiac, Intra Ocular Lens Systems, hips, knees, spine and trauma;
- any interactions between Government decision-making and device manufacturers or stakeholders and their lobbyists;
- any implications for prostheses recipients of the National Disability Insurance Scheme transition period; and
- other related matters.
Submissions were sought by 30 January 2017. The reporting date is 30 March 2017. On 23 March 2017, the Senate granted an extension of time for reporting until 10 May 2017.