PBS ‘budget bright spot’
May 17, 2013
A SPECIAL edition of the “PBS
Scorecard” produced by the
Medicines Partnership of Australia
has highlighted the stark contrast
between the Pharmaceutical
Benefits Scheme and other parts of
the health system, with PBS Reform
significantly slowing growth in
government spending on medicines.
The budget forward estimates
show that PBS expenditure as a
percentage of GDP is expected
to decline in each of the next
four years, despite the country’s
growing and ageing population.
Spending on public hospitals
is forecast to rise by 17% in real
terms, while the PBS component of
the budget will rise by just 5%.
The PBS Scorecard also highlights
the massive impact of price
disclosure on the PBS, with 169 offpatent
drugs subject to the regime
from 01 Aug this year.
“Every off-patent drug is subject
to price disclosure, ensuring that
taxpayers reap the benefit of the
highly competitive market for
these drugs,” the document says,
highlighting reductions of between
10% and 90% on the wide range of
molecules affected.
Finally, the scorecard also collates
ABS data to look at the growth
in prices paid by consumers for
medicines, in contrast to the
growth in household incomes and
overall inflation.
Over the last 20 years consumer
medicines prices have risen 57%,
compared to overall prices in the
economy which are up 70%.
Median household income grew
by 118% over the same period -
much faster than medicine prices
and in contrast to surges in other
costs such as utilities and petrol.
Prices paid for medical and
hospital services have also risen
191% in the last 20 years, “so while
certainly consumers may be feeling
the pressure of higher prices for
health costs, this has not been
due to medicine prices,” the PBS
Scorecard states.
CLICK HERE to view the scorecard.
The above article was sent to subscribers in Pharmacy Daily's issue from 17 May 13To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 17 May 13
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