The Benefits of the Pharmaceutical Benefits Scheme to the Australian Community and the Impact of Increased Copayments

The Pharmaceutical Benefits Scheme (PBS) has served the Australian community well. Increased growth in the cost of the PBS over the last decade is due to a number of factors. These include the listing of new, more expensive medicines on the PBS; the growth in the numbers of people eligible for health concession cards; and a focus on diagnosing and treating chronic illness particularly asthma, diabetes, mental illness and heart disease. This article argues that increases in the present system of ‘copayments’ for medicines will not contribute to improving the equity, effectiveness or efficiency of the health system, particularly for those using the health system most. The concern of government about the recent high rate of growth in the PBS needs to be placed in a broader context. PBS expenditure growth is not new, as the PBS has grown at an average rate of 10 % per annum over the last decade. The growth in recent years, however, has been dramatic: in 2000/2001, growth was about 19%. The government is concerned about its ability to continue to fund such a high growth program. However, it would be flawed policy if the recent high growth justified major policy change that did not take into account the benefits of the PBS. Appropriat