Trading in our health system? An analysis of the impact of the Australia-US Free Trade Agreement on the Pharmaceutical Benefits Scheme

This paper considers the likely impact of reforms sought by the US pharmaceutical companies on the PBS system in Australia. The PBS system is currently effective in minimising the price paid by Australians to US pharmaceutical companies. If these price controls were relaxed it is estimated that the cost to Australians of pharmaceuticals will rise by between $1 billion and $2.4 billion. The report estimates the impact on the cost of PBS co-payments faced by individuals if these increases were passed on to consumers rather than absorbed by the Budget