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The Pharmaceutical Benefits Scheme 2003-2004.

¹School of Public Health, La Trobe University, 3086, Australia. k.harvey@latrobe.edu.au.

Australia and New Zealand Health Policy

|February 1, 2005

Summary

The Pharmaceutical Benefits Scheme (PBS) faced sustainability concerns due to rising costs and an aging population. Reforms aimed to shift costs to consumers and improve medicine use, but challenges with prescribing software persist.

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Area of Science:

Health economics
Pharmaceutical policy
Public health

Background:

The Pharmaceutical Benefits Scheme (PBS) experienced an 8% growth in 2003-04, slower than the decade's average, raising sustainability concerns.
An aging population and expensive new medicines, alongside potential impacts from the Australia-United States Free Trade Agreement, heightened these concerns.
Government proposals included a 27% increase in patient co-payments to transfer costs, a measure eventually supported politically.

Purpose of the Study:

To analyze the sustainability challenges and policy responses related to the Pharmaceutical Benefits Scheme (PBS).
To evaluate reforms aimed at cost containment and quality use of medicines within the PBS framework.
To identify emerging issues associated with the adoption of computerized prescribing software by general practitioners.

Main Methods:

Analysis of PBS growth rates and government policy proposals.
Review of pharmaceutical reform initiatives in public hospitals and their expansion.
Assessment of programs promoting quality use of medicines and the impact of computerized prescribing software.

Main Results:

Public availability of Pharmaceutical Benefits Advisory Committee recommendations and full PBS medicine costs on labels were introduced.
Pharmaceutical reform in Victorian hospitals was evaluated and extended, alongside the development of quality use of medicines programs.
Computerized prescribing software adoption by GPs yielded benefits but also introduced problems like promotional content and variable drug-interaction detection.

Conclusions:

The sustainability of the PBS remains a significant concern requiring ongoing management of costs and medicine introduction.
Reforms focused on cost-shifting and quality use of medicines were implemented, with some successes and broader adoption.
Addressing issues within computerized prescribing software, including pharmaceutical promotion and interaction detection, is crucial for future improvements.

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