Healthy Skepticism Library item: 6341

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Franklin M.
Drug Costs Slowdown
The Australian 2006 Nov 2
http://www.theaustralian.news.com.au/story/0,20867,20685904-23289,00.html

Full text:

Drug cost slowdown
Matthew Franklin
November 02, 2006
GROWTH in the cost of the Pharmaceutical Benefits Scheme has slowed to below the inflation rate.
But Health Minister Tony Abbott said yesterday he would press ahead with reforms of the system to find more savings so new drugs could be added to the list of government-subsidised medicines.

A Senate estimates committee heard yesterday that although the cost of the PBS had been forecast to grow by 7.8per cent in the year to June 30, the scheme cost $6.2billion — up only 2.7 per cent.

The inflation rate in the same period was 4 per cent. The slowdown followed several years of heavy growth, including 10.9 per cent in 2003-04.

Confirmation of the slowdown came as Mr Abbott continued work on reforms to the PBS partly triggered by the earlier high growth rates.

Mr Abbott told The Australian the 2005-06 figure reflected downward trends in prescriptions of several drug groups where use was less than had been expected. “There are signs of reduced GP prescribing, removal of some drugs such as Vioxx and impact from adverse publicity about others such as antidepressants and hormone replacement therapy,” he said.