Australian Pharmaceutical Benefit Scheme

Running head: AUSTRALIAN PHARMACEUTICAL BENEFIT SCHEME 1
Australian Pharmaceutical Benefit Scheme
Student’s Name
Professor’s Name
Institutional Affiliation
Date
Contents

AUSTRALIAN PHARMACEUTICAL BENEFIT SCHEME 2
Consumption of medicine in Australia............................................................................................3
Introduction..................................................................................................................................3
Consumption rates for medicine..................................................................................................4
Cost of medicine consumption.....................................................................................................5
Types of medicine consumed.......................................................................................................7
Conclusion...................................................................................................................................8
References........................................................................................................................................9

AUSTRALIAN PHARMACEUTICAL BENEFIT SCHEME 3
Consumption of medicine in Australia
Introduction
The Idea of developing PBS in Australia began in1944though it was rejected by the
court. It began its main operations in1948. It was restricted to offering free medication to the
pensioners and around one hundred and thirty-nine vaccines as well as lifesaving medicines to
the entire public. It became very strong when it was first established under the law in1953 under
the national health act and it is one of the major aspects of the national medicine policy. In 1960
PBS was made an all-encompassing scheme allowing access to a good range of different
medicines in Australia. By 2014 the pharmaceutical benefits scheme had registered and
subsidized more than two hundred and eleven million prescriptions. The medicines are
approximated to have cost the government of Australia more than nine billion dollars. This
amount is about twenty-one percent of the total health expenditure. Van Boeckel, et al 2014).
The advisory committee of the pharmaceutical benefits scheme is obligated to assess all
the medication and then recommend which should be listed by the PBS and which should not.
The committee was set up by the government but not part of the PBS. The committee also
recommends which drugs should be withdrawn from the PBS list in case there are any safety
concerns. (Gleeson, et al 2015).
The medication must be listed with the Australian therapeutic good register before they
are accepted for listing in the pharmaceutical benefits scheme. The medication companies must
apply for the listing of the drugs with the therapeutic goods administration. Clinical trials
evidence is a requirement and must, therefore, be provided in order to ensure the health safety of
the patient who may use the drugs. The medication must attain the set quality standards and must

AUSTRALIAN PHARMACEUTICAL BENEFIT SCHEME 4
be cost-effective compared to all other types of medicine offered in the market. (Walkom, et al
2013).
According to the national health act, the pharmacist must be approved to dispense
medicine from particular pharmacies. The government pays a portion of the cost to the
pharmacist and the patient are charged the remaining amount. Under the PBS, the amount of
money that a patient is supposed to pay towards the medication cost of the pharmacies are set to
protect the public. In 2015 a maximum of 37.70 dollars was paid by the pensioners, while the
cohesion patients paid an average of 6.10dollars per prescription. (Schaffer, et al 2015).
According to the national health act, the pharmacist must be approved to dispense medicine from
particular pharmacies. The government pays a portion of the cost to the pharmacist and the
patient are charged the remaining amount. Under the PBS, the amount of money that a patient is
supposed to pay towards the medication cost of the pharmacies are set to protect the public. In
2015 a maximum of 37.70 dollars was paid by the pensioners, while the cohesion patients paid
an average of 6.10dollars per prescription. (Schaffer, et al 2015).