New figures confirm PBS spending barely growing

December 15, 2005

Spending on the Pharmaceutical Benefits Scheme has plummeted to a level well below the inflation rate, the Federal Government's Mid-Year Economic and Fiscal Outlook document confirmed today.

The forecast for PBS spending growth in 2005-06 in last year's Budget was 7.4 percent, but this has been radically altered by Treasury today to below 2.2 percent.

The new figures verified by Treasury should put to rest any suggestion that the PBS was growing "out of control", the Chief Executive Officer of Medicines Australia, Kieran Schneemann, said today.

It is now clear that the 1 January increase in co-payments - which will cut the issuing of scripts by 15 million over the next five years - and the 12.5 percent price cut decision which took effect on 1 August, have had a significant effect.

That effect is likely to become greater over time, with other forecasts suggesting PBS spending may actually be heading downwards for the first time since records were kept.

"We are concerned how the community might be affected by reduced Government spending on critical medicines, especially if the Government goes ahead with new reforms as has been suggested in the media recently," Mr Schneemann said.

"As the Opposition spokeswoman for health, Julia Gillard, said today, it is vitally important that the worth of the PBS and any reduction in spending must be considered in line with the impact on the overall health system and the ability of patients to afford their needed medicines."

According to the Budget, the estimate of PBS spending for 2005-06 was $5.774 billion. This was a predicted increase of 7.4 percent on the estimate of 2004-05 spending of $5.375 billion.

Treasury's Mid-Year Economic and Fiscal Outlook revises down that estimate of PBS spending in 2005-06 by $283 million (page 31), suggesting that the new expected figure for this financial year is $5,491 million.

By comparing the Budget estimate with the MYEFO estimate, Treasury now believes that PBS spending will grow by only 2.16 percent.

Research Australia

Related Health Articles from Brightsurf:

The mental health impact of pandemics for front line health care staff
New research shows the impact that pandemics have on the mental health of front-line health care staff.

Modifiable health risks linked to more than $730 billion in US health care costs
Modifiable health risks, such as obesity, high blood pressure, and smoking, were linked to over $730 billion in health care spending in the US in 2016, according to a study published in The Lancet Public Health.

New measure of social determinants of health may improve cardiovascular health assessment
The authors of this study developed a single risk score derived from multiple social determinants of health that predicts county-level cardiovascular disease mortality.

BU study: High deductible health plans are widening racial health gaps
The growing Black Lives Matter movement has brought more attention to the myriad structures that reinforce racial inequities, in everything from policing to hiring to maternal mortality.

Electronic health information exchange improves public health disease reporting
Disease tracking is an important area of focus for health departments in the midst of the COVID-19 pandemic.

E-health resource improves men's health behaviours with or without fitness facilities
Men who regularly used a free web resource made significantly more health changes than men who did not, finds a new study from the University of British Columbia and Intensions Consulting.

Mental health outcomes among health care workers during COVID-19 pandemic in Italy
Symptoms of posttraumatic stress disorder, depression, anxiety and insomnia among health care workers in Italy during the COVID-19 pandemic are reported in this observational study.

Mental health of health care workers in china in hospitals with patients with COVID-19
This survey study of almost 1,300 health care workers in China at 34 hospitals equipped with fever clinics or wards for patients with COVID-19 reports on their mental health outcomes, including symptoms of depression, anxiety, insomnia and distress.

Health records pin broad set of health risks on genetic premutation
Researchers from the University of Wisconsin-Madison and Marshfield Clinic have found that there may be a much broader health risk to carriers of the FMR1 premutation, with potentially dozens of clinical conditions that can be ascribed directly to carrying it.

Attitudes about health affect how older adults engage with negative health news
To get older adults to pay attention to important health information, preface it with the good news about their health.

Read More: Health News and Health Current Events is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to