APMA views Rx spend, PBSC transparency

Australians have the world's second-longest healthy life expectancy, andthis is despite spending only 8.6% of Gross Domestic Product on health, according to the Australian Pharmaceutical Manufacturers Association.

Australian households spend A$2.94 ($1.54) a week on prescription drugs, compared with A$10.74 on tobacco and A$20.43 on alcohol, it says, adding: "spending a little more on medicines will further enhance the quality of life of Australians, without the need for overall health expenditure to exceed 9% of GDP. Indeed, increased spending may become a necessity."

The government is shouldering an increasing share of the Pharmaceutical Benefits Scheme because patient contributions are falling, relative to the cost of drugs as their contribution is indexed to the Consumer Price Index, the APMA points out. Growth in Australian prescription volume in the 12 months to September 2001 was "a modest" 6.3%, compared with average annual growth during the last decade of about 8.5%. Increased PBS costs are partly due to the higher expenses of producing new medicines rather than increased script volumes, it says, adding that: "Australians get their medicines at a low price from the industry and subsidized by the government."