Mixed views on Grattan Institute report on drug price cuts impact in Australia

The Grattan Institute has published an updated report on Australia’s drug pricing, which has been applauded by Health Minister Peter Dutton, but not by the generics sector.

Highlighting the 50.06% price cuts that were the result of price disclosure rules introduced in 2007 by the then Howard government, Mr Dutton said this has so far saved the Pharmaceutical Benefits Scheme (PBS) A$5 billion ($4.57 billion).

The Grattan report says the government’s purchasing policy needs to be much tougher on manufacturers and much fairer for consumers. It is not just a matter of saving money: nearly one in 10 Australians doesn’t take medicines a doctor prescribes because of cost. For six of the seven drugs with price cuts today, benchmarking would save patients nearly A$20 more for each box of pills, on average.