Australia's PBS can help govt hit productivity targets, says pharma trade group, commenting on IGR3

Ongoing Australian investment in a sustainable and cost-effective Pharmaceutical Benefits Scheme will help the government achieve its goal of lifting productivity, says the research-based trade body Medicines Australia's chief executive, Brendan Shaw. Dr Shaw was responding to today's launch by the Treasurer of the Third Intergenerational Report - Australia to 2050.

Released by Treasurer Wayne Swan in Canberra, Australia to 2050 points to the major concerns that will confront future governments over the next four decades, by which time the proportion of the population aged over 65 is projected to double. While part of the challenge of an aging population comes from the need to support retirees, it will also contribute to skyrocketing health care costs. The report shows health spending doubling over the next 40 years from 4.0% of Gross Domestic Product to 7.1%, meaning health care costs account for more than two-third of the projected increase in spending.

'We all recognize the very real challenges of population growth and aging,' Dr Shaw said. 'The onus is on the health care sector and the government to work together towards a solution that allows Australia to manage the economics of an ageing population. The government has rightly identified productivity growth as the key to managing an ageing population.'