Australian CPI rise in pharmaceuticals 'due to PBS safety net'

The apparent surge in pharmaceutical prices included in yesterday’s Australian Bureau of Statistics Consumer Price Index for the March quarter is easily explained by the mechanics of the Pharmaceutical Benefits Scheme safety net, said trade group Medicines Australia chief executive Brendan Shaw.

The ABS figures showed that pharmaceutical prices had increased 12.5% for the March 2011 quarter.

“Today’s CPI pharmaceutical price should be considered in the context of the December 2010 CPI, when pharmaceutical prices fell 6.2%,” Dr Shaw said, adding: “The fall of the pharmaceutical price index throughout the year to December 2010 quarter was largely due to patients reaching the PBS safety net and paying either a reduced co-payment in the case of general patients, or no co-payment in the case of concession card holders. As each calendar year progresses, more people reach the PBS safety net.”