Australia's Pharmaceutical Benefits Scheme

[__earth]

This question concerns people who are currently or have some connection to Australia.

I wonder, how does the Australian government subsidies drugs?

I read somewhere it is through typical subsidies.

And at another somewhere, the government buys the drugs at a negotiated price due to economy of scale.

So, how does the system actually work there?

[The_Observer]

Hey! Moderator! Pandaboy!

Move this to the ELT about Medicine SIG!

Then only I will answer that. Mind if I explain the whole Medicare scheme as well? If only such a thing existed in Malaysia...

[__earth]

aaa cmon

I dont want to join too many sigs. makes my head spins.

[The_Observer]

kk...the PBS scheme is yes, basically drugs bought at wholesale from drug companies all around the world (Pfizer, GSK, Novaritis etc. etc.) usually at a discount price (bulk sale) or a negotiated contract between the Government and the company involved.

Most of the deals are not published in the newspapers but I think the Government as any others would try to get the most within the healthcare budget allocation. PBS is allocated like AUS$ 6.2 billion for 2004-2005.

The public either buys it at a pittance of the original price or in some cases, even free.

Is that enough to satisfy your hunger for info.?

[__earth]

yeah.

thanks. and since you are in austalia, how does the debate on the PBS currently go on?

I heard ppl dont like the idea of letting the american side entering australia's drugs market.

[The_Observer]

Well, I think the current federal Government (under John Howard) is heavily promoting it...since election is near...
The talk on the 'streets' seem to suggest that the public dun really care about whatever debate as long they get good healthcare services from any Government (Liberal or Labour)

About the American drug company issue...I am not too sure but it could be because one gets the best generic drugs from outside the US. American drug companies are a little too petty over its patent rights and tend to sell their stuff a wee bit too expensive.

What's the talk over there?

[__earth]

The American doesnt care since they are the one that are going benefits from the proposed free trade agreement. Or least, I have not heard any real argument against the free trade agreement here.

After all, if Aussie and the US are to sign the agreement, the US drugs companies are going to have a say in the PBS. There is no need to complain when you get a free pie.

But I heard, Labour are against the deal because American entry could possibly hike up the drugs price.

[The_Observer]

Still a free trade agreement does not necessarily mean that Australia must buy from the US...just that Australia and the US must remove tariffs, protections etc. so that there is a level-playing field (that's easy for the US to say).
I agree that the US get most of the benefits. After reading it on the papers, I wondered how John Howard could only obtain a few real perks for the country...but then he and Liberal party does run the economy well, better than the Labour party.

BTW, China recently removed Pfizer's patent right on some of their drugs most notably sildenafil (Tradename: Viagra) and Pfizer is not happy but they can't do a thing.

Mark Latham and the Labour party won't totally 'kaboosh' the PBS or the free trade agreement but would try to amend a few things to protect the local economy.
Actually it would be better for us int'l students here if Labour takes power end of this year because the Aussie dollar would likely to fall. Better exchange rate for all! But then, domestic prices would go up a bit so the advantage is more or less nullified.

Anyway, the US drug companies' drugs hike mean nothing because their prices were originally exhorbitant. Try reading up the protests in Bangkok for the World AIDS summit.