Australian Pharmaceutical Benefits Scheme


Disseminate about the Australian Pharmaceutical benefits Scheme.



Pharmaceutical Benefits Scheme is an Australian program to provide subsidy for the price of medicines according to Faunce (2015).

Curtin Labor led the creation of this program which began in 1944.

Although the Australian High Court overthrew the government for subsidizing antibiotics, the program is still in place.

Garrety, McLoughlin, Dalley,Wilson, & Yu (2016) cited this program as it offered services to pensioners and provided free antibiotic medicine to citizens.

For the public to be eligible for any pharmaceutical benefits services, they must have a particular medical card.

Garrety (2016) states that the scheme may also be available to people living outside Australia if there is an agreement between the government and the individual.

PBS is a law that was created under the National Health Act of 53. It has since become an essential part of National Medicines Policy, according to Ghabri & Mauskopf (2017).

The program was not successful in the beginning, but many people started to reap the benefits of the program’s success by 1960.

The cost of maintaining a subsidized healthcare program is high and will require more money.

These citizens are the ones who pay for this program.

They contribute a portion of the funds to pay for the PBS program.

Karanges Blanch Buckley & Pearson (2016) show that the Australian government has spent more than $9Billion to finance this project.

The amount of money that is being spent on prescription subsidized is rising each year.

It is because there are more people joining the program and more drugs that are covered by the subsidization program.

According to the government, patients pay $6 each to keep the program running.

Karanges et. al (2016) found that some people need more drugs every year.

These individuals spend more money than the rest and are covered by the safety net program.

According to the department for health, certain drugs fall under the Pharmaceutical Benefit Scheme. The work of Liu. Dyer. O’Donnell. Milte. Bradley. Harrison & Crotty (2017) is cited.

This report lists more than 7100 drugs.

The drug list is growing each year and the government regularly updates the society.

Liu et. al. (2017) state that the subsidized system means that society members consume a lot more medicine.

The PBS has listed a number of medications in its schedule.

The general medicine is first.

These medications are readily available at pharmacies and accessible by everyone.

The veteran’s medication is the second type of medicine.

A veteran is someone with long-standing experience in the field.

These individuals also get subsidized medication through the Repatriation Pharmaceutical Benefits Scheme.

This program is administered by the department for veterans.

The drug list, which is subsidized through PBS in this department, can be found below.

Other benefits are also available to these individuals, including wound care.

Mellish et. al (2015) report that the government has spent at least $355 millions on this program based on the data provided by the department for veterans.

Additional medications, like the two above groups, may require special care such administration or dispensing.

These drugs cannot be handled by pharmacies, and special arrangements must be made with the department of Health.

Page, Kemp, Kasey, Korda & Banks (2015) say that, apart from the above listed, the government has also created ways to supply medicine outside of the Pharmaceutical Benefits Services.

Page (2015) say that some conditions are rare and that drugs must be available to prevent them.

These drugs can be grouped under the category of lifesaving drugs.

A thorough analysis is required before any medicine can be included in the PBS.

The Pharmaceutical Benefits Scheme Committee of the authority analyzes a medicine before listing it according to Garner & Elshaug (2015).

If a patient requires a medicine that isn’t listed under PBS, they must cover the entire cost.

Statistics show that this program is costing more than the government.

Here’s an example: The table below shows how government spending on PBS compares to Australians.

Parkinson et al (2015) claim that the government includes in the total expenditure the pharmacy that aids in the execution of the program.

PBS pharmacies can dispense many medications.

According to the PBS website this shows that money spent on medications increases as each year passes.

Australians are also growing in population.

Below are the statistics.

According to the statistics, the government spent quite a bit between 2004 and 2005.

This may be due to the increase in population and an increase of the price of each subsidized medicine.

As shown in the graph below, however, there is a decrease in expenditure between 2006 and 2007.

The graph is based on Schaffer Buckley, Cairns & Pearson (2016).

However, the graph below shows the top ten drug names that were enrolled into the program between 2012 and 2012.

The graph above is a reference to Pearson et al (2015).

The subsidy may not cover all costs.

These expenses are not included in the subsidy program.

For example, a pharmacist may inform a patient of an additional emergency dispensing charge during a consultation with the pharmacy.

These costs should be paid by patients.

Many pharmacies and hospitals have introduced a subsidization program. However, each individual must show their medical card to be eligible for the program.

According to Pearson, Pesa Langton Drew Faedo & Robertson (2015) the amount of money required for issuing a health card varies.

Some people are eligible for the safety-net program. These individuals have higher costs than others.

They are more likely to require drugs than others in order to avoid developing other conditions.

The private hospitals of Australia also have the Pharmaceutical Benefits Scheme.

The government’s goal is to provide good health for all citizens.

People who are eligible for the PBS services usually receive different cards.

For example, a card issued to the general population is different from one that issued to veterans.

A person from outside may also be eligible for the services. The government verifies their passports.

But the amount paid may differ.

The amount paid by an outsider is usually higher than that of the ordinary citizen.

All these steps ensure that everyone who lives here is in good health.

Examined Issues

It is difficult for the government to deliver quality health services to citizens via this program.

The provision of this service comes with many problems.

A PBS program analysis is performed when any medicine has to be listed.

This analysis is performed by the Pharmaceutical Benefits Scheme Advisory Committee.

This includes the cost of drug.

It is a tedious process and many people give up on the idea of this analysis.

It takes about seventeen weeks.

After the cost-effective analysis has been completed, the committee presents the recommendation to the parliament and the budget in reference to Schaffer (2016).

The budget must be approved by parliament.

PBS passes most budgets at a cost of ten millions or more.

Public opinion is not always clear about the effectiveness of their money due to the high cost.

The primary source of funds for subsidizing medicine is primarily from the tax payers.

Before making a decision on a higher amount, the parliament should consider the views of the public.

This is because certain medicines were unavailable due to high prices.


PBS schedule delivers reliable health services to Australians.

It gives people with less resources the opportunity to receive health services similar to those of other people.

Before deciding on how much citizens will contribute, however, the government should take into account the public’s opinion.

A few citizens abuse the program.

Because they see the opportunity to consume more than was expected, Australia is seeing high drug consumption.

The authorities should devise a system to reduce drug consumption.

It is important that emergency services are available to all who have a need.

It is a good thing that the scheme has also brought together private hospitals to offer the subsidized drugs.

Refer to

Retrospective comparison between prescription data and claims data for Australia’s Pharmaceutical Benefits Scheme in HER2-positive early stage breast cancer patients, 2008-2012.

Public Health Research and Practice 27, 5:1-9.

The 2007-2015 period of psychotropic medication use in Australia: Changes in incidence, prevalence, treatment exposure, and annual incidence.

Australian & New Zealand Journal of Psychiatry (51(10)), 990-999.

How the Australia-US Free Trade Agreement affected the Pharmaceutical Benefits Scheme.

Australian Journal of International Affairs 69(5): 473-478.

The Australian experience: National electronic health records systems as ‘wicked projects’.

Information Polity, 21(4): 367-381.

The budget impact analysis used in the economic evaluation new medicines in Australia, England and France: Relation to cost-effectiveness analysis.

20?five years of prescription opioid usage in Australia: A whole?of?population assessment using pharmaceutical claims.

British journal for clinical pharmacology. 82(1): 255-267.

Association of dementia and cognitive function in older people in Australia’s nursing homes.

Journal of geriatric Cardiology: JGC 14(6), 407.

Data collection for the Australian Pharmaceutical Benefits Scheme: A guide for researchers.

BMC research Notes, 8(1): 634.

Public Health Res Pract. 25(4): e2541546.

International review: Disinvestment and value based purchasing strategies in pharmaceuticals.

Pharmacoepidemiology, 24(5), 447-455.

An interrupted time series analysis on the effect of alprazolam rescheduling in Australia: Taking charge of prescription drug usage.

JAMA Internal Medicine, 176(8): 1223-1225.