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Budget Priorities

Maintaining Affordable Access
to Pharmaceuticals

This Budget introduces changes to reduce the cost of the Pharmaceutical Benefits Scheme, so all Australians can continue to have affordable access to necessary medicines.

growth in the Pharmaceutical Benefits Scheme

 

The Pharmaceutical Benefits Scheme (PBS) is growing rapidly. The PBS has grown from $1.2 billion in 1990-91 to $4.2 billion in 2000-01. In this Budget, the Government introduces changes so that consumers, doctors, industry and pharmacists all contribute to reducing the cost of the PBS.

changes for consumers

 

Concessional co-payments will rise by $1 to $4.60 and general co-payments will rise by $6.20 to $28.60 per prescription. These co-payments still only cover a small part of the total cost of the PBS. Safety net arrangements will continue to protect people who need a large number of medicines. These changes will save $1.1 billion over four years.

changes for doctors

 

A number of initiatives will be introduced to clarify PBS eligibility rules for doctors and to assist them to prescribe within these rules.

changes for the pharmaceutical industry and pharmacists

 

The pharmaceutical industry will provide information to doctors about the restrictions that apply to PBS medicines. The Government also will target pharmacy fraud. These measures will save $349 million over four years.

Pharmaceutical Benefits Scheme expenditure growth
from 1990-91 to 2000-01

Pharmaceutical Benefits Scheme expenditure growth from 1990-91 to 2000-01

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