Australian taxpayers are paying too much for prescribed drugs while tight health budgets mean patients go without necessary care, says Consumers Health Forum CEO, Carol Bennett.
“CHF calls on both sides of politics to pledge a major revamp of pharmaceutical pricing, and for the savings to be directed to improving access to the best medicines available.”
Ms Bennett was commenting on findings of the Australia’s bad drug deal report by Dr Stephen Duckett of the Grattan Institute. It shows the Australian Government could save $1.3 billion a year by matching New Zealand’s drug prices.
“When you are talking about over a billion dollars a year, that amount would finance much better access to a broader range of drugs that people need, but cannot always afford,” Ms Bennett said.
“The report highlights the need for urgent and fundamental change in the lucrative price arrangements the government makes with pharmaceutical companies.
“A decade ago, Australia’s PBS was the envy of the world for keeping drug costs at a moderate level; now Australia pays more than most countries for prescription medicines.”
In his report, Dr Duckett, the expert health economist and former Health Department chief, points to “opaque” drug pricing, especially in relation to generic drugs (off patent) and failure to give consumers and taxpayers sufficient priority.
“Australia’s requirement of a 16 per cent price cut on generic drugs introduced after the expiry of a patent, is ‘timid’, as the report says. Canada imposes cuts of up to 82 per cent.
“We know that almost ten per cent of Australians delay getting a prescription filled because of cost. Australia is meant to have a ‘universal’ health system, but clearly that is no longer the case.
“Australians are being hit with a double whammy of spiralling drug costs both as taxpayers and then as patients when they pay at the pharmacy. We deserve better,” Ms Bennett said.
For more on the article and CHF