The real costs of medicines

The Federal Government has embarked on a public awareness campaign to try and curb the costs of subsidised drugs under the slogan "The prescription for a healthy Pharmaceutical Benefits Scheme".

The PBS covers approximately 600 medicines in 1500 forms and strengths available under more than 2500 brand names. In 2001-02, the PBS cost taxpayers $4.5 billion and accounted for an estimated 15% of the Commonwealth's health budget. The PBS caps the cost of listed drugs to Concession cardholders to $3.70 per prescription and a maximum of $23.10 for Medicare cardholders, with the Government contributing the rest.

Whereas many antibiotics require no subsidy and sell for less tham $23.10, Donepezil, used in treating Alzheimer's disease, costs $158.62; Risperidone, used to treat Schizophrenia, costs $209.62; Goserelin, used to treat prostate cancer, costs $1145.64; Paclitaxel, used to treat breast and ovarian cancer, costs $2350.61; and Imatinib, used to treat chronic Myeloid Leukaemia, costs $5658.50. The cost of the PBS has increased 60% in the last four years and a range of initiatives is being implemented to try and stem this growth by eliminating waste in the some 160 million PBS prescriptions supplied each year. Increased costs of the scheme, which is one of the cornerstones of Medicare, together with pressures from free trade talks with the U.S., threaten the system.