How Australia could save $320m a year on prescription drugs

 In Australia, NewZealand, Pharmacy
Taxpayers could save $320 million a year by only paying for the best-value drug when cheaper drugs work just as well as more costly ones, according to a report by a former federal health department head.
The Grattan Institute report, by health program director and former top bureaucrat Stephen Duckett and Grattan health fellow Peter Breadon, evaluates the effectiveness of therapeutic price premiums, a policy which is supposed to make patients pay the difference between an expensive drug and its cheaper equivalent. One aim of the policy is to put pressure on drug companies to drop their prices to reduce the risk of patients switching from their drug to a less costly equivalent.
But the pair argue that while the idea behind the policy is good, it is "broken" in Australia because the scheme covers too few drugs, premiums charged are too small, and patients are often unaware of whether their drug attracts a premium.
Australia only charges premiums on two drugs, both blood medications for which patients pay an extra $3.50 per script.  Sydney Morning Herald – Read more…

Recent Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.