The research in this paper suggests that Australia’s private health insurers are set to enjoy a windfall of between $3.5 billion and $5.5 billion over the next six months.

The paper provides an overview of the expenditure of high cost drugs in Australia and examines the average annual growth of these programs. The outlook for expenditure on high cost medicines and possible policy responses is also considered. Executive summary • Despite an overall slowing of growth in expenditure on the Pharmaceutical Benefits Scheme (PBS)...