This report details the impact of the various aspects of the 2007 reforms reforms to the Pharmaceutical Benefits Scheme, which significantly restructured PBS pricing arrangements, including the impact on government expenditure, consumers, industry, pharmacy, wholesalers and prescribers.

The pharmacy sector is one of Australia’s most protected industries. Few countries have such complex and restrictive pharmaceutical scheduling laws as Australia. This has inhibited competition and increased the costs that Australian consumers pay for many non-prescription pharmaceuticals sold only by pharmacies. This industry is a standout candidate for micro-economic reform.

This federal government consultation paper seeks comment on the proposed community service obligation arrangements for the wholesale distribution of medicines subsidised under the Pharmaceutical Benefits Scheme. These arrangements form part of the Fourth Community Pharmacy Agreement between the Government and the Pharmacy Guild of Australia, which will come into effect from 1 July 2006. The...

There has been ongoing speculation as to whether, and if so how, the Commonwealth Pharmaceutical Benefits Scheme (PBS) might be affected by US-Australian Free Trade negotiations. The US pharmaceutical industry has been concerned about the role played by the PBS, and other arrangements in Australia, in lowering the profitability of the US industry in Australia.

This note discusses some recent projections of future costs to the Commonwealth Pharmaceutical Benefits Scheme. Author, Maurice Rickard, observes that care should be taken in basing future projections on past PBS growth trends and in comparing PBS growth with growth in other areas of Commonwealth health expenditure.