Australia’s PBS means that consumers pay less for expensive medicines. The method of working with this system is as follows.

The US Pharmaceutical Robbie is for the US President Donald Trump’s pharmaceutical benefit system (PBS) to damage profits. I urged Trump Putting tariffs on pharmaceutical imports in Australia.

Prime Minister Anthony Albanese I defended the planAustralia’s pharmaceutical subsidy system says, “It was not for negotiations.” Opposition leader Peter Dutton also said it would protect PBS, which was “envy of the world.”

But what exactly is PBS and why is it important?

How did PBS start?

In the early 1900s, Australians had to pay for their own pharmaceuticals. Some can get free or cheap medicines through public hospitals or friendly social pharmacies, but otherwise, access is limited to those who can afford to pay.

At that time, there were very few effective medicines. But in the 1920s, the development of insulin and penicillin was much more approached to medicines. important.

The Constitution gave the federal government a limited authority to provide health and welfare, which was mainly responsible for the state. After World War II, the federal government wanted to expand this authority, but faced several constitutions. Road block.

In 1946, a rare successful referendum could pass the National Health Law in 1953. This has established the PBS we know today.

How does PBS actually work?

PBS includes the cost of pharmaceuticals prescribed by a doctor. Most of them are distributed in community pharmacy (eg, heart disease treatment, pills and antibiotics), but they can buy more expensive things in public hospitals or professional treatment centers (eg chemotherapy and IVF drugs).

It was there in 2023 ~ 24 years 930 other drugs 5,164 brands listed on PBS have taken $ 17.7 billion for the government.

The government negotiates the price of pharmaceutical companies. Then the pharmacy purchases this medicine from wholesalers or companies.

If the patient fills the prescription at the pharmacy, he pays a joint payment. The government pays a difference between agreed prices and joint payments for pharmacies.

There are two things Co -paymentOne is a concession card holder ($ 7.70) and a general consumer ($ 31.60). If the patient hits the annual expenditure limit (safety net threshold), the joint payment will drop to $ 0 for concessions and $ 7.70 for general consumers.

Overall, patients contribute 8.4% The government pays the remaining costs for the total cost of PBS.

How is the medical price set?

PBS is divided into two categories.

-F1: A new patent protection medicine without competition

-F2: Drugs with several brands including generic.

F1 medicine

In the future Listed The new medicine in PBS goes through the following process.

1. Safety, efficacy and quality are evaluated.

2. Expert panels (including doctors, pharmacists, epidemiologists, health economists, health consumer advocates and pharmaceutical industry representatives) recommend which medicine should be listed on PBS according to the total cost of effectiveness, safety, cost efficiency and drug alternative treatment.

3. If the panel recommends a medicine, the price and details of the list may be further negotiated with the government. (If the panel rejects medicines, the company can modify the application and submit it again.)

4. Finally, the Ministry of Health and Secretary and then the cabinet officially approve or reject the recommendation of the panel. If approved, the drug is listed in PBS.

F2 medicine

Generic medical companies can apply for pharmaceuticals to list other brands in PBS after losing patent protection. When this happens, the medicine goes from F1 to F2. Immediately, it is a Mandatory price discount.

Generic medical companies can offer discounts to pharmacists for PBS list price (for example, 10 people). Then the pharmacist encourages the patient to switch to a cheap medicine.

The company must Please disclose these discounts More prices have occurred in the government.

Is the PBS system unique?

Australia is not special. Many countries use similar evaluations to determine whether the government should pay subsidies to new medicines, including the government, Canadian pharmacy, and New Zealand Pharmacy, including the National Institute for Health and Care Excellence (NIC) in the UK.

There is a small difference, including whether the list of pharmaceuticals is positive (and subsidies) or negative (not subsidized), the list is caused by the central level (Australian PBS, etc.), or the regional level (Canada’s province) or mixture.

The biggest unusual US. Like the pharmaceutical system, the pharmaceutical system is a complex and diversified mix of public and private organizations, including payers such as government agencies, independent organizations, medical service providers and health insurance companies.

What is the benefit of PBS?

PBS allows all Australian patients to access very effective medicines. This contributes to A The expectation is high while maintaining low health care costs. Compared to other developed countries.

This has been achieved by lowering the price for both. F1 and F2 approximately. In doing so, we create a space for funding for other new drugs for the government budget.

Without PBS, taxes or joint payments should increase or raise funds.

Another advantage is to have a level of stadiums for all medicines, and maintains the flexibility of funding for very effective medicines for unmatched patients.

What are the disadvantages of the PBS system?

There are no disadvantages and no risk systems. that PBS disadvantage include:

• Participation in patients with limited processes
• that High frequency recurrence and delay for PBS list
• Companies that do not submit competent medicines for PBS list due to high cost and low rewards
• High quality clinical evidence of pharmaceuticals for treating specific patient groups such as rare diseases and children continues to lack.

Another problem is Lack of medicine. If the PBS registration brand cannot be used due to the supply chain problem, the PBS -listed brand can be provided in full cost to the patient. increase Medical costs can be discouraged by patients It can have a long -term impact on health and health expenditures from filling the necessary prescriptions.

finally, The company claimed Australia’s small market size and low PBS prices can make new pharmaceuticals to bring new medicines to Australia.

PBS is an important part of the Australian health system, making essential medicines cheaper and reducing costs. Like other systems, it is a problem and the debate over how the system should change.

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