Means test push for drugs scheme

PRESCRIPTION medicines may cost more under proposals to overhaul the $4.5 billion subsidy scheme.

Proposals to means test the scheme and restrict access to subsidised drugs have been put to Health Minister Senator Kay Patterson.

The high cost of breakthrough new drug treatments is forcing the Government to consider a radical overhaul of the scheme.

One proposal before the Government is that the subsidy scheme be means tested, those on higher incomes may have to pay more than the current $22.40 charge for their prescription drugs.

The pharmaceutical industry is proposing a new $200 a year pharmaceutical levy on all Australians similar to the 1.5 per cent Medicare levy.

Private insurers may also have to take on a greater role in helping to spread the cost of drugs, the Minister's office was told at a forum held in Sydney yesterday.

The scheme which subsidises the cost of most prescription medicines from Panadol to expensive cancer treatments is struggling to pay for expensive new medicines.

Science may invent a cure for cancer but in its current state our pharmaceutical benefits subsidy scheme may not be able to pay for it.

The Federal Government's drug subsidy scheme, which requires patients to pay $22.40 for a script ($3.60 pensioners) suffered a $400 million blowout last year.

A breakthrough new arthritis treatment, Enbrel, has been denied subsidies because at $18,000 a year it was considered too costly.

To contain costs the Federal Government last month refused to subsidise the impotence treatment Viagra and removed the subsidy from other impotence treatments.

A new treatment for leukaemia, Glivac, which costs up to $80,000 per year per patient has been subsidised but can only be used after all other treatments have failed.

Former health minister Dr Michael Wooldridge and former finance minister John Fahey attended the forum in Sydney yesterday which was addressed by Health Minister Kay Patterson's chief of staff Barbara Hayes.

2UE radio announcer Ben Horgan who suffered from juvenile rheumatoid arthritis, has had both his knees and hips replaced and spent nearly two years in hospital.

"These new medicines are so expensive that the average person can't afford them," he told the forum.

"We now have the technology, so we need to be able to make it available to the people who need it most, who generally are the people who can't afford it.

"There are times when I was young when I would rather have been dead than put up with the pain.

"(JRA) doesn't kill you, but it does take away your life."

Angela McAvoy, 55, managing director and founder of the Australian Crohn's & Colitis Association said health reform is needed "so consumers get access to the new drugs".

She said a new drug Remicade will ensure "a lot of teenagers won't end up like me".


	Government News Index site index HOME Means test push for drugs scheme By SUE DUNLEVY and ALISON REHN Daily Telegraph 08mar02 PRESCRIPTION medicines may cost more under proposals to overhaul the $4.5 billion subsidy scheme. Proposals to means test the scheme and restrict access to subsidised drugs have been put to Health Minister Senator Kay Patterson. The high cost of breakthrough new drug treatments is forcing the Government to consider a radical overhaul of the scheme. One proposal before the Government is that the subsidy scheme be means tested, those on higher incomes may have to pay more than the current $22.40 charge for their prescription drugs. The pharmaceutical industry is proposing a new $200 a year pharmaceutical levy on all Australians similar to the 1.5 per cent Medicare levy. Private insurers may also have to take on a greater role in helping to spread the cost of drugs, the Minister's office was told at a forum held in Sydney yesterday. The scheme which subsidises the cost of most prescription medicines from Panadol to expensive cancer treatments is struggling to pay for expensive new medicines. Science may invent a cure for cancer but in its current state our pharmaceutical benefits subsidy scheme may not be able to pay for it. The Federal Government's drug subsidy scheme, which requires patients to pay $22.40 for a script ($3.60 pensioners) suffered a $400 million blowout last year. A breakthrough new arthritis treatment, Enbrel, has been denied subsidies because at $18,000 a year it was considered too costly. To contain costs the Federal Government last month refused to subsidise the impotence treatment Viagra and removed the subsidy from other impotence treatments. A new treatment for leukaemia, Glivac, which costs up to $80,000 per year per patient has been subsidised but can only be used after all other treatments have failed. Former health minister Dr Michael Wooldridge and former finance minister John Fahey attended the forum in Sydney yesterday which was addressed by Health Minister Kay Patterson's chief of staff Barbara Hayes. 2UE radio announcer Ben Horgan who suffered from juvenile rheumatoid arthritis, has had both his knees and hips replaced and spent nearly two years in hospital. "These new medicines are so expensive that the average person can't afford them," he told the forum. "We now have the technology, so we need to be able to make it available to the people who need it most, who generally are the people who can't afford it. "There are times when I was young when I would rather have been dead than put up with the pain. "(JRA) doesn't kill you, but it does take away your life." Angela McAvoy, 55, managing director and founder of the Australian Crohn's & Colitis Association said health reform is needed "so consumers get access to the new drugs". She said a new drug Remicade will ensure "a lot of teenagers won't end up like me". Index