Fed: Fears low cost drug scheme to be scrapped groundless: Govt

AAP General News (Australia)
12-01-1999
Fed: Fears low cost drug scheme to be scrapped groundless: Govt

CANBERRA, Dec 1 AAP - Fears the government was preparing to scrap low-cost subsidised
drugs in a review of the Pharmaceutical Benefits Scheme (PBS) were groundless, a spokeswoman
for Health Minister Michael Wooldridge said today.

The Sydney Morning Herald today reported the PBS scheme was to be radically overhauled
following intense lobbying by pharmaceutical companies.

The industry wanted the scheme scrapped because it forced them to sell drugs to the
government more cheaply than in the US and Europe, the paper said.

It said the industry was planning to use the PBS review to press for the end of the
scheme, forcing drug prices up for both consumers and the government.

But Dr Wooldridge's spokeswoman accused the paper of running an irresponsible scare
campaign and said the idea government would force up its own costs defied commonsense.

"I would say that this story is a beat-up and it's a beat-up that's quite thoughtless
because it does scare people who are quite reliant of PBS now," she told AAP.

"Why would the government have a review to actually force up drug prices for both the
people it's working on behalf of - consumers - and its own costs?

"That's just laughable."

The spokeswoman said the PBS had been in place since 1964 and was overdue for a review,
given changes in the health care sector.

"Given that nowadays drugs are actually a much larger part in our health care system
than they were back then, it's basically time to have a look at it, time to make sure
that we're doing it the best way and getting the best value for taxpayers and governments,"

she said.

But she could not understand how the paper had come from that to claiming cut-price
medicine was at risk.

"It's quite shocking," she said.

The spokeswoman said Dr Wooldridge had so far only informally considered the PBS review
and terms of reference were yet to be decided.

She also dismissed speculation the review was the result of pressure by the pharmaceutical
companies.

"There's always lobbying in the health care industry and the paper hasn't proved that
there's any more lobbying now than at any other time," she said.

"Lobbying by drug companies is something that happens nearly every morning."

AAP rft/mfh/apm

KEYWORD: PBS

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