Australia Excludes SSRIs From Final TGP Scheme

Australia's Federal Minister for Health and Family Services, MichaelWooldridge, has said the selective serotonin reuptake inhibitors class of antidepressants will be excluded from the new Therapeutic Group Premiums Scheme, which takes effect on February 1, 1998 (Marketletter May 26).

Originally, the government had proposed the establishment of base prices in six classes of drugs which are widely prescribed under the Pharmaceutical Benefits Scheme, namely ACE inhibitors, calcium channel blockers, beta blockers, SSRIs, statins and histamine receptor antagonists. However, in October it was announced that beta blockers would be exempted (Marketletter October 27).

A$26 Million "Less In Savings Over Four Years" While exempting the SSRIs would mean A$26 million ($17 million) less in savings over four years, the TGP scheme would deliver close to the original budget estimate of A$560 million ($366 million) over that period, as competition between manufacturers to be the benchmark drug in each category had lowered costs to the PBS "beyond expectations," said Dr Wooldridge, who added that some firms had dropped their prices to the point where for example, all drugs and brands are fully subsidized in the lipid-lowering therapy group. "It's proof that a little competition can go a long way," he said.