Australia's Rx drug bill to rise 600% in 40 years

Despite reducing its estimate of prescription drug cost rises, Australia's Treasury has forecast that, by 2046, government spending on drugs will rise six-fold to reach A$2,200 per person each year. The revised figure is about 25% lower than the government department's initial calculation, but includes the impact of greater generic drug prescribing.

The findings come in Australia's latest intergenerational report, which also examines the impact of demographic changes on other welfare programs, including health care, child benefits and unemployment payments.

Treasurer Peter Costello has ruled out drastic changes to the health care funding system, according to the Brisbane Times, even though government spending on health care is expected to rise at 4.4% annually, or nearly three times the entire economy's growth rate when adjusted for inflation.