Australian 1995-96 Budget Includes PBS Delistings

The 1995-96 budget announced last week by Australia's federal Labor government includes a number of structural reforms which, according to the government, are aimed at ensuring the long-term viability of the Medicare scheme, and producing savings.

Total government expenditures on the human services and health portfolio will increase from A$18.4 billion in 1994-95 to A$19.6 billion ($14.45 billion), according to the budget. To help fund this growth, the Medicare levy will be increased from 1.4% to 1.5%, bringing in estimated revenues of A$230 million ($170 million) during the year. The increase will amount to a rise of 64 cents a week for a person on an average income, estimates the federal Department of Human Services and Health.

Penalties To Cub State Medicare Cost-Shifting Among the cost-saving measures which the government is proposing are the introduction of penalties under the Medicare Agreements to reduce cost-shifting by states, and an agreement between the government and the Pharmacy Guild of Australia to reduce growth pressures in the Pharmaceutical Benefits Scheme. A further A$45 million ($33 million) will be saved over four years by removing from the Scheme some PBS-listed drugs which are also obtainable over-the-counter. The savings to be made from delisting these "discretionary" drugs are forecast at A$7.1 million in 1994-95, rising to A$14.5 million in 1998-99. These products (which are to be delisted in November following advice in the August PBS Schedule) will reportedly include anti-hemorrhoidals for topical use, emollients and protectives, certain topical ointments and sodium citrotartrate powders.