Public feels pain of drug deferrals

All government subsidies to industry are keenly contested and carefully scrutinised, none more so than the Pharmaceutical Benefits Scheme. In 2009-10, the cost of publicly subsidising prescription drugs reached $8.4billion (a 9per cent increase on the previous year), and while this enabled millions of Australians to access drugs that otherwise would have beyond their financial reach, it proved too much of a painful experience for the Federal Government.In an effort to rein in the expenditure growth, the Federal Government struck a deal with the pharmaceutical industry last year to cut $1.9billion from the price it pays for drugs over the next four years. The companies believed there was a quid pro quo: the Government would look more leniently on the listing of new drugs on the PBS. Earlier this year, however, the Government flagged its intention to restrict the number of new medicines to be listed on the PBS until the federal budget returned to surplus in two years' time.Recommendations for listing are made by the Pharmaceutical Benefits Advisory Committee. Traditionally these have been passed without demur by federal cabinet, though the listing of more expensive drugs have been delayed on occasion. But in March, Health Minister Nicola Roxon said that cabinet would defer new drug listings until the budget was back in the black.So far, seven recommendations by the committee have been deferred: the pharmaceutical industry claims that as a consequence millions of Australians have being unfairly denied access to new drugs, while the Consumers Health Forum of Australia has accused the Government of second-guessing the committee and politicising the scheme.That both groups want the deferrals policy overturned shows the PBS process is entirely political, and always has been. More impartial observers will sympathise with MsRoxon's claim that the decision to defer was a regrettable but necessary budget priority, and that this was offset to some degree by the fact that those recommendation that save lives or offer a treatment where none exists will continued to be approved for listing.