Australia's pharmaceutical benefits system: flawed but improving, and better than anywhere else

Abstract

The composition and role of the Pharmaceutical Benefits Advisory Committee (PBAC) has been the subject ofacrimonious debate through the media in recent months, with accusations of government subjugation to strongindustry lobby groups at the future expense of the Australian taxpayer. An understanding of the issues at thismore political level is helped by appreciation of the rationale for the current process of listing drugs forreimbursement on the Pharmaceutical Benefits Scheme (PBS). I will try to give the non-economist reader anoverview of the system and share some perceptions of the strengths and weaknesses of what is fundamentally agood system.