Distributional impact of higher patient contributions to Australia's Pharmaceutical Benefits Scheme

Abstract

This paper uses NATSEM's Pharmaceutical Benefits Model to analyse the effects of a hypothetical25 per cent rise in patient contributions to prescribed medicines under Australia's PharmaceuticalBenefits Scheme (PBS). The model, based on microsimulation techniques, is able to provide a muchbroader range of outcomes information, at a much greater level of detail, than is possible withtraditional methods.Higher patient contributions are analysed in terms of their impact on the government to patient splitin PBS costs, as well as the distribution of such costs across age groups, family incomes, family types and36 prescribed medicine types. Also considered are changes in the shares of family disposable incomesspent on prescribed drugs arising from the higher patient contributions.