Claims pharmacies overpaid $1.8bn

Pharmacies have raked in $340,000 each in overpayments from the Federal Government for PBS generic drugs since 2010, a Melbourne health economist claims.

The estimate comes as the Rudd Government plans to slice $2 billion from pharmacist funding over the next four years to curb excessive payments,

The alleged overpayments occur when pharmacies receive a set payment from the government for the generics, but then source the drugs at a discount from pharmaceutical companies because of high competition within the generics market.

Under the current system, the government adjusts the prices it pays