Broken PBS policy wastes $320m

Australia wastes more than $300 million a year on a “broken” PBS drug-pricing system overseen by the pharmaceutical lobby, a new report from the Grattan Institute says.

The report takes aim at the so-called therapeutic group premium policy, which was adopted in 1998 to stop the government losing cash on over-priced drugs under the PBS.

The policy has become so diluted under the influence of Medicines Australia, the pharmaceutical manufacturers’ lobby group, that it now results in a loss of $320 million a year, the report says.