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Measuring the Progressivity of the Pharmaceutical Benefits Scheme
Author(s) -
Knott Rachel J.,
Clarke Philip M.,
Heeley Emma L.,
Chalmers John P.
Publication year - 2015
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12103
Subject(s) - pharmaceutical benefits scheme , subsidy , government (linguistics) , distribution (mathematics) , scheme (mathematics) , pharmaceutical policy , public economics , drug , business , pharmaceutical industry , actuarial science , economics , health care , medicine , pharmacology , health policy , economic growth , mathematics , mathematical analysis , linguistics , philosophy , medical prescription , market economy
Through the Pharmaceutical Benefits Scheme, the Australian Government subsidises the cost of a large range of medicines. This study assesses the income‐related distribution of Pharmaceutical Benefits Scheme resources using patient‐level data from Medicare Australia and concentration indices. We find that use of, and government expenditure for, Pharmaceutical Benefits Scheme‐subsidised drugs is progressive in that more resources flow to lower income groups, even after adjusting for differences in medical need, as measured by age, sex, self‐assessed health and clinically assessed comorbidities. Of the major drug classes, cardiovascular drugs contributed substantially to the overall progressivity of Pharmaceutical Benefits Scheme subsidies, accounting for almost 50 per cent .