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The potential for tobacco control to reduce PBS costs for smoking‐related cardiovascular disease
Author(s) -
Hurley Susan F,
Scollo Michelle M,
Younie Sandra J,
English Dallas R,
Swanson Maurice G
Publication year - 2004
Publication title -
medical journal of australia
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.904
H-Index - 131
eISSN - 1326-5377
pISSN - 0025-729X
DOI - 10.5694/j.1326-5377.2004.tb06263.x
Subject(s) - subsidy , environmental health , tobacco control , medicine , psychological intervention , health economics , public health , economics , nursing , psychiatry , market economy
Objective: To estimate Pharmaceutical Benefits Scheme (PBS) subsidies for drugs to treat smoking‐related cardiovascular disease (CVD) in 2001–02, and over the period of the government's Intergenerational Report (IGR), assuming current smoking prevalence rates and a 5% absolute reduction. Design and setting: An Australian epidemiological study, using prescribing data, aetiological fraction methodology, and IGR trends. Main outcome measures: Estimated smoking‐related PBS subsidy costs in 2001–02 and predicted cumulative subsidies until 2041–42, under current and reduced smoking prevalence assumptions. Results: The PBS costs of smoking‐related CVD in 2001–02 were $126 million, 9.77% of the cost of drugs for CVD and 2.96% of total PBS subsidies. The cumulative difference in these costs over the 40‐year period with a 5% drop in smoking prevalence was predicted to be $4.5 billion, a 17% reduction. The saving would be $1.14 billion discounting future costs at 5% per year. Conclusions: Further investment in tobacco control interventions could curb the increasing cost of the PBS and contribute to government efforts to ensure the viability of Australia's healthcare‐financing programs. The net present value of a campaign to reduce smoking prevalence was estimated at $1 billion, with an internal rate of return of 33%.