A new report released today shows the Pharmaceutical Benefits Scheme (PBS) is proving a key driver to reducing overall Government spending on health.

Medicines Australia, CEO, Tim James welcomed the Australian Institute of Health and Welfare (AIHW) report Health Expenditure Australia 2012-13: analysis by sector.

“It’s no surprise that the PBS is one of the main drivers of efficiency in the health system. Even back in September the AIHW reported that total Australian Government health expenditure fell in 2012–13, with the PBS acting as one of the main drivers of that decrease,” Mr James said.

“Today’s AIHW report reconfirms that the PBS is a star performer at keeping health spending under control. It’s clearly sustainable, to the point it is having an impact on the wider health system, and so there’s no need for further savings measures in the future.”

The report also noted wider health spending growth is at its slowest since the 1980s, slowing to record levels, and now three times lower than the average growth over the last decade (5.1 per cent). Total spending on health goods and services in Australia was estimated at $147.4 billion in 2012-13 (9.67% of GDP).

In 2012-13, governments funded $100.8 billion of total health expenditure in Australia. This was 1.6 percentage points lower than the previous financial year, the largest reduction of the decade.

For more details, go to: http://medicinesaustralia.com.au/2014/12/19/australian-government-spending-on-health-driven-down-thanks-to-pbs/#more-12873