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Moving towards an Improved Microsimulation Model of the Australian Pharmaceutical Benefits Scheme

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  • Laurie Brown
  • Annie Abello
  • Ben Phillips
  • Ann Harding

Abstract

Finding ways of curbing government expenditure on the Pharmaceutical Benefits Scheme (PBS) while maintaining social equity and access to 'essential' medicines is at the centre of ongoing public debate. This article describes a microsimulation model of the PBS that simulates current and future use and costs of PBS medicines under existing and different PBS policy settings, and estimates the distributional effects of policy changes. The article outlines future developments that will extend the current model to include health outcomes. Adding health outcomes will enable the debate on PBS sustainability to be advanced beyond the prevailing cost-containment mentality to consider not only the costs of pharmaceutical use but also the benefits that result from the use of these medicines. Copyright 2004 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

Suggested Citation

  • Laurie Brown & Annie Abello & Ben Phillips & Ann Harding, 2004. "Moving towards an Improved Microsimulation Model of the Australian Pharmaceutical Benefits Scheme," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(1), pages 41-61, March.
    • Handle: RePEc:bla:ausecr:v:37:y:2004:i:1:p:41-61
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    Cited by:

    1. Sharyn Lymer & Laurie Brown & Ann Harding & Alicia Payne, 2011. "Challenges and Solutions in Constructing a Microsimulation Model of the Use and Costs of Medical Services in Australia," International Journal of Microsimulation, International Microsimulation Association, vol. 4(3), pages 17-31.
    2. Ann Harding & Robert Tanton, 2014. "Policy and people at the small-area level: using micro-simulation to create synthetic spatial data," Chapters, in: Robert Stimson (ed.), Handbook of Research Methods and Applications in Spatially Integrated Social Science, chapter 25, pages 560-586, Edward Elgar Publishing.
    3. Linping Xiong & Xiuqiang Ma, 2007. "Forecasting China's Medical Insurance Policy for Urban Employees Using a Microsimulation Model," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 10(1), pages 1-8.
    4. Xiong Linping & Tang Weidong & Liu Hong, 2011. "Constructing a Basefile for Simulating Kunmings Medical Insurance Scheme of Urban Employees," International Journal of Microsimulation, International Microsimulation Association, vol. 4(3), pages 3-16.
    5. William, Jananie & Loong, Bronwyn & Hanna, Dana & Parkinson, Bonny & Loxton, Deborah, 2022. "Lifetime health costs of intimate partner violence: A prospective longitudinal cohort study with linked data for out-of-hospital and pharmaceutical costs," Economic Modelling, Elsevier, vol. 116(C).

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