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Measuring the Progressivity of the Pharmaceutical Benefits Scheme

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  • Rachel J. Knott
  • Philip M. Clarke
  • Emma L. Heeley
  • John P. Chalmers

Abstract

type="main" xml:lang="en"> 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.

Suggested Citation

  • Rachel J. Knott & Philip M. Clarke & Emma L. Heeley & John P. Chalmers, 2015. "Measuring the Progressivity of the Pharmaceutical Benefits Scheme," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 48(2), pages 122-132, June.
    • Handle: RePEc:bla:ausecr:v:48:y:2015:i:2:p:122-132
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    Cited by:

    1. Befikadu L Wubishet & Melissa L Harris & Peta M Forder & Julie E Byles, 2020. "Age and cohort rise in diabetes prevalence among older Australian women: Case ascertainment using survey and healthcare administrative data," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-15, June.
    2. Law, Hsei Di & Marasinghe, Dinith & Butler, Danielle & Welsh, Jennifer & Lancsar, Emily & Banks, Emily & Biddle, Nicholas & Korda, Rosemary, 2023. "Progressivity of out-of-pocket costs under Australia's universal health care system: A national linked data study," Health Policy, Elsevier, vol. 127(C), pages 44-50.
    3. Hua, Xinyang & Erreygers, Guido & Chalmers, John & Laba, Tracey-Lea & Clarke, Philip, 2017. "Using administrative data to look at changes in the level and distribution of out-of-pocket medical expenditure: An example using Medicare data from Australia," Health Policy, Elsevier, vol. 121(4), pages 426-433.

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