04.09 Pharmaceutical Benefits Scheme

After registration, drugs are available at full cost. Only drugs that accepted into the Pharmaceutical Benefits Scheme (PBS) are subsidised as part of Medicare. Before acceptance onto the PBS, a pharmacoeconomic analysis is done. This analysis weighs up the benefits of the drug against the cost to the government (Medicare). Broadly speaking, they are asking “are you worth it”. One of the drugs discussed extensively in the press recently is Herceptin (trastuzumab). Trastuzumab is very useful in certain types of breast cancer. However, the full cost is $60,000/year. Initially, women with this type of breast cancer could only have the treatment, if they paid for it. Under the PBS, trastuzumab is $33/prescription.