Question 1

The purpose of the Pharmaceutical Benefits Scheme (PBS)is:&#10;A)the dispensing of cheap prescriptions by local pharmacies for use by patients at home&#10;B)an insurance scheme that covers the cost of medicines&#10;C)to provide patients with medicines when they are discharged home from hospital&#10;D)part of the Australian government's National Medicines Policy to provide safe,quality medicines in a timely and affordable manner

Accepted Answer

The PBS is part of the Australian government's National Medicines Policy,with the stated aims of (1)providing timely access to the medicines that Australians need,at a cost individuals and the community can afford; (2)providing medicines that meet appropriate standards of quality,safety and efficacy; (3)ensuring quality use of medicines;and (4)maintaining a responsible and viable medicines industry.

Question 2

Reference pricing can be defined as:&#10;A)a price that is usually less than the most expensive option which is expected to paid by the consumer&#10;B)a process to adjust the price of pharmaceuticals in order to make it cheaper for both the government and consumers&#10;C)a means for the government to make more money by purchasing cheaper medicines and then selling them on to consumers at a higher price&#10;D)the way pharmaceutical manufacturers create newer,cheaper but less effective drugs which are then made available to governments as generic options

Accepted Answer

Up until the mid-2000s,reference pricing was used to adjust the price of pharmaceuticals listed on the PBS.This involved PBS subsidies being set at the level of the lowest-priced pharmaceutical in a therapeutically equivalent group.

Question 3

Generic medicines become available when:&#10;A)the production cost becomes more affordable to the manufacturer&#10;B)the original patent has expired,allowing other drug manufacturers to produce it at a cheaper cost&#10;C)it can be manufactured in plain packaging,therefore saving money&#10;D)Consumers are no longer wanting to buy brand-name medicines

Accepted Answer

Generic drugs only become available when the patent on a drug has expired,allowing other drug manufacturers to copy the drug.Generic drugs are normally much cheaper than the original drug,as these manufacturers only need to cover the cost of production (which is normally a small fraction of the original price)and not the cost of the drug's development.

Question 4

An important feature of the PBS is that:&#10;A)it is free for all Australians irrespective of what welfare benefit they receive&#10;B)all Australians contribute to the scheme through general taxation&#10;C)the scheme remains uncapped as the government is not obliged to implement advice it receives from the PBAC&#10;D)it remains in place because Australia has a world-class system for providing medicines to its citizens

Accepted Answer

An important feature of the PBS is that it is uncapped - in that the government does not allocate a fixed budget to pharmaceuticals - but at the same time the government is not obliged to implement the advice of the Pharmaceutical Benefits Advisory Committee (PBAC).

Question 5

The similarity between the PBS and Medicare is:&#10;A)both are government services and organisations&#10;B)both are schemes designed to help Australians who are disadvantaged and have health care cards&#10;C)both are financed at least partially through general taxation&#10;D)both are schemes eligible for those aged pensioners who do not have self-funded superannuation to help them buy medicines and health care

Accepted Answer

The PBS can be characterised as an insurance scheme that is financed through general taxation.In this respect it has some similarities with Medicare,which is funded from both a special levy and general taxation.

Question 6

In order to contain the cost of the PBS,the government can:&#10;A)reduce drug prices,particularly those of generic medicines&#10;B)reduce or alter the types of medicines prescribed by general practitioners&#10;C)make consumers pay more for their medicines&#10;D)all of the above

Accepted Answer

One strategy,proposed in the 2014 Budget,is to reduce PBS subsidies by increasing patient contributions,as a way of shifting some pharmaceutical costs from the government to consumers.Another approach is to reduce or alter the types of drug prescribed.The final option to contain the growth in PBS expenditure is to reduce drug prices,particularly of generic medications.

Question 7

A co-payment is defined as:&#10;A)the fixed amount that patients have to pay for all dispensed medicines&#10;B)the shared cost between the pharmacist and patient for the payment of a dispensed medicine&#10;C)a voluntary donation made for a service or product&#10;D)a compulsory payment made for a service or product.

Accepted Answer

Each time a medication listed on the PBS is dispensed,the pharmacist is paid an amount determined by the government,and the patient shares this cost through what are often referred to as 'co-payments'.

Question 8

Which of the following can be a long-term challenge for the PBS?&#10;A)Increased population numbers due to an ageing population&#10;B)Fewer retirees who have to rely on their own savings (superannuation)&#10;C)Rising costs to government,which will mean having to increase funding by increasing taxes&#10;D)Having to reduce expenditure on other programs as the government can't afford to subsidise all medicines

Accepted Answer

Programs such as the PBS represent a long-term challenge for government as real expenditure (i.e.spending adjusted for inflation)is often increasing faster than other government programs and affects receipts from taxation.Rising spending over time means that a government either needs to increase the rate of taxation or must spend less on other government programs in order to continue to fund rising health care expenditure.

Question 9

The purpose of price disclosure is:&#10;A)greater transparency through the government setting a known price for medicines to be sold by drug companies and purchased by pharmacies&#10;B)to collect information on the price of medicines so that the government can get the best price for consumers&#10;C)to save money - drug companies know that they have to sell cheaper medicines to pharmacies which consumers then purchase&#10;D)to reduce drug company profits by having them charge a lower price for many previously more expensive medicines

Accepted Answer

The price disclosure system is based on the government setting a price at which drug companies sell medications to pharmacies,rather than directly regulating prices.The stated purpose of these reforms to the pricing of generics was to address the problem that Australia paid much more for generics than many other countries.

Question 10

The difference between the PBS and Medicare is:&#10;A)the PBS is not available to all Australians,only those who receive welfare payments&#10;B)one is for health care (Medicare)and the other is for medicines (PBS)&#10;C)under the PBS pharmacists are unable to run a small business because they have to work for large chains&#10;D)unlike doctors,pharmacists cannot charge above the pre-determined maximum for the cost of medicines

Accepted Answer

For pharmaceuticals listed on the PBS,the patient normally pays all the costs of a drug up to a pre-defined maximum (i.e.the level of the deductible)with the government covering the rest.

Deck 8: The Pharmaceutical Benefits Scheme: Recent Trends and Options for Reform