The impact of copayments and safety nets on PBS expenditure

Abstract

This article discusses the impact on patients of changes in copayments and safety net thresholds (SNT) within the Pharmaceutical Benefits Scheme (PBS). Trends in the nominal and real values of copayments and SNTs are examined, as are changes in the numbers of types of patients. The relationship between the number of safety net cardholders and copayments and SNTs is estimated. Increases in the number of copayments necessary to reach the safety net threshold restrict the number of patients able to benefit from this provision. Policy for determining the levels of copayments and safety net thresholds needs to be put on a rationale basis in a way similar to the determination of prices for PBS medicines.