Drug Price Reforms: The New F1–F2 Bifurcation

Australian Prescriber, Vol. 30, No. 6, pp. 138-140, 2007

3 Pages Posted: 25 May 2009

See all articles by Hans Lofgren

Hans Lofgren

Deakin University, Melbourne

Thomas Alured Faunce

Australian National University

Date Written: May 23, 2007

Abstract

Significant changes to the Pharmaceutical Benefits Scheme (PBS) are underway. The Australian Parliament recently passed the National Health Amendment (Pharmaceutical Benefits Scheme) Act 2007. At the core of this Act are new sections (85AB and 85AC) to the National Health Act 1953. These had the effect of dividing, from 1 August 2007, the PBS into two separate formularies – F1 for single brand, mostly patented, medicines and F2 for multiple brand, mostly generic, medicines.

These complex changes aim to 'recognise the importance of world-class life-enhancing drugs to patients', protect patients from higher costs and get better value from market competition among brands of generic drugs. The changes may allow PBS and patient savings through lower priced generics, but their impact on the price of patented medicines is uncertain in our view.

Keywords: Cost-effectiveness, generic medicines, PBS, pharmaceutical regulation

JEL Classification: D46, I18, H41, M37, K31, L65, O34, O31

Suggested Citation

Lofgren, Hans and Faunce, Thomas Alured, Drug Price Reforms: The New F1–F2 Bifurcation (May 23, 2007). Australian Prescriber, Vol. 30, No. 6, pp. 138-140, 2007 . Available at SSRN: https://ssrn.com/abstract=1409020

Hans Lofgren

Deakin University, Melbourne ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia

Thomas Alured Faunce (Contact Author)

Australian National University ( email )

Canberra, Australian Capital Territory 0200
Australia
61 2 61253563 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
52
Abstract Views
590
rank
379,670
PlumX Metrics