The government is wasting $260 million every year because it is ignoring advice that it is paying too much for the most commonly prescribed drug in Australia. Health economists and consumer groups say the government must tackle the high prices Australia pays for medicines compared to countries such as Britain and New Zealand in order to reign in spiralling health costs. Last week a Grattan Institute report found Australia was facing 10 years of budget deficits, primarily driven by rising health costs. Despite this, the price of the cholesterol-busting drug atorvastatin, commonly sold under the name Lipitor, has remained far above the upper limit set by the Pharmaceutical Benefits Advisory Committee. The chief executive of the Consumer Health Forum, Carol Bennett, said patients would end up missing out on new drugs or paying higher out-of-pocket costs if money kept being diverted towards overpriced medicines. ''The cost of medicines that the taxpayer foots the bill for is absolutely fundamental to ensuring stability in our health system,'' she said. ''If the cost continues to rise, we are going to have to forgo other things.'' Advertisement Philip Clarke, a professor of health economics at the Centre for Health Policy, Programs and Economics at … Continue reading
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