[lbo-talk] Poll: 67% Favor Single Payer

Bill Bartlett billbartlett at dodo.com.au
Sat Sep 18 08:13:38 PDT 2004


At 10:25 AM -0400 18/9/04, Jon Johanning wrote:


>The pharmaceuticals are indeed a problem. Even in countries with
>national health systems, AFAIK, the pharma companies are private.
>But we can't get socialism all in one leap.

In Australia, the price of most pharmaceuticals are determined by the Pharmaceutical Benefits Scheme (PBS) a universal subsidy of all prescription medicines. Under the PBS there is a standard price for all prescriptions (about $27 I think) except that pensioners and others on low incomes pay about $6. (I haven't had much recent experience personally, so I may be a bit out of date.)

The PBS determines the price the government pays the pharmaceutical companies for drugs which it decides to list under the scheme, according to a formula based on the utility of the drug, compared to other treatments. The companies can take it or leave it of course (its a free country) but although they moan a lot, they always take it.

It works fine, although it costs the government a great deal of money to subsidise all prescription drugs. So pharmaceuticals aren't a problem in countries with a national health system.

Bill Bartlett Bracknell Tas



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