Drug subsidy list pruned

Press, 8 October 1987, Page 3

Drug subsidy list pruned

A number of non-thera-peutic drugs including llnaments, laxatives, and anti-histamines will be removed from the Govern-ment-subsidised drug schedule from November 1, _ -• The manager for medicines and benefits at the Health Department, Mr Ken Swann, Said yesterday that the removal of the drugs was a costcutting measure. “The Government wanted to save money on the pharmaceuticals benefit — the total savings will be about $lO million a full year.” « . The drugs * removed from the schedule could be divided into two broad categories, said Mr Swann. The first grbup included linaments, laxatives, and anti-histamines that could be bought over the counter without a doctor’s prescription. The second group included anaesthetics, methylated spirits, intravenous fluids, and contrast media — items traditionally supplied to private hospitals free of charge. Mr Swann said that the; price paid by the consumer for drugs over the counter was unlikely to increase. “Our contention is, given that you don’t need a doctor’s prescription

any more, there ought to be greater competition between those, selling to pharmacists. . “We’re not depriving the patient because they don’t need to go to a doctor to get a prescription. They’re saving the doctor’s charge and can use that money to buy from pharmacies.” The .chief executive of the Southern Cross Health Group, Mr Peter Smith, said yesterday that an operation was likely to cost about $lOO more because hospitals would now haVe to pay for many items including anaesthetic and intravenous fluids. “As far as we are concerned, the Government put the knife into private surgery from August 1 when it removed the private hospital subsidy. As if that wasn’t bad enough it is now twisting the knife.” The increased surgery costs would have a flowon effect Into health insurance premiums, said Mr Smith. Premiums could not be increased until June so health insurance companies would have to bear the brunt of the increased costs until then, he said. “Altogether it’s not a good picture. The Government is trying; to neutralise the difference between public and private surgery, but they are neutering us.”