US medical giants say Australia’s Pharmaceutical Benefits Scheme is an “egregious and discriminatory” program that Trump should target in the next wave of tariffs.

US medical giants say Australia’s Pharmaceutical Benefits Scheme is an “egregious and discriminatory” program that Trump should target in the next wave of tariffs.

Archived version: https://archive.is/20250319050457/https://www.theage.com.au/politics/federal/big-pharma-plea-to-trump-to-punish-australia-for-cheaper-medicines-20250319-p5lko1.html

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  • Mothra@mander.xyz
    0·
    5 months ago

    I need an ELI5 on this. I’m really dumb when it comes to politics and its jargon. I’ve read the article but I’m not sure I understand. Let’s see: Australia buys medicine from US and sells it a a really low price as part of its healthcare support scheme. So US now will increase these prices as a penalty of sorts? So Australia is forced to increase prices domestically? Is that right?

    • pntha@lemmy.world
      1·
      5 months ago

      https://en.wikipedia.org/wiki/Pharmaceutical_Benefits_Scheme

      The Pharmaceutical Benefits Scheme (PBS) is a program of the Australian Government that subsidises prescription medication for Australian citizens and permanent residents, as well as international visitors covered by a reciprocal health care agreement.
      …
      The cost of a medication is negotiated between the government, through the Department of Health, and the supplier of the drug. The agreed price becomes the basis of the dispensed price of the medication which is negotiated between the government and the Pharmacy Guild of Australia under the current Community Pharmacy Agreement. The dispensed price includes the wholesaler’s markup, pharmacist’s markup, and a dispensing fee. Pharmacies purchase PBS-listed drugs from the wholesaler or supplier, and claim the difference between the dispensed price and the patient co-payment contribution from Medicare Australia.