Dr Kerryn Phelps, AMA President, Sky TV News

The Government is set to slash $2 billion from the Pharmaceutical Benefits Scheme with standard prescribed drugs to rise to $25.

PBS costs have blown out to $4 billion with pensioners and health care card holders accounting for 80% of the amount.

Joining me on the line now is AMA President, Dr Kerryn Phelps.

Well, doctor, it does appear that the Government is set to cut the PBS system and make us all pay a bit more for the medications that we're prescribed. What's your reaction to that?

PHELPS: Well the medical profession is very concerned with any cutting of the Pharmaceutical Benefits Scheme may have undesired outcomes. That is, that people may not be able to afford their medications, and these would be the sickest people in our community, and that could have devastating effects down the track for their health.

NEWSREADER: But are pensioners and superannuants not in some way quarantined from these cuts? They would still be looked after wouldn't they?

PHELPS: Well the problem is that if there are some drugs that are essential to that person being cut from the Pharmaceutical Benefits Scheme they could practically become unaffordable for those people and that would be a serious concern. There are obviously alternative medications but you don't want to just have drugs on the PBS because they're cheap. We want to have the most effective, the most safe, the most tolerated drugs on the Pharmaceutical Benefits Scheme so that people have the best outcome.

Any changes to the Pharmaceutical Benefits Scheme must be on the basis of evidence of patient benefit and not on bureaucratic bottom line.

NEWSREADER: Well there was a suggestion earlier this year that perhaps some form of means testing might be introduced. Would you favour that approach?

PHELPS: I suppose we do have a form of means testing already in place with pensions, health card holders, who get substantial … recommended to doctors ought to be on the basis of the evidence for patients.

NEWSREADER: Dr Phelps, thanks very much - we're having a little bit of trouble hearing you at times there because you're obviously on a mobile phone, and it was just breaking up a little bit, but thank you very much indeed for your time this morning.

PHELPS: Thank you, John.

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