Australia's National Medicines Policy aims to 'meet medication and related needs, so that both optimal health outcomes and economic objectives are achieved for

Australia's National Medicines Policy aims to 'meet medication and related needs, so that both optimal health outcomes and economic objectives are achieved for Australians'.3 In response to the rising cost of the Pharmaceutical Benefits Scheme (PBS), the Australian Government has introduced policies to encourage the use of generic drugs. Probably the most significant of these to date have been the Brand Premium Policy (1990) and the Brand Substitution Policy (1994).4 Under the Brand Premium Policy, pharmaceutical manufacturers were allowed to set their own prices for the different brands of the same medicine. The PBS subsidy was determined by the lowest priced brand, the so-called 'benchmark brand'. Patients must pay the difference between the price of the dispensed drug and the benchmark brand. The Brand Substitution Policy allows pharmacists to substitute bioequivalent generic medicines without seeking advice from prescribers, unless otherwise indicated on the prescription. http://www.australianprescriber.com/magazine/27/4/80/1 http://www.australianprescriber.com/magazine/27/4/80/1