The potential for tobacco control to reduce PBS costs for smoking-related cardiovaccular disease

Hurley, Susan F., Scollo, Michelle M., Younie, Sandra, English, Dallas R. and Swanson, Maurice G. 2004, The potential for tobacco control to reduce PBS costs for smoking-related cardiovaccular disease, Medical journal of Australia, vol. 181, no. 5, pp. 252-255.

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Title The potential for tobacco control to reduce PBS costs for smoking-related cardiovaccular disease
Author(s) Hurley, Susan F.
Scollo, Michelle M.
Younie, Sandra
English, Dallas R.
Swanson, Maurice G.
Journal name Medical journal of Australia
Volume number 181
Issue number 5
Start page 252
End page 255
Publisher Australasian Medical Publishing
Place of publication Glebe, NSW
Publication date 2004
ISSN 0025-729X
Summary Objective: To estimate Pharmaceutical Benefits Scheme (PBS) subsidies for drugs to treat smoking-related cardiovascular disease (CVD) in 2001-02, and over the period of the government's Intergenerational Report (IGR), assuming current smoking prevalence rates and a 5% absolute reduction.

Design and setting: An Australian epidemiological study, using prescribing data, aetiological fraction methodology, and IGR trends.

Main outcome measures: Estimated smoking-related PBS subsidy costs in 2001-02 and predicted cumulative subsidies until 2041-42, under current and reduced smoking prevalence assumptions.

Results: The PBS costs of smoking-related CVD in 2001-02 were $126 million, 9.77% of the cost of drugs for CVD and 2.96% of total PBS subsidies. The cumulative difference in these costs over the 40-year period with a 5% drop in smoking prevalence was predicted to be $4.5 billion, a 17% reduction. The saving would be $1.14 billion discounting future costs at 5% per year.

Conclusions: Further investment in tobacco control interventions could curb the increasing cost of the PBS and contribute to government efforts to ensure the viability of Australia's healthcare-financing programs. The net present value of a campaign to reduce smoking prevalence was estimated at $1 billion, with an internal rate of return of 33%.

Language eng
Field of Research 111799 Public Health and Health Services not elsewhere classified
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2004 The Medical Journal of Australia
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Document type: Journal Article
Collections: Faculty of Health
School of Health and Social Development
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