Shocking comparison of medicine costs between the US and Australia
Doctor Michael broke down the price discrepancies between five common medications in the United States, Australia and Scotland to his more than 500,000 followers on TikTok.
Watched more than 2.7 million times, he started the video on a salbutamol inhaler, a puffer for asthma sufferers, costing about A$10, while it is US$50 in the states.
Atorvastatin, a medication to lower cholesterol and prevent cardiovascular disease, is priced as little as A$6.70 for 30 tablets in Australia, compared to US$2,628 for Americans.
Next was Omeprazole, used for treating stomach acid, heartburn and reflux, costs A$6 in Australia and up to US$326 in the US.
While Azithromycin, an antibiotic to treat bacterial infections, can set Americans back US$155, while many Aussies pay just A$7.70.
However, the biggest shock was Sofosbuvir, which treats hepatitis C, with a 12-week treatment roughly costing an eyewatering US$84,000 without insurance and discounts.
It equates to about US$1,000 a tablet, multiple US health websites reported.
Meanwhile, it costs about $31 for a packet of 28 in Australia on the Pharmaceutical Benefits Scheme (PBS).
There are no costs involved for all five medications mentioned in Scotland, Dr Michael said.
'Oh my god,' he said in reaction to the five-figure cost.
'See, in Scotland and Australia there's a socialist healthcare system which means that the government subsidises the cost of medications.'
Commenters from around the world were left shocked.
'Aussie here, happy to pay extra tax to know that everyone can get medical care. It's a human right ffs,' one person said.
'America is one gigantic scam,' added another.
'People in Australia cry over tax we have to pay,' added a third 'On the other hand, free hospitals, cheap medicine, cheap doctors, family tax benefit, aged care, unemployment benifits, aged pension, carer payments, meternity leave, farm house allowances, disability support, youth allowance. The list goes on. Australia looks after its citizens.'
The medical practitioner's video came after President Donald Trump threatened a 200 per cent tariff on imported drugs, one of Australia's largest exports to the US.
The commander-in-chief this week warned he may hike it a further 50 per cent.
'We'll be putting (an) initially small tariff on pharmaceuticals, but in one year, one-and-a-half years, maximum, it's going to go to 150 per cent,' he said in a CNBC interview on Tuesday.
'And then it's going to go to 250 per cent because we want pharmaceuticals made in our country.'
Trump's fresh tariff threat
It is feared President Trump's war on Big Pharma could have monumental consequences in Australia that could see billions wiped from the economy and the PBS caught in the crossfire.
However, The Australian Institute's chief economist, Matt Grudnoff, urged caution and argued the leader of the free world himself was likely unsure of what he is going to do on pharmaceutical tariffs 'yet'.
'Some of the numbers he throws around, we know that even after well over six months now of talk about tariffs, he really hasn't nailed down exactly what they're going to be anywhere. This is something that I think will be off in the future,' Mr Grundoff told news.com.au.
He also stressed American consumers will be hit harder than Australians if any tariffs were to be applied, but Mr Grudnoff said the timing of it could be around the US midterms.
'If Trump imposes tariffs that increase the price of medicines in the US right before the midterm elections... I can't see that happening for political reasons if nothing else,' he said.
'I think that Republicans facing re-election will be very keen for that not to happen and also Trump has been... talking about decreasing medicine prices and (if) medicine prices go up, that might be quite difficult politically for him.'
He said any levies on pharmaceuticals could have a 'slightly larger impact' compared to other industries and affect some of the largest medicine companies in Australia.
The Albanese government ruled out making changes to the PBS to appease President Trump who has been urged to overhaul the 'discriminatory' scheme that 'undermines' US exports.
Any alteration may drive up prices of medicines in Australia.
'To be very clear, there seems to be very strong bipartisan policy in Australia (on) both sides that no, they're not going to use the PBS as a bargaining tool,' Mr Grudnoff said.
'There has been no indication yet that the Australian government would reduce pharmaceutical tariffs for higher US drug prices in Australia. I think they'd be crazy to do it. I don't think our trade with the US in pharmaceutical goods is anywhere near big enough to warrant the pain that would be caused in Australia by higher drug prices.'
Prime Minister Anthony Albanese has previously said the PBS is 'not up for negotiation'.
Last week the government introduced legislation to bring down the cap of eligible medicines on the PBS from $31.60 down to $25 from January 1 next year.
Labor said it will save Australians about $200 million a year.
PBS wait times a big concern, peak body warns
The threat of President Trump's tariffs are less of a concern compared to the long wait times for medicines to be put on the PBS, a peak pharmaceutical research industry has said.
Medicines Australia chief Liz de Somer warned Australians could die waiting for new life-saving medicines to be listed on the scheme
Patients and advocacy groups say the complex process and excessive red tape involved is leading to unnecessary and long delays.
A report this week found the average wait time from when a medication is approved by the Therapeutic Goods Administration to being listed is 22 months.
It would see drugs costing hundreds to thousands of dollars drop to just over $30.
'Patients will die waiting for medicines to be listed,' Ms de Somer said.
'And this will have a far greater effect on the Australian system than anything else.'
A review of the PBS system was completed by the Health Technology Assessment and handed to the federal government last year, making a series of recommendations to improve speed.
Health Minister Mark Butler has said the review will help guide the Albanese government on future decisions on reform.
'The Albanese government is continuing to make medicines available to Australian patients faster and cheaper,' he said.
'We know patients want faster access to cutting-edge medicine and treatments.
'That's why our government is working through the recommendations of the HTA review, so Australians can get faster access to the best medicines and therapies, at a cost that patients and the community can afford.'
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