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Pensions & Benefits

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This page contains a summary of the various benefits and pensions available to people living with HIV/AIDS and their carers. The information is based on the Department of Social Security (DHSS) material, which was current as at January 1997.

If you receive a Disability Support Pension, you are entitled to ask to speak to a Disability Support Officer when dealing with the Department of Social Security. Positive People Victoria maintains a list of these officers within the regions, so ask for them by name. If you find the names have changed, please let us know.

WARNING!! If you are in receipt of any benefits and are planning overseas travel, check with the DHSS. We know of some instances when people on Disability Support Pensions had payments cut for failing to notify the Department and obtaining a Departure Certificate!!! Read the fine print on your pension details notification.

Disability Support Pension
Sickness Allowance
Mobility Allowance
Carer Pension
Pharmaceutical Benefits Scheme (PBS) and the Safety Net.
List of DSS Regional Disability Support Officers

Disability Support Pension

Who can claim:
People who can't work full-time or be retrained for at least two years, because of a physical, psychiatric or intellectual disability. Must have 10 years Australian residency, unless inability to work occurred in Australia. Income/Assets test applied.
Benefit:
$346.40 per fortnight (adult, single, no dependents)
Plus $5.40 per fortnight Pharmaceutical Allowance
Entitled to Pensioner Concession Card.
Telephone: 13 2300 to register intent to lodge claim.
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Sickness Allowance

Who can claim:
People who can't do their job or study because of a temporary illness or injury, have no paid sick leave and have a job or study to return to. Income/Assets Test applied.
Benefit:
$320.20 per fortnight (adult, single, no dependents)
Plus $5.40 per fortnight Pharmaceutical Allowance
Entitled to Health Care Card.
Telephone: 13 2468
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Mobility Allowance

Who can claim:
People who aged 16 or over who can't use public transport without substantial help, who are doing at least 8 hours per week of work, training or voluntary work. Also payable to people looking for work. No Income/Assets Test applied.
Benefit:
$56.50 per fortnight. Not payable if sales tax exemption on new motor vehicle received in previous two years. If not on a pension, Health Care Card given.
Telephone: 13 2300
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Carer Pension

Who can claim:
People caring full-time for a person who has a severe disability, is aged 16 and over, and who gets a Social Security or Veteran's Affairs payment, or who meets Family Payment income and assets test. Income/Assets test applied.
Benefit:
$346.40 per fortnight.
Also entitled to Pharmaceutical Allowance and Pensioner Concession Card.
Telephone: 13 2300
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Pharmaceutical Benefits Scheme (PBS)

How will changes to the Pharmaceutical Benefits Scheme affect people with HIV/AIDS?

There was considerable public debate about changes to the Pharmaceuticals Benfit Scheme (PBS) in the recent Federal budget. The following article explores what the PBS is, how it works and what the announced changes mean.

So, what is the Pharmaceutical Benefits Scheme (PBS)?

The PBS is a scheme whereby the Commonwealth Government subsidises the cost of about 1700 medicines which are regarded as necessary and/or life saving. Most of the medecines cost the Commonwealth Government more than the price you pay at the chemist’s. Some cost hundreds of dollars. All Australians benefit from this subsidy - the most you should be required to contribute for a PBS prescription is $20 (although there may be a surcharge for more expensive brands).

What about Concession Card holders?

People with a concession card from the Department of Social Security or a Department of Veteran’s Affairs treatment card are entitled to additional subisidies for medicines listed on the PBS. The card must be presented each time you take a prescription for a PBS medecine to the chemist. Concession Card holders should only pay a maximum of $3.20 towards the cost of each PBS prescription, although this may be more depending on which brand is used.

The Safety Net

People or families with high needs for medications are protected under this scheme. The Government sets a threshold for medication costs (see below).Once you or your family have spent the amount of money set by the threshold on PBS medicines, you apply for a Saftey Net Card. Any further PBS medicines that you need will, for the remainder of the calendar year, be supplied cheaper or sometimes free. If you feel you might qualify for the Safety Net, you will need to have recorded all your spending on PBS drugs. A Prescription Record Form is available from most chemists to help you record these expenses.

General Patient Threshold

Concession Card Holder Threshold

$612.60 per individual/family*

$166.40 per individual/family*

$3.20
for each further PBS prescription

free
PBS medicines

* family includes spouse(or de facto),
children under 16 in your care, full-time dependent students under 25)

The costs of pharmaceuticals are an issue for a number of people with long-term chronic illnesses, such as HIV/AIDS, some of whom may have to spend a large amount of money, but fail to reach the safety net. The health of some people may also be put at risk by the current cost structure which requires full payment for vital and prescribed medications for the early part of any one year before the safety net is reached. The Consumer Health Forum has completed a survey of the costs of chronic illness and will be suggesting to both major political parties appropriate changes to the scheme, including a special "chronic illness card" to ensure that people have ongoing access throughout the year to affordable drugs to meet their special needs.

Why has the Government made changes to the PBS?

The cost of the PBS has doubled in five years and such an increase is unsustainable in the long term. Both the former Labour and the current Liberal governments introduced measures designed to reduce the cost of the system, whilst ensuring that people who needed medications receive them at an affordable cost.

According to the Federal Government, the most recent changes announced in the last Federal Budget aim to

encourage the use of cheaper equivalents to high cost brands of pharmaceuticals
educate health professionals and the general community about the high costs of the PBS.

As a result of these initiatives, the Government has said that it will

remove a number of drugs from the PBS. These drugs are used to treat less serious conditions and most can be bought over the counter without a prescription for between $2.45 and $9.95. The savings will amount to $112 million over the next four years.
spend $22 million dollars on a National Prescriber Service, commencing in March 1998, to assist doctors to prescribe appropriately.
provide funding to assist pharmacists, as the most common point of distribution of medications, to advise the general communtiy about cost-effective use of medicines, including the availability of cheaper, alternative brands. It is expected that this will achieve savings of around $560 million over four years.

Why do I have to pay more for some drugs?

Often, different alternative brands of drugs are listed on the PBS. For example, Amoxil, Moxacin, Alphamox, Ampexin, Fisamox and Cilamox are all different brands of one antibiotic called ‘amoxycillin.’ Each of these brands must have exactly the same antibiotic in exactly the same quantities and at exactly the same quality. Each brand must work in exactly the same way in the body. The only difference is that some brands are more expensive than others, according to the price set by each manufacturer.

However, the Government will only subsidise a drug to the level of the lowest-priced brand - this is called the benchmark price. This is to curtail the ever increasing cost of the PBS to Government, and therefore to tax payers. If there are no clinical implications, consumers are entitled to choose between different brands, but if consumers choose a more expensive brand, then they will be required to pay the difference between the brand price and the benchmark price. For people on the Safety Net, only the benchmark price, is counted towards the threshold

When a more expensive brand has been prescribed, the consumer can request the chemist to give them a cheaper brand, if the PBS identifies that the two brands are interchangeable. The pharmacist can also elect to substitute a cheaper brand, providing that the consumer agrees and providing that the prescriber has not specifically indicated on the prescription that such substitution is not not permitted.

Are the cheaper "generic" drugs really as good as the original brand names?

When a new drug is developed, it can be patented to protect the revenue for its developers. There have often been significant costs in research and development which the company seeks to recover. Once the patent expires, however, other manufacturers can develop a "generic" equivalent. A generic drug will only be listed on the PBS if manufacturers can ensure that the drug is clinically equivalent and must undergo the same strict quality controls.

The generic drug is identical in the way it acts in the body as the original brand.

There is current debate about whether this scheme will have a negative effect on the research and development of new drugs in the future.

List of Disability Support Officers

As of 23/09/98 this list is currently being updated.
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Copyright © 1998 Positive People Victoria
Last modified: September 23, 1998