The federal government added 48 drugs Friday to the list covered under the Pharmaceutical Benefits Scheme, including treatments for heart disease in infants and children, tubercolosis and cancer.

Prime Minister Julia Gillard said more than 160,000 Australians would benefit from the inclusion of more drugs that are subsidized by the PBS.

Seven of the 48 were recommended to be included in the PBS but were deferred in February. The deferment was met with heavy criticism since health experts have earlier suggested their addition.

Gillard and Health Minister Nicola Roxon said the 48 drugs were added because of budget savings and recommendations from the Pharmaceutical Benefits Advisory Committee. The two officials said the government would coordinate with the pharmaceutical industry and consumer groups in the future to manage further deferral of drug subsidies.

The government also announced Friday that it would increase the price of 23 drugs on the PBS list, including two for diabetes.

Two weeks ago, a study by researchers at the University of Western Australia's School of Population Health found that spending on medicine was rising fast in Australia because of ageing populations, more new drugs available and higher incidents of chronic ailments.

The rise in medical spending was accompanied by an increase in spending on publicly subsidised medicines to $62 in 2007 from $16 per person in 1971. Patient spending on all prescription drugs also grew to $134 per person in 2007, inflation included, disclosed lead researcher Dr Anna Kemp.

"In Australia a number of policy changes to the Pharmaceutical Benefits Scheme have resulted in consumers contributing a higher proportion of funding in direct out-of-pocket payments. There is evidence that this has resulted in access problems for some consumers, including those on low incomes and the elderly," she told HealthCanal.com.

Among 14 Organisation for Economic Co-operation and Development nations, Australians ranked fourth with universal drug subsidies which resulted in patients paying 28 per cent of national pharmaceutical expenses.

The lowest at 6 per cent were enjoyed by patients in Spain, followed by those in Czech Republic (11 per cent), Germany (15 per cent) and France, Luxembourg, Japan and Switzerland (17 per cent).

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