Friday 30 November 2018

Ripping Off Medicare !

Australia's Medicare system is one of the big items of the Federal budget and one of the most trusted members of our society - a chemist - has just been sentenced to eight months prison with a six month non parole period for diverting a vaccine intended for Australian users to a profitable private sale in Hong Kong and China.

The chemist claims that her law breach was altruistic.  She was trying to help poor people in Asia when she diverted 2432 doses of  Gardasil 9, a cancer vaccine from its legitimate use here to an air freight export - that netted her a profit of $30,000.  She has signalled that she will appeal this sentence.

This is simply one of the more blatant rip offs of the Medicare system but it also seems that the Australian taxpayer is footing the bill for a lot of prescription medicine that is going offshore.  Many of the drugs prescribed here are heavily subsidized under our Pharmaceutical Benefits scheme and are simply not available in some other countries, or available at a price that reflects their true cost. Quite often this is the case with medication that we take for granted because it is essential to keep life threatening maladies under control.

It is suspected that diverting medication prescribed to a legitimate Australian user with family members overseas is rife and this travels either as mail or stockpiled and carried in passenger luggage on a holiday visit.  In many cases the medication is being shared with a family member overseas because it is legitimately required to treat the Medicare card holders health problems.

It is also likely that medicine features heavily as a transaction medium in some sectors of our society. Pensioner prescriptions are heavily subsidized and can be profitably exchanged for cash when a lucrative market overseas awaits.  Australian branded pharmaceuticals have the reputation for integrity in a market where fake goods proliferate in a thriving black market.

It would be prudent if our customs officers at departure terminals paid close attention to pharmaceuticals being taken overseas.  In most cases the traveller can produce prescriptions to prove legitimate need but the quantities involved invite questions about the length of the planned trip.  A similar crackdown on mail passing through the mail exchange would be fruitful.

We do not accurately know what leakage rate is involved in Medicare costs but if left unchecked it seems certain to grow.  This prison term for blatant profiteering will certainly send a message but the potential for settled migrants to send medication to those in their old home seems to be a victimless crime, but if left unchecked it could make Medicare unworkable.  Quite clearly it is a law breach !

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