For the first time in its 75-year history, the maximum cost of general scripts under the Pharmaceutical Benefits Scheme will fall.
From 1 January 2023 millions of Australians will pay almost 30 per cent less for PBS scripts, with the maximum general co-payment dropping from $42.50 to $30.
This means that someone taking one medication a month could save as much as $150 every year, or for two or three medications as much as $300-$450 a year.
The maximum cost to general patients for PBS medications has doubled since 2000, and the new Bill, tabled by the Australian Government on 7 September 2022, fulfils Labor’s election promise to cut the cost of medicines and ease cost of living pressures for Australians.
“I’m really pleased that we’re introducing this legislation to make many medicines cheaper for Australians,” Prime Minister Anthony Albanese said in his announcement.
“My government is serious about delivering on our election commitments and easing the cost-of-living pressures left by the former government.”
National President of the Pharmacy Guild of Australia Professor Trent Twomey said this was the single most significant change to the cost of, and access to, medicines since the PBS was introduced 75 years ago.
“As primary healthcare workers, community pharmacists have increasingly been hearing patients say they simply cannot afford their medicines, often faced with deciding who in the family will go without in order to put food on the table or pay their bills,” Professor Twomey said.
“Community pharmacies around the country thank and welcome the action taken by the Government to cut the out-of-pocket cost patients pay for medicines on the PBS, this is an annual saving of almost $200 million which will be put back into the pockets of Australians.”
Professor Twomey explained that making medicines more affordable would also help reduce medication non-adherence, either through taking less of the medicine than prescribed, or not having the prescription filled at all.
Figures from the ABS show that the high costs of medications meant close to 1 million Australians delayed or did not fill their medications in 2019-20.
“Non-adherence directly contributes to higher healthcare costs, including preventable hospital admissions and readmission,” Professor Twomey said.
“In addition to increasing the universality of the access to medicines, this is a big step in addressing cost of living pressures and I congratulate the Government on acting so quickly to fulfil this election promise.”