The Turnbull government has brokered a $10 billion deal with doctors, pharmacists and the pharmaceutical industry to cut medicine prices, reduce out-of-pocket expenses restore voters' trust in the Medicare system.

In addition to boosting the Medicare Levy by 0.5 of a percentage point to 2.5 per cent to help fund the National Disability Insurance Scheme, the government will allocate a portion of the revenue to a new Medicare Guarantee Fund to cover the combined costs of Medicare and the Pharmaceutical Benefits' Scheme.