Government to slash cost of PBS medicines under new cost of living measures

Anthony Albanese will slash the cost of Pharmaceutical Benefits Scheme (PBS) medicines to just $30 a script under new cost of living measures.

Prime Minister Anthony Albanese will slash the cost of Pharmaceutical Benefits Scheme (PBS) medicines to just $30 a script under new cost of living measures.

The general co-payment will reduce by 30 per cent from $42.50 to $30 under the changes.

People filling one script a month could save $150 a year, while those filling two scripts a month could save $300 a year.

But the changes won’t come into force until January 2023.

Honouring an election pledge to cut the cost of drugs listed on the pharmaceutical benefits scheme, Mr Albanese will introduce the legislation on Wednesday.

Health Minister Mark Butler said struggling families were delaying filling lifesaving scripts as inflation soars.

“The ABS advises that the high costs of medications meant close to 1 million Australians delayed or didn’t fill their medications in 2019-20. We must do better than this and we will,” he said.

“Cutting their price by nearly one third will mean more people can afford to get the medications they need to stay healthy – without worrying so much about the price.”

Prime Minister Anthony Albanese. Picture: Martin Ollman/NCA NewsWire

National President of the Pharmacy Guild of Australia Professor Trent Twomey warned families were being forced to choose between food and medicine.

“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,” Professor Twomey said.

Mr Albanese said the changes will put close to $200 million back in the pockets of Australians each year.

“I’m really pleased that we’re introducing this legislation to make many medicines cheaper for Australians,” he said.

“My government is serious about delivering on our election commitments and easing the cost of living pressures left by the former government.”

The existing safety net provisions will continue and all scripts currently counting towards a patient’s safety net will continue to do so.

The $12.50 cut to the PBS general co-payment will cost $765.3 million over the forward estimates.

The government will also introduce a cheaper childcare bill next week.

But it was resisting calls to bring forward the changes to January, with the new system to start in July.

Early Childhood Education Minister Anne Aly on Monday said the changes could not be brought forward any earlier due to workforce shortages.

“Believe me, if there was a way to do this, I would have done it,” Ms Aly told ABC News.

“We want to make sure that when we do this, we do it right. It is a big reform. And it’s something that you want to set up effectively and smoothly. It’s going to take that time.”