Election 2022: Scott Morrison’s pledge to cut PBS costs gets jump on Labor’s script

Scott Morrison will slash $10 off the price of prescription drugs and put $150m back into the pockets of millions under the biggest shake-up of the PBS in more than 70 years.

Scott Morrison will promise to cut the price of common medicines used for blood pressure, depression, diabetes, pain relief and high cholesterol.

Scott Morrison will slash $10 off the price of prescription drugs and put $150m back into the pockets of millions of people under the biggest shake-up of the Pharmaceutical Benefits Scheme in more than 70 years.

Ahead of Anthony Albanese’s official campaign launch in Perth on Sunday, which will focus on Labor’s health credentials, the Prime Minister will promise to cut the price of common medicines used for blood pressure, depression, diabetes, pain relief and high cholesterol.

Mr Morrison said the election commitment, benefiting more than 19 million non-concession card holders at a time of rising inflation and higher costs, would come into effect from January 1 next year.

It would be the first time a government has slashed the PBS general co-payment.

“Our economic plan is delivering cost-of-living relief to millions of Australians who will save hundreds of dollars every year on the cost of essential and lifesaving medications,” Mr Morrison said. “This is the single most significant change to the cost of and access to medications since the PBS was introduced more than 70 years ago.

“Millions of Australians will soon save $10 per script for common medications, which means those taking one medication a month could save $120 a year, or those taking two medications a month could save $240 a year.”

As Labor ramps up attacks on the government’s response to cost-of-living pressures ahead of a crunch RBA decision on interest rates on Tuesday, Mr Morrison said the Coalition’s economic management meant they could wind “the clock back on the cost of medications” and reduce scripts to 2008 prices.

Mr Morrison said voters had a “clear choice” at the May 21 election on whether the Coalition or Labor were better-positioned to secure affordable access to medicines.

“Australians can vote for a stronger economy under the ­Coalition, who always delivers ­affordable medication and cost-of-living relief, or a weak economy under Labor, who stopped listing medicines on the PBS in 2011 ­because they could not manage the economy,” he said.

Pharmacy Guild of Australia national president Trent Twomey said price reductions for medicines would “help Australians struggling with the cost of living to make ends meet without delaying, deferring or skipping their prescription medicines”.

Health Minister Greg Hunt, who is retiring from politics at the election, said the $10 cut per script meant the maximum price Australians paid for PBS medicines would fall by 24 per cent from $42.50 to $32.50.

“Since 2013, the Coalition government has approved more than 2900 new or amended listings on the PBS at an overall investment of around $16.5bn,” he said.

“By listing these medications on the PBS we are ensuring Australians can have access to affordable, lifesaving medications that would otherwise cost thousands, or hundreds of thousands of dollars, without subsidy.”

Australians spend nearly $3bn on PBS-listed medicines each year, and in 2020-21 more than half a million people deferred or did not fill a prescription because of the cost, Grattan Institute health and aged care program ­director Stephen Duckett said.

The government has already promised, if elected, to spend $273m to cut the cost of continuous glucose monitoring for an additional 71,000 Australians with Type 1 diabetes – a commitment immediately matched by Labor.

The $10 reduction in the price of PBS medication was inadvertently pre-announced by Financial Services Minister Jane Hume in her speech to the Senate, introducing the budget Bills following the March 29 budget.

Assistant Treasurer Michael Sukkar made a similar reference in the lower house. Both comments were erased from the official parliamentary record on the basis they were incorrect.

Mr Twomey said community pharmacies strongly supported price cuts for millions of patients.

The PGA had formed a coalition with other medical peak bodies to represent the needs of patients and “we are very grateful that this government has listened to the voices of these bodies, their patients and members.”

Industry data released by the government shows estimated yearly savings for non-concession card holders would be $51m in NSW, $37m in Victoria and $32m in Queensland, followed by South Australia ($10m), Western Australia ($17m) and Tasmania ($3m).