From January 1 next year, the maximum co-payment for scripts on the Pharmaceutical Benefits Scheme (PBS) will drop from $42.50 to $30 per script. This is expected to cost the government $782 million over four years.
It’s the first time in the PBS’s 75-year history that the maximum cost of general scripts will fall, the budget papers said.
Slashing the price of medicines is one of the key budget announcements to address the surging cost of living hitting the hip-pockets of Australians.
The government said the change will save “3.6 million Australians more than $190 million each year in out-of-pocket costs” for their medications.
Health Minister Mark Butler said the government is putting the “health of Australians first” by reducing the cost of general scripts and giving a little bit back to their wallets.”
The Albanese government is addressing cost-of-living pressures that affect Australians every day, helping them afford essential health care and cutting the cost of medicines,” Butler said.
The Albanese government had promised to slash the cost of medications during the lead-up to the federal election earlier this year and now has delivered that commitment in its first budget.
More medicines to be added to the PBS
The budget papers also revealed more “affordable and life-saving essential medicines” will be added to the PBS.
This will cost the government around $1.4 billion to add new listings to the PBS as well as amend existing listings.
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It didn’t outline exactly which medications would be subsidised as part of the new funding however it did mention cancer treatments and growth hormone deficiency in children would be added to the scheme.
Funding for Medicare means funding for struggling GPs
The other key health announcement is strengthening Medicare with a $2.9 billion package.
It will start with $235 million over the next year to make it easier for Aussies to see a doctor by creating 50 Urgent Care Clinics.
The clinics are designed to reduce pressure on the hospital system after the healthcare sector saw unprecedented numbers during the COVID-19 pandemic.
For struggling GPs who have been crying out for help, $229.7 million will be put towards improving local practices and improving care – what that actually looks like for the practices is not yet clear.
The government has also promised $10,500 payments for GPs to practice in rural and remote communities to try and attract workers to the sector.
“With this budget, we start to repair Medicare and grow our health workforce,” Butler said.
Other cost-of-living sweeteners in Labor’s budget include the parental leave amendments, childcare subsidies and delivering more affordable housing.
