Australia: More than 2,000 medicine brands to drop in price

More than 2,000 medicine brands treating common conditions will drop in price for millions of Australians from next month – some by as much as 50% or more – with the Turnbull government delivering a win-win for consumers and taxpayers.

Minister for Health and Aged Care Sussan Ley today announced that, from October 1 2016, one-in-three medicine brands on the Pharmaceutical Benefits Scheme (PBS) would be cheaper for some consumers by as much as A$20 (~$15) per script per medicine – or more than A$200 per year. Ms Ley said the savings would be even higher for many Australians who took multiple medications daily.

“The Turnbull government is continuing to deliver the largest ever reductions in the price of medicines for consumers across the Pharmaceutical Benefits Scheme,” Ms Ley said. “Millions of Australians will benefit from these innovative reforms, with some people suffering multiple chronic conditions such as osteoporosis, high blood pressure, diabetes and gastric reflux set to save as much as A$400 per year on their medicine scripts. This announcement will also help ease cost pressures on a number of long-standing medicines on the PBS treating life-threatening diseases such as breast, prostate and ovarian cancer,” she added.

For example, a non-concessional patient with diabetes, osteoporosis, high blood pressure and gastric reflux who is currently taking:

Ms Ley said the October 1 2016 price drops were the latest innovative reform to come into effect from the Coalition’s landmark PBS Sustainability Package, which passed Parliament last year. More than 80% – or about 1,600 – of the 2,000-plus brands of medicines set to drop in price next month would see a direct saving to some consumers. The remaining 20% - those priced above the general PBS co-payment of A$38.30 - would see a saving to taxpayers.

“In addition to saving consumers real money cash in hand, this innovative Coalition reform will also save taxpayers nearly A$900 million over the next four years by ensuring the government isn’t overpaying for medicines either,” Ms Ley said.