Julian Simmonds (Ryan, Liberal National Party) Share this | Hansard source

It's a great pleasure to speak in the chamber today on this bill, the National Health Amendment (Safety Net Thresholds) Bill 2019, without amendment, because this is why a strong economy is so important. This is why the government fights so hard to ensure that we have responsible economic management. A strong budget, a surplus or a strong financial framework are not ends in themselves; they deliver real on-the-ground outcomes to residents, to people who need them. And this bill certainly does that. In particular, it helps people and families, in a very important and coherent way, to tackle the cost-of-living pressures that they face. This bill will present significant savings, particularly for those on concession cards and those who have a chronic illness.

I appreciated very much the history lesson from the member for Dobell, but I think it's time that we as a chamber acknowledge that it is truly obvious that this government is the best friend that the PBS has ever had. This government is as committed as any government—or more committed—to make sure that the PBS remains a strong and important pillar of our healthcare system. The PBS may be over 60 years young, but it is currently supported like never before. The member for Dobell's speech, while giving some initial support to the bill in front of us, was concerned about medicine affordability. But this is where I struggle to wrap my head around it. Those opposite say they are concerned about the affordability of medicine, yet it's those opposite who stopped listing drugs on the PBS. That is such an important point to make, and we won't stop making it. The member for Dobell stood there at the dispatch box for her speech and talked about somebody who has waited seven months for a life-saving drug. Well, under Labor they simply would have kept waiting and waiting and waiting, until 'fiscal circumstances allow'. If we know anything about a Labor government it's that, given their management of the economy, fiscal circumstances would never allow them to restart listing drugs on the PBS.

In contrast, this government has listed over 2,000 new and amended drugs on the PBS, because we can afford to do it. I take umbrage at the way that it was characterised by the member for Dobell, and I know that, if the Minister for Health were here, he would do the same and point out that this argument that Labor members make about there being delays—in fact, I think the words the member for Dobell used were that the minister was 'refusing to list' some drugs that PBAC had recommended—is simply not true. We as a government have made a firm commitment to list those drugs on the PBS that have been recommended to us, and we have a track record of doing it. Over 2,000 have been listed. We have the strong economy, the strong budget and the strong record of economic management to show that we can do it.

Whenever a drug is recommended for listing, there is a period where there have to be negotiations with the manufacturer to ensure there is adequate supply and that the price is locked in to protect the taxpayers of Australia. But that is it. There is no refusal to list it. There is, in fact, a commitment to make sure that those medicines are listed as soon as possible—as soon as the negotiations can be completed between the department and those manufacturers—once the recommendation has been made. Let's not buy into the argument of those Labor members opposite when they say that that is not what is occurring, because our records show that it is. The new PBS drugs are being listed at an average of one a day—over 30 a month—to help particularly those with chronic illnesses.

Those opposite, including the member for Dobell in her speech, also want to scoff at the savings provided for in this bill. It just goes to show how out of touch they are with ordinary Australians who are struggling with the cost of living and for whom savings of between $80 and $100 provided for in this bill—because they can access the safety net sooner—are significant. Those savings will allow them to either better manage their cost of living or seek and purchase medication sooner. While the Labor members opposite scoff at those kinds of savings, they were quite happy to go to the recent election with a great, big, new retiree tax costing thousands of dollars for self-funded retirees, who were—exactly as the member for Dobell said—making sure that they were planning very carefully, when they purchased their medicines, to manage their cost of living. The Labor Party were very happy to go to the recent election with a great, big tax on retirees without a second thought, yet they stand in this place and scoff at the real savings that we are providing to help people with their cost-of-living pressures.

I would hope that an affordable, accessible healthcare system is something we can both agree on. The government has certainly made that commitment to the Australian people, and I'm certain it's an important reason that the government was re-elected in May. Our plan is to strengthen our world-class health system and guarantee the essential services that Australians rely on. As I said, an important part of that is ensuring we have good economic management to deliver it.

As part of our election commitment to the Australian people, we promised to reduce the safety net thresholds that apply to the Pharmaceutical Benefits Scheme. Under this government, with that responsible economic management, we have the budget to do it. It's the people that matter. Ninety-one per cent of scripts dispensed every year—the equivalent of $186 million—are to concession card holders, including seniors. As the son of two pharmacists myself, having grown up working behind the counter in pharmacies, I know firsthand the difference that quality, cost-effective medicines can make, particularly to older Australians. I saw firsthand how older Australians and concession card holders who were grappling with the cost of living were careful to time their purchase of medications and how careful they were to monitor their access to the safety net. Under this bill, they will get there sooner. Throughout all stages of life, most of us require medicines. Certainly we will have a family member who will understand that their illness has a profound effect on their quality of life. That's why I'm proud to be part of a government that is delivering this bill.

In some cases, medicines that Australians rely on would cost tens of thousands of dollars per year without the PBS. However, the PBS means that concession card holders pay a maximum of $6.50 per script and nonconcession patients pay a maximum of $40.30 per script. Patients receive free or reduced-cost scripts once they reach the safety net, which, under this bill, will be sooner. Twenty per cent of all scripts that are dispensed, the equivalent of $37 million, are free of charge because patients have reached a safety net—a safety net which they will get to sooner under this bill. That is because this government doesn't believe that financial circumstances should impact access to treatment.

My electorate of Ryan is home to over 39,000 families. Health care, medicines and affordable access to them are a priority. It's important to me, as part of the Morrison government, that we do all we can to ease the financial impact that is placed on families with a sick family member. The Morrison government can do that, because of our strong economic management. For instance, under this government, the bulk-billing rate in Ryan last year was over 613,000 visits—some 171,000 more than Labor's last year in government. That is because of our strong economic management. Unlike those opposite, who would increase the cost of living with their new taxes—which they certainly tried to do last May—we are helping Australians with their healthcare costs in a very real and tangible way.

The bill will reduce the PBS safety net threshold amounts for both concessional and general patients and their families and will come into effect on 1 January 2020. The impact on everyday Australians and their families in my electorate of Ryan will be significant. The number of scripts needed to reach the safety net threshold will be reduced by 12 for concessional patients, down from 60 scripts to 48 scripts. Reaching the safety net sooner will mean that patients receive free scripts or scripts at significantly reduced costs and this will reduce their out-of-pocket costs. The safety net threshold for general patients will reduce from the 2019 level of $1,550.70 to $1,486.80. This is equivalent to saving $100. As I said, Labor scoffs at this amount. It just goes to show you how out of touch they are with ordinary Australians working to make sure that they reduce their costs of living. With this bill we are looking to benefit 1.6 million concessional patients and 129,000 general patients across Australia.

Recently in this place I spoke about some of the recent PBS listings we have had. These have had a profound effect on those suffering from chronic illnesses, such as lung cancer, leukaemia, stroke and many more. Medications for well-known conditions that are suffered by many and that cause significant physical and mental pain as well—conditions like diabetes, cystic acne, high cholesterol, asthma and arthritis—have also recently been listed on the PBS under this government. I remind the House again that these listings simply stopped under Labor because they couldn't afford to do it. Since 2013 this government has listed more than 2,100 new or amended items—a total outlay of $10.6 billion. This is what good, strong economic management can achieve and the benefit it can have on people's lives. When sufferers of these chronic conditions and many other conditions reach the safety net they will pay less for their scripts and have fewer out-of-pocket costs.

This isn't just for people suffering from these well-known conditions; it is for many people and many Australian families, for example, when a couple is starting a family. Starting a family is incredibly emotionally and mentally challenging, particularly with the financial impact of treatments through an IVF cycle. Once the PBS safety net threshold is reached the co-payment rate for scripts for some costly medications associated with fertility treatment will be reduced. Allowing them to reach the safety net sooner is a way we can help families in one of the most stressful and challenging times in their lives.

It is at all stages of life that we rely on medicine. In Ryan we have a large ageing population. These individuals have in many cases spent most of their life living locally and helping make our community what it is today. As part of our promises to Australians we have committed to making sure that seniors and retirees in particular get more support. Assisting in their physical and mental health is important to the Morrison government. It's important to me as their local member. Reducing the safety net threshold will make sure that we look after Australian seniors and concession card holders in particular. To help achieve this we have committed $100 million to deal with the fear and loneliness that can accompany age that affect far too many senior Australians. The weekly trip to the chemist to pick up the scripts for the week is important for many older Australians, but it hits the hip pocket. Again, with strong economic management we can continue to invest in the PBS and continue to list new medicines—which Labor weren't capable of doing—to address the illnesses and conditions that are prevalent in older Australians, and we can continue to help them with their healthcare costs.

Not only are we investing in the PBS; I remind the House that we have increased hospital funding by 60 per cent since Labor left office in 2013—and not through new taxes and not through ripping money out of people's pockets, as Labor members opposite would have done if they had been successful at the last election. Through strong economic management we have invested more in our healthcare system than they were ever able to.

That is why—to circle back around—I'm confident to proclaim that this government is truly the best friend that the PBS has ever had. We are keeping it stronger than it has ever been to make sure that it remains a foundation pillar of our healthcare system, to ensure that people with chronic illnesses can access medications cheaper with less out-of-pocket costs and to make sure families are able to seek medical treatment that's ongoing, like IVF, in a way that is cost-effective for them. The Morrison government are ensuring that we are truly strengthening our world-class health system.

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