Mark Butler (Hindmarsh, Australian Labor Party, Minister for Health and Aged Care) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Today, I introduce the National Health Amendment (General Co-payment) Bill 2022. The amendments made by this bill will cut the cost of medications by reducing the Pharmaceutical Benefits Scheme, or the PBS, general patient charge, commonly referred to as a co-payment, from the current maximum of $42.50 per script to a maximum of just $30 per script.

The Pharmaceutical Benefits Scheme, or the PBS, was established back in 1948, as a limited scheme then, to ensure that Australians had equal and affordable access to 'life saving and disease preventing' medicines when they need them.

Establishing the PBS was not easy. It was John Curtin and Ben Chifley who fought hard to create this essential pillar of our healthcare system. It took two High Court challenges, two referenda, constitutional changes and long battles with the British Medical Association, as it was then called, with the Liberal Party, and with many others over 15 years to make it what it is today, which is a genuinely universal system and, perhaps, the best medical system pound for pound, or in terms of bang for buck, that we have in the world.

It was a Labor government that first introduced the legislation to make life-saving drugs more affordable, back in 1944, and the Albanese government remains utterly committed to ensuring that the PBS enables Australians to access affordable medicines well into the future.

The PBS is a key component of our health system, providing significant direct assistance—that amounted to $13.8 billion in 2020-21—to make medicines affordable for Australians.

As minister I am absolutely committed to making sure the PBS continues to work as well as it possibly can well into the future.

After nine years of neglect and drift from the former government, costs of living are soaring and many Australians are cutting back on essentials just to make ends meet. This bill will help ease the squeeze on household budgets for millions of Australians.

This bill amends the National Health Act 1953 to reduce the maximum general patient co-payment under the PBS from the current maximum of $42.50 to just $30.00. This reduction of $12.50 for each script represents a saving of almost one-third—of 29 per cent—for general patients.

From 1 January 2023, around 3.6 million Australians with current prescriptions over $30 will benefit from this Albanese government initiative. People filling a prescription for one medication per month, for example, will save up to $150 a year, while a family filling prescriptions for two or three medications per month could save $300 to $450 per year.

Approximately 19 million Australians will be eligible for savings under this bill, with total savings for consumers calculated to be almost $200 million each and every year.

This bill will ease the cost-of-living pressures that Australian households are feeling right now right across the country.

But this bill will also have a profound benefit for public health.

High medicines costs have meant that patients are currently choosing between the health care they need and providing for their families. The PBS co-payment for general patients has doubled since 2000, and, according to ABS figures, more than 900,000 Australians delayed or did not get a prescription filled in 2019-20 due to the cost.

Pharmacies have told me time and time again of their experiences of having to deal with patients that come to them with multiple scripts and seek advice about which ones they really need to fill, because they can't afford to fill them all. Patients are often deciding to fill a script that might give them immediate relief, for example pain medications, but not filling a script that's actually very important for their longer term health.

The Albanese Labor government will keep the costs of medicines down and help to ease the cost-of-living pressures that Australians are facing right now. All Australians should have access to universal and world-class medical care. No-one should have to choose between filling a prescription that their doctor has said is important for their health, for lifesaving medicines, or providing for their families.

To make sure the PBS is sustainable, patients contribute a co-payment towards the cost of their PBS subsidised medicine, with the Commonwealth paying the remaining cost. While many PBS medicines cost significantly more than the patient contribution, the patient co-payment for the 2022 calendar year is currently $42.50 for general patients, that is, patients who are not concession card holders.

This bill amends the National Health Act 1953 to reduce the maximum general patient co-payment under the PBS from the current maximum of $42.50 to just $30.00. This reduction of $12.50 represents a saving of 29 per cent for general consumers (excluding brand premiums, which are optional charges that might be imposed by manufacturers).

Approximately 19 million Australians will be eligible for savings under this bill, with total savings for consumers calculated to be almost $200 million per year.

No longer will general patients taking Eliquis, for example, for the prevention of stroke or Advair for asthma or Janumet for diabetes and so many other life-changing medicines have to choose between their script and their other household expenses. This bill will ensure they receive the essential medical and pharmaceutical care needed to prevent severe illness and keep them healthy.

The bill will also ensure that no patient is worse off under this change, by allowing pharmacies to continue offering optional discounts where the Commonwealth price is between the new and current co-payment amount. The amount paid by the patient under these arrangements will still be counted towards the general safety net threshold, ensuring that no Australian is adversely impacted by these changes.

Every year, and in fact almost every month, this government is adding new medicines to the PBS and expanding access to existing medicines for new patient groups in line with emerging evidence about the safety and the effectiveness of those medicines. Treatment options for patients are ever expanding and the PBS has continued to expand with them.

Some subsidised medicines that are available through the PBS can otherwise cost thousands of dollars per prescription. The PBS provides, however, these medicines to patients at a significantly reduced cost, where general patients will now only pay a maximum of $30 per prescription with the government covering the remaining cost.

The general patient co-payment will continue to be indexed on 1 January each year in line with existing indexation arrangements. Indexing from 1 January 2024 will be calculated off the new general co-payment amount, securing savings for Australian general patients well into the future.

Right now, Australians are paying the price for a decade of missed opportunities and drift. Through this bill, we will make a real difference to household budgets for millions of families.

The Albanese government is taking action. We are tackling the day-to-day concerns of Australians. We have plans to make medicines cheaper and to make it easier to see a doctor.

Millions of Australians will benefit from cheaper medicines under an Albanese government. Just like Medicare, it was Labor that built the PBS and Labor will always protect it so that all Australians can access affordable medicines when they need them.

Debate adjourned.