Michelle Ananda-Rajah (Higgins, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes the Government has made medicines cheaper by:

(a) freezing the price of Pharmaceutical Benefits Scheme (PBS) medicines in the 2024-25 budget;

(b) delivering the largest price reduction in the 75-year history of the PBS; and

(c) introducing 60-day prescriptions for 184 common medicines;

(2) notes that since 1 July 2022, the Government has approved additional funding for 227 new and amended listings on the PBS, including:

(a) trikafta (elexacaftor/tezacaftor/ivacaftor and ivacaftor) which treats children with cystic fibrosis;

(b) selumetinib (koselugo) which treats symptomatic, inoperable benign nerve tumours in children two years old and over with neurofibromatosis type 1; and

(c) patisiran (onpattro) which treats hereditary transthyretin-mediated amyloidosis;

(3) acknowledges that five million Australians have saved more than $456 million on cheaper prescriptions since January 2023; and

(4) notes the Opposition's record of making medicines more expensive and its opposition to the Government's policies to make medicines cheaper for all Australians.

Cheaper medicines have been a win for patients. They've been a win for their hip pockets, for their health and for the wider health system. When meds are cheaper, people are more likely to fill out their scripts and they're more likely to take their medication. In other words, compliance improves dramatically, and there is evidence to back that up. When they take their meds and compliance improves, it's a virtual cycle that spins up—avoidable presentations to emergency departments do not occur. I've seen this time and time again: numerous patients admitted to hospital because they had simply run out of money to take their medications.

In 2020-21—just to give you an idea of the scale of this issue—314 million prescriptions were provided to 17 million Australians. We know now that almost one million Australians take five or more meds a year. That's polypharmacy. It's not necessarily a good thing, but it is the reality we live in. So, for many Australians, taking their medication is a really significant hit to their hip pocket, which is why we have, since the day we took office, focused on making medicines cheaper for Australians and, in doing so, improving compliance and reducing the number of presentations to emergency departments. In July of the year we formed government, 2022, we lowered the PBS safety net threshold. In October that year we reduced the price of 2,000 brands of medicines. In January last year we delivered the largest price reduction in the 75-year history of the PBS.

The PBS, or the Pharmaceutical Benefits Scheme, is Australia's national formulary—a list or directory of all the medications we have to provide to the Australian people, all of which have been robustly and rigorously tested and come in at a price point that is not going to bankrupt the country. This PBS is a legacy of the Chifley government. He actually had to take it to a referendum in order to get it done. But the PBS now is a gift to our nation, and it has allowed more and more Australians to receive cheaper meds. When the Liberals left office—after 10 years, I might add—a general med script was $42.50. In that interval they could have reduced the price of medications for Australians. Instead, they didn't. We came in and we brought that down by $12.50. Now a general script is no more than $31.60 for medicines on the PBS. But, if you're a pensioner or concession card holder, you'll pay no more than $7.70. We froze those prices in the May budget such that, for general patients, that price of $31.60 per script will last until the end of next year and, for concession patients, it will go on for another five years. We've frozen those costs.

Not only that—we've also, after some resistance from the pharmacy sector, introduced 60-day scripts. Sixty-day scripts are really important for the one million Australians who are taking five or more medications—in other words, patients with chronic diseases, who are going to be taking these drugs for a lifetime. We introduced this in September last year for 100 medications. A second tranche came in in March this year for another 100 meds, and in September this year it will be another 300 medications. I want to go through what that means for some patients.

On the topic of diseases, we often think of diabetes, hypertension and hyperlipidaemia, but in fact there are a host of rare diseases. There are around 7,000 rare diseases that collectively affect two million Australians, both adults and children. One of those diseases is amyloidosis. Amyloidosis is a very rare disease. It affects less than 2,000 Australians per year. In my 26-year career, when I was practising, I've only ever diagnosed it once in a patient. This was a patient who presented late, which is the norm. We have made Onpattro, a medication for a hereditary type of amyloidosis, available to Australian patients. This is a game-changer drug. It can actually slow the disease down, preventing the development of further neuropathy or cardiomyopathy, which can lead to heart failure. It has improved the lives of Australians. It is a rare disease, affecting about 55 patients per year. Those patients would otherwise be paying close to $650,000 per year for this drug, but they will now be getting it for $31.60 per script. These infusions, which they take every three weeks, are an absolute lifesaver. That is what having cheaper medicines means for the Australian people.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

Is there a seconder for the motion?

Peter Khalil (Wills, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve might right to speak.

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

I thank the member for Higgins for drawing attention to this very important issue. We are very lucky in this country to have a national medicines policy which should guarantee all Australians equitable, timely, safe and affordable access to a high-quality, reliable supply of medicines and medicine-related services. Unfortunately, though, the medication system in this country is too complicated. It's too slow and it's insufficiently responsive to the needs of Australians. I would also note that, for many Australians, medications are still too expensive.

Drugs are approved in Australia after having been assessed by the Therapeutic Goods Administration and the Pharmaceutical Benefits Advisory Committee, who together determine the comparative health gain. This assessment includes looking at the magnitude and significance of drugs' effects—their safety, their cost-effectiveness, their affordability in the absence of PBS subsidies, their predicted use in practice if they are licensed, and the financial implications of that use. The process then involves commercial negotiations between the government and the drug suppliers.

It's clear that the TGA and the PBS are not working as well as we need them to. We have chronic shortages of hundreds of medications in this country, including some antibiotics, diabetes medications and HRT. Just this week operations are being cancelled around the country because of a shortage of intravenous saline. In a country surrounded by salt water, we have a shortage of saline! I'm also hearing from palliative care physicians who are frustrated by ongoing shortages of morphine, which are impeding their care of dying patients. This is a system which is not working as well as we need it to or as well as it should.

It is good that this government has passed legislation which has lowered the safety net for medication prices for many Australians. The government has also passed legislation which has enabled 60-day prescriptions of medications, and prescriptions of up to 12 months after a single visit to the GP. That and the limited price increases that we've legislated in this term of parliament are really important measures for the many Australians who are dealing with severe cost-of-living pressures at this point in time, but we also have the fact that we need new medications. It still takes years to get a new medication from initial application to approval in this country. We know that the PBS operates within a finite budget and that the inclusion of new, often expensive medications is a perennial strain on its resources.

While we all appreciate that the government has to ensure value for money in approving and licensing new medications, its systems are often a frustrating barrier to access to new and innovative therapies. Equity of access is a concern, especially for those with rare diseases which often mandate high-cost, low-volume therapies. As a doctor and a medical researcher, I experienced the frustrations of this system for many years, and I felt them along with my patients and their families.

In November 2021 the parliamentary health committee inquiry documented the need for urgent improvement of the health technology environment in Australia. It described how we need greater transparency around medicine approvals and funding, clarity around how we define cost effectiveness and a commitment to consideration of and engagement with alternative models for funding of the system.

A division having been called in the House of Representatives—

Sitting suspended from 12:30 to 12:41

The review into the health technology assessments in this country has now been gathering dust on the minister's desk for some months, and I don't have any confidence its recommendations are going to be enacted in this term of government. It's extremely disappointing and frustrating for all in the sector because we need this government to tell us how it plans to develop specific funding mechanisms and policies supporting the expedited approval of high-cost, low-volume treatments for medical conditions. Clinicians and researchers deserve an improved framework for ongoing health technology assessments, and this should include a commitment to research and development and to greater innovation and adaptability within our regulatory bodies.

The PBS should provide affordable access to essential medicines for all Australians, but its processes are fraught with challenges. Regulatory delays, cost-effectiveness assessments, budget constraints and negotiation complexities all contribute to the difficulties faced by pharmaceutical companies, healthcare providers and patients. We have to address these challenges through streamlined processes, enhanced transparency and flexible approaches to cost-effectiveness. The government needs to ensure our PBS can continue to evolve to meet the evolving needs of all Australians, and we need the government to act now and to demonstrate vision, decisiveness and effectiveness. Australians deserve no less.

Libby Coker (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

Cheaper medicines mean more money in the pockets of Australians and better health outcomes, particularly for people with chronic conditions. The Albanese government recognises this. Since coming to government we have significantly increased the co-payment for medicines on the Pharmaceutical Benefits Scheme.

Affordable health care is in Labor's DNA because we understand that good health is pivotal to people doing well and living a full life. The PBS scheme was established by the Chifley government. The coalition opposed it, just like they opposed Medibank and Medicare. The Albanese government is building on the great legacy of the Chifley government. Since coming to government we have approved extra funding for 227 new and amended listings on the PBS. In my electorate of Corangamite, cheaper medicines are playing a crucial role in easing cost-of-living pressures for individuals and families. As of 30 June this year, the total patient savings in my region was nearly $2.5 million and the number of reduced cheaper scripts was just under 200,000. When medicines are more affordable, people can manage their health without sacrificing other essential needs, such as food, housing and education. This balance is especially important for those with chronic conditions who require regular medication.

One of the many life-changing and life-saving drugs is Koselugo. Selumetinib, also known as Koselugo, will be included under the PBS for the first time to treat symptomatic, inoperable, benign nerve tumours in children two years old and over with neurofibromatosis type 1. NF1 is a rare genetic disorder affecting about one in 3,000 Australians. Individuals with NF1 commonly have tumours that cause symptoms such as headaches, pain and disfigurement and that lead to other complications, significantly impacting quality of life. Koselugo works by blocking certain proteins involved in the growth of tumour cells. This medicine is invaluable to the 170 children who are expected to access it each year. It significantly improves quality of life.

Without the subsidy, families may well pay around $146,000 per year for treatment. This is well beyond the reach of most families. On the PBS, they will pay no more than $31.60 per prescription, or $7.70 if they have a concession card. It's worth pointing out that under the Albanese government the maximum cost of a prescription on the PBS was lowered from $42.50 to $30 in January, the largest cut to the copayment in the 75-year history of the PBS. This has delivered about $20 million back into the pockets of Australians each month. And, since the Albanese government introduced 60-day prescriptions, more than 600,000 scripts have been brought into play, saving patients an estimated $5 million.

It should be noted that the coalition tried unsuccessfully to block this legislation, which was a nonsensical move when it has benefited so many Australians. All in all, by year's end, Australians will have saved more than $250 million on the price of their medicines, with even greater savings to follow later this year. It is easier now to see a doctor for free, with more bulk-billing services available since the Albanese government tripled the incentives that doctors get to bulk-bill pensioners, concession card holders and children under 16. Doctors in GP clinics in every state and territory have increased the availability of bulk-billing since the $3.5 billion investment came into effect on 1 November. More that seven million pensioners and concession card holders, as well as five million families with children under 16, are eligible for the higher Medicare payments. Together, these patients account for three out of five visits to the GP. Thanks to the Albanese government, a GP in one of the major cities will now receive 34 per cent more in Medicare payments to bulk-bill a standard 20-minute consultation with an eligible patient. These measures are delivering vital cost-of-living relief, ensuring Australians do well. (Time expired)

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

This is yet another motion brought in by a Labor member pretending as though everything good that is in the nation has happened since May 2022. If they spruik something often enough and loud enough, eventually, I reckon they're going to start to believe their own talking points. I reckon they're going to start to believe that everything prior to May 2022 was bad and that they are responsible for the sun coming up every morning.

The problem with this motion is that this is the government which almost sent our pharmacists broke and which almost sent our country chemists, in particular, to the wall. We all remember—I know the member for New England and the member for Flynn well remember—when our white-coated warriors were in the public galleries. They were outraged because the pharmacy agreement had not been signed. It took those members and the Nationals, in a coalition opposition, to bring the government to heel, to bring the government to account, to actually get an accord signed and to get a better deal for our country chemists. Hundreds of country chemists are the only frontline people in those rural communities, in those regional communities and, particularly, in those remote areas of Australia that, but for the chemist, would not have a frontline professional looking after their health needs.

We so often hear those opposite talking about bulk-billing, yet bulk-billing rates have dropped 10 per cent under this Labor government. I speak on my shadow portfolio role here, but I well remember, during COVID, what the former member for Flinders, as the Minister and Aged Care, did to make sure that vaccinations went into the Pacific. Furthermore, during that time, over 94 million telehealth consultations were made through Medicare to 16 million patients. There have been 857 new medicine listings on the Pharmaceutical Benefits Scheme since 2019. That is delivery. That is action. That was done by a coalition government.

Labor, don't you come in here and pretend as though all is new and you're the only ones who are doing anything about medicine. In fact, the truth is, and if your talking points reflected the reality, it's quite the opposite. Labor are failing on the medical front. Labor are failing when it comes to rural communities and their health needs. You only have to look at their 60-day dispensing changes—changes which were very much going to send a lot of country chemists to the wall, and it was the Pharmacy Guild and the National Party, in coalition, who belled the cat on this very ill-thought-out policy.

Indeed, we all want cheaper medicines, but, if it comes at the cost of the only health professional in town, the good old country chemist, that friendly health professional who provides the only form of upfront health care for many of those rural communities, then that doesn't improve regional health outcomes. That policy would have sent many rural community chemists bankrupt. Look at what we did during the pandemic, where, according to the Johns Hopkins centre, we were ranked second in the world for pandemic preparedness, and much of that was in the area of health. That was because of the policies of the former coalition government, a coalition government now maligned by those opposite.

We always hear them talking about a trillion dollars worth of Liberal Party debt. I'll remind those opposite, the Liberals are in a coalition with the Nationals. What did we get for the money we spent? We saved tens of thousands of peoples' lives. We saved millions of jobs. During the pandemic, 1.1 million jobs were created and, if not for that assistance that we provided, those jobs would have been lost. We would have seen unemployment queues. We would have seen queues at the Salvos and at St Vinnies longer than we saw during the Great Depression era.

When Labor comes in with these motions, talking about the PBS and talking about what they've done, they forget about what was done during those years that we were in government. They forget about the life-saving drugs that were put on the PBS for cystic fibrosis, cancer and leukaemia. They forget about all those people, particularly those throughout our regional communities, who have to travel further for medical treatment. 'When in pain, catch the plane' is often the case. They should reflect on that and they should make sure we have better regional health outcomes.

Sam Rae (Hawke, Australian Labor Party) Share this | Link to this | Hansard source

I am very fond of the member for Riverina, and I think he does, under the circumstances, in a nonpartisan sense, an exceptional job of representing his constituents by and large. I never cease to be frustrated, though, when honourable members come into the chamber, clearly paying very little attention to the substance of the motion at hand and seeking to score some cheap and poorly articulated political points at the expense of the substance of the matter that we're seeking to discuss.

The reality here is that Scott Morrison and his Liberal government set the conditions for our country to face an unprecedented cost-of-living crisis. This is best exemplified, as the member for Riverina very honestly points out, by the trillion dollars of Liberal debt that Scott Morrison's government stacked up on behalf of the Australian taxpayers and, ultimately, left for generations of Australians, regardless of where they live or their socioeconomic circumstances, to pay down. They had nine years, nine budgets and nearly a decade in government, and across the course of that decade they did not deliver a single budget surplus. They had nine budgets and, despite the mugs crowing about their economic prowess, they did not manage to deliver a single surplus; in fact, there were nine budget deficits. Nine times they spent more money than they saved. So the country is left with a trillion dollars of Liberal debt.

We face a series of very unstable international economic conditions, and the Australian people have been suffering. People in my own electorate of Hawke have been facing very challenging household economic conditions. Our government, the Albanese Labor government, can't fix everything. We don't pretend for a second that there's a silver-bullet solution to these challenges that will ultimately set aside this history of reckless fiscal management by the Liberal Party as well as some very challenging economic conditions, but there are some things that we can do that will serve working people, in terms of taking some of the economic pressure off them at a household level while, at the same time, meeting our broader social obligations and, indeed, ambitions as a community.

Our cheaper medicines policy is a great example of this. This is a policy that is specifically designed to ensure that working people can affordably access the health care that they require. It takes economic pressure off households. They now effectively get twice as much medicine for their money, so the price of medication is halved. Indeed, it takes pressure off our broader public health infrastructure, in that it ensures that people have ongoing health support and that they can afford to pay for their medicines. Accordingly, they don't find their health conditions slipping over time while they try to save money and try to make very difficult considerations about the priorities in their household and family budgets. When their health care goes on the backburner, all of a sudden we have an epidemic of very serious health issues that have been poorly managed for, frankly, unreasonable economic reasons.

This policy is specifically designed to do two things: take pressure off working people and their household budgets and, at the same time, ensure that we have a healthy community that is able to access the medicines and the health care that it requires in order to remain a healthy community. It doesn't matter where you live in this country and it doesn't really matter what socioeconomic circumstances you come from. In this regard, the cost-of-living crunch has been unusual.

I well understand that the member for Riverina considers himself—with some credibility, I think—a warrior for regional people, but he is not the only regional MP in this building. Indeed, I assure you that the Nationals are not the only party that represents regional people. I represent regional people as well, and I can tell you right now that regional people all across my electorate have been overwhelmingly positive on this policy. In pharmacies in all our small towns people can now access the health care that they need, and they're doing it at half the price they were previously. We know that our regional health infrastructure is under pressure, and this is one approach to taking that pressure off.

Tracey Roberts (Pearce, Australian Labor Party) Share this | Link to this | Hansard source

Today I rise to talk to you about a promise the Albanese Labor government made to the Australian people—a promise to make medicines cheaper—and how we are delivering on that commitment. Labor went to the election pledging to bring down the cost of medicines for Australians. I am proud to say that we are fulfilling that promise. As of 30 June 2024, over five million Australians have saved more than $456 million on their prescriptions since January 2023. This isn't just policy on paper; it's real, tangible relief for households facing rising living costs. This is the kind of support that only a Labor government can deliver.

Since July 2022 the Albanese Labor government has implemented crucial reforms to make medicines more affordable for everyone. In July 2022 we lowered the PBS safety net threshold. This means that people with high medical needs reach the point of getting medicines free or at significantly reduced cost faster than before. In October 2022 we reduced the price of 2,000 brands of medicine, and just three months later, in January 2023, we achieved the largest price reduction in the 75-year history of the Pharmaceutical Benefits Scheme. Under our government, no-one pays more than $31.60 for a PBS-listed medicine, while pensioners and concession holders pay no more than $7.70. We know that every dollar counts for Australian families, and this is making a real difference.

In September 2023 we introduced 60-day prescriptions for 100 medicines, which was expanded to 184 medicines by March 2024. This reform allows Australians with stable ongoing health conditions to collect two months worth of medicines with a single prescription. This saves them time, cuts down on trips to the pharmacy and, importantly, saves money. To give you an idea of the impact, from September 2023 to June 2024 in Pearce alone, there have been over 52,000 60-day scripts filled, easing the burden on thousands of patients. And we are not stopping. In September 2024 we will roll out the third phase of the 60-day prescription reform, which will expand to include nearly 300 medicines. Additionally, in our most recent budget we froze the price of PBS medicines at $31.60 for general patients until the end of 2025 and $7.70 for concession patients until the end of 2029. This is another way we're delivering essential cost-of-living relief while ensuring all Australians have access to the medicines they need to stay healthy.

I also want to touch on another key part of Labor's commitment to affordable health care. The PBS is a vital lifeline for millions of Australians, and Labor is committed to making it stronger. Since coming to government, we've approved funding for 227 new and amended listings on the PBS. These listings include life-saving and life-changing medicines like Trikafta. Trikafta is a revolutionary drug for people with cystic fibrosis, and we have expanded its PBS listing, making it available to children aged two to five. Cystic fibrosis is a devastating disease, and providing access to Trikafta earlier in life can make all the difference. This expansion is expected to benefit an additional 330 children each year. Without subsidy, this drug would cost families over $250,000 per year, but, on the PBS, they will pay no more than $31.60, or just $7.70 if they hold a concession card. This is the kind of meaningful impact the Albanese Labor government is delivering.

It's important to reflect on the opposition's approach. The opposition has consistently opposed every measure we've introduced to make medicines cheaper, and they have a track record of making health care more expensive. By the time those opposite left office, the cost of a PBS script had risen to $42.50. But we reversed that trend. We cut the maximum cost of a PBS script from $42.50 down to $30. This is the largest reduction in the cost of medicines in the 75-year history of the PBS. In Pearce alone, from January 2023 to June 2024, there were almost 207,000 reduced co-payment scripts filled, saving patients nearly $2.5 million. These savings matter. They mean less financial strain for families and better access to the care that they need.

Our goal is simple: to make sure every Australian can afford the medicines that they need without worrying about the cost. These reforms aren't just numbers; they are about people—people who need access to affordable health care and life-saving medications.

Zoe McKenzie (Flinders, Liberal Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.