Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

PRATT (—) (): My question is to the Minister representing the Minister for Health and Aged Care, Senator Gallagher. At a time when we know many Australians are seeing additional pressure on their household budgets, can the minister please outline how the Albanese government's cheaper medicines policies are not only delivering savings to Australians and making it easier and cheaper for them to get their scripts filled but also helping combat inflationary pressures?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pratt for the question. As I said in my earlier answer to Senator Chandler, we do understand that many Australians are doing it tough, as cost-of-living pressures bite into household budgets, which is why we have looked carefully at areas where the government can take pressure off those cost-of-living pressures. This is why we are acting and have acted through the October and the May budgets to provide cost-of-living relief where we can, targeted and timed so that it does not add to the inflation pressures we are seeing across the economy.

One of the key actions we are taking in this area is to make medicines cheaper. It was a key election commitment of this government and, on 1 January this year, for the first time in the 75-year history of the PBS, the general co-payment was reduced from $42.50 to $30. Already, in less than seven months, Australians have saved $118 million on nearly 11 million cheaper prescriptions. It is why we have introduced the new nationally consistent Opioid Dependence Treatment Program that means tens of thousands of Australians will finally get the same benefit that every other Australian gets for PBS medicines. From 1 July they will pay the PBS co-payment on these vital medicines and save up to $200 per month.

As we announced in the budget, from 1 September, we are also introducing 60-day prescriptions for more than 300 medicines that will benefit six million Australians with ongoing health conditions, giving them twice the medication for the cost of a single script. This policy was recommended by independent clinical experts at the Pharmaceutical Benefits Advisory Committee back in 2018, advice that was ignored by the previous government. Sixty-day prescriptions is the norm in so many countries and it is undeniably good health policy.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Pratt, a first supplementary?

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

How will the government work in partnership with pharmacies around Australia who deliver important health care support to their communities to roll out these reforms, particularly those in rural and regional communities? What assistance will be provided to make this transition to cheaper medicines smoother?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Pratt for her question. The government is committed to working in partnership with pharmacies, particularly those in regional and remote communities. In the budget, the government committed to reinvest every single dollar that the government saves with 60-day scripts straight back into the community pharmacy sector so pharmacists can play an even more central role in the health care of Australians.

This government has increased payments for services like dispensing, handling, administration and infrastructure by seven per cent more for all community pharmacies. The government recognises the importance of rural and regional pharmacies and will be investing in them accordingly. Starting this month, the government has doubled the budget for the regional pharmacy maintenance allowance, and from 1 September this year the government is introducing the regional pharmacy transitional allowance to support pharmacies in the transition to 60-day scripts. This will provide $148.2 million over four years for eligible pharmacies in rural, regional and remote areas.

The P:

Senator Pratt, a second supplementary?

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Given the government's changes to deliver cheaper medicines will have a positive impact on people's household budgets, particularly important at this time, and given that 60-day dispensing is commonplace in other countries, like the USA, New Zealand and Canada, why did the former government choose not to act on this targeted cost-of-living relief, and why do they appear to remain opposed to Australians getting their medicines more cheaply and efficiently?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

This is another area where we saw a distinct lack of action from the former government, which meant that people paid more for their medicines for longer than they needed to. The government is acting on the expert clinical advice and feedback. We are acting on the advice of the former government chose to ignore, and from 1 September we are implementing this advice because it is not only good health policy but it also makes medicines cheaper and helps Australians with their cost-of-living challenges.

Introducing 60-day scripts for stable ongoing conditions was a recommendation from the PBAC in 2018. The 2018 recommendation was never implemented by the former government—those in the 'no-alition' now—costing Australians billions of dollars in lost savings. People have had to pay more for their medicines for longer than they needed to. There are millions of Australians with ongoing health conditions who deserve an explanation. This, of course, is a reform that is supported by many in the health sector, who want to see people pay less for their medicine.