Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question as to the Minister representing the Minister for Health, Senator Gallagher. Can the minister outline how the Albanese government is making medicines cheaper for Australians, and how will a move to 60-day prescriptions further assist Australians face cost-of-living pressures and improve the health of people with ongoing health conditions? And what reception has the policy received from doctors and health consumers?

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

I thank Senator Walsh for her question and for the opportunity to talk about another one of our policies which goes right to the heart of addressing some of the cost-of-living pressures households are experiencing right now. In January this year, we delivered the largest cuts to the price of medicine in the 75 years since the Chifley Labor government established the Pharmaceutical Benefits Scheme. The general copayment was reduced from $42.50 to $30, and, in the first six months of this year, Australians have saved $120 million on over 11 million prescriptions. That's $120 million in savings.

We are determined to do more to help Australians with the cost-of-living challenges they are facing, and that's why we announced in the budget that we would move to 60-day prescriptions for a select group of medicines for people who have ongoing health conditions where their doctor approves it. This will mean around six million Australians with ongoing health conditions will be able to access 60 days worth of medicines at the same price that they currently pay for 30 days worth of medicines. This will mean, for six million Australians who have ongoing health conditions, it will effectively be halving the cost of getting certain medicines. It's estimated that Australians moving to those arrangements will save $180 per medicine each year. This policy, importantly, is based on the expert advice provided to the government by the Pharmaceutical Benefits Advisory Committee. Sixty-day scripts are already in place in New Zealand, Canada and the United Kingdom. The AMA says this is a 'win for patients' that 'should lead to better medicines adherence and ultimately better health outcomes, with reduced pressure on the health system'. I think, based on those comments, this is something that all of us in this place should support.

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

Senator Walsh, a first supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Is the minister aware of why this policy hasn't been introduced earlier? Has there been any reaction from the health sector to the coalition's continuing opposition to 60-day dispensing?

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

I thank Senator Walsh for the opportunity to answer that question. The previous government was provided with the advice to move to 60-day dispensing back in 2018, some five years ago, and what happened? Well, they ignored it. They did nothing. That's right. They did nothing, just like the entire decade of their—

Hon. Senators:

Honourable senators interjecting—

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

Order across the chamber!

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

This means that, for the last five years, millions of Australians have paid hundreds of dollars more than they actually needed to for their medicines. Only the former government can explain why they decided to keep the costs of medicines higher than they needed to be for longer than they needed to be. The AMA has called out the opposition on this.

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

Senator Henderson!

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

At a time when many people are struggling with cost-of-living pressures, the public positioning of the coalition on 60-day dispensing suggests they are intent on having patients continue to absorb unnecessary financial pain, with all the negative consequences that that brings. (Time expired)

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

Senator Henderson, once again I've called you to order. As I've said to senators on many occasions, there is ample opportunity across the sitting week for you to make a contribution. Question time is not the time. Senator Walsh, a second supplementary?

Jess Walsh (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Minister, how does the Community Pharmacy Agreement provide support for pharmacists to provide services to Australians? Is the government planning to extend the existing agreement?

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

Yesterday the Minister for Health and Aged Care announced that the government will soon commence negotiations for an eighth Community Pharmacy Agreement. This agreement supports patient access to PBS subsidised medicines, programs and related services through community pharmacies across Australia. In the budget, we announced that savings from 60-day prescriptions will be reinvested into community pharmacy, and we are delivering on that commitment. Every single dollar saved by the government under this measure will be reinvested back into community pharmacy to ensure the ongoing strength of this essential sector. This includes by doubling the total budget of the regional pharmacy maintenance allowance, increasing the budget for community pharmacy programs, introducing nationally consistent pharmacy payments for opioid dependence treatment services, broadening funding for a number of immunisation program vaccines, increasing the regional pharmacy transition allowance and increasing payments for services like dispensing, handling, admin and infrastructure by seven per cent more for all community pharmacies.