The Turnbull Government delivered a win for both consumers and taxpayers when it announced that more than 2000 medicine brands treating common conditions will drop in price from 1 October 2016.
By removing the ‘originator’ or premium brand version of the drug from pricing calculations and using the cost of cheaper generic brands instead, some brands will drop by as much as 50% or more.
Minister for Health and Aged Care, Sussan Ley, stated that one-in-three brands on the Pharmaceutical Benefits Scheme (PBS) would be cheaper for some consumers with savings of as much as $20 per scrip per medicine – or more than $200 per annum. The savings will be even higher for Australians who take multiple medications daily.
More than 80 per cent – or about 1600 – of the 2000-plus brands of medicines set to drop in price would see a direct saving to some consumers. The remaining 20 per cent – those priced above the general PBS co-payment of $38.30 – would see a saving to taxpayers of nearly $900 million over the next 4 years by ensuring that the Government is not overpaying for medicines.
Read the press release here.