‘Major win’: Albanese promises to cap cost of PBS medications

Prescription medicines will be capped at $25 per script under a major cost-of-living election promise set to be unveiled by Anthony Albanese on Thursday.

The announcement will apply to medications listed on the Pharmaceutical Benefits Scheme (PBS) and bring down the maximum cost of prescriptions, which is currently $31.60, by 20 per cent.

It’s estimated four out of five prescriptions will benefit from the new cap, with patients estimated to save $786m over four years.

Common medications included will include: Estrogel, used by women undergoing menopause and perimenopause: diabetes medication like Jardiance; and Ritalin LA, which is used to treat ADHD.

Medications for concession cardholders and pensioners will remain at the current subsidised rate of $7.70 until 2030.

The Prime Minister will detail the $689m announcement in a major speech on Thursday.

“Cheaper medicines is another way we are helping with the cost of living, while putting downward pressure on inflation – our number one focus,” he said.

“With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: we’ve got your back.”

Health Minister Mark Butler said the policy would bring PBS-listed medicines to 2004 prices, when they were capped at $25.

He also took a shot at Peter Dutton for increasing the cost of scripts during his stint as health minister from 2013-14.

“Peter Dutton tried to jack up the cost of medicines by up to $5 a script and put free medicines for sick pensioners even further out of reach,” he said.

“In opposition, Peter Dutton and the Liberals voted to block cheaper medicines six times

“The contrast this election is clear: cheaper medicines with a re-elected Albanese Government, or the frankly terrifying legacy of Peter Dutton, who wants medicines to cost more, not less.”

The promise of cheaper medicines follows a string of healthcare announcements anchored by Labor’s centrepiece $8.5bn bid to boost bulk-billing rates 18 million appointments a year.

The policy was immediately matched by the Coalition after it was announced in February.

The Consumers Health Forum of Australia (CHF) has welcomed the Prime Minister's announcement.

“This is a major win for Australian health consumers and something CHF has consistently advocated for,” CHF chief Dr Elizabeth Deveny said.

“What we have heard from consumers ever since the rise in cost-of-living is that they have had to choose between paying for essentials or filling their prescriptions.

“Helping Australians better afford their medicine provides people with dignity and provides better health outcomes including preventing avoidable hospital admissions. It benefits the entire system.”

However, Dr Deveny has called for clearer messaging around how PBS pricing works so that consumers don't miss out on the benefits they are entitled to.

“Too many consumers don’t know what to expect when they get to the pharmacy counter, or how to make the most of PBS benefits,” she said.

“Without better public information and modernised systems, people will continue to fall through the cracks. Australians deserve to know what’s available to them.”