Labor reveals health pledge to cap cost of prescriptions
Australians will pay no more than $25 a prescription for certain medicines under a federal government plan to lower prices.
From January 1, the maximum amount patients would pay for prescription medicines listed on the governmentâs subsidy scheme will fall from $30 to $25, if Labor is re-elected.
Four out of five Pharmaceutical Benefits Scheme (PBS) prescription medicines would become cheaper, saving Australians $200 million every year and reducing the programâs patient cost cap to its lowest level in two decades.
âCheaper medicines are good for the hip pocket and good for your health,â Health Minister Mark Butler said.
The $689 million proposal will be included in the federal budget, to be handed down on Tuesday, and is part of Laborâs broader platform to improve Australiaâs healthcare system.
The Coalition was quick to match the proposal.
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âWith cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: Weâve got your back,â Prime Minister Anthony Albanese said.
Albanese later declared the nationâs pharmaceutical scheme is ânot for saleâ, amid fears the US may soon target prescription medications for tariffs.
âOur Pharmaceutical Benefits Scheme is not for sale. Labor created it, Labor is strengthening it, and under Labor, it never will be on the negotiating table,â he said on Thursday.
âWhat weâre going to do is continue to advocate for Australiaâs national interests, not the interests of Big Pharma.
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âThe act of increasing tariffs, of course, is always an act of self harm, putting increased costs on people who are consumers, where the tariff is imposed, increased costs on them doesnât change the costs of Australians.â
According to Treasury estimates, US President Donald Trumpâs 25 per cent tariffs on all steel and aluminium imports are expected to directly impact Australiaâs GDP by less than 0.02 per cent by 2030.
But pharmaceuticals represent a bigger slice of the US-Australia trade relationship and American pharmaceuticals representatives are pushing the Trump administration to impose further tariffs and have said Australia should be placed on a âwatch listâ.
âEgregious and discriminatory pricing policies in several markets, including Canada, Japan and Korea, continue to undervalue American innovation, threaten billions of dollars in lost sales and put American competitiveness, jobs and exports at risk,â Pharmaceutical Research and Manufacturers of America wrote in its submission.
The group claims PBS listings dictate access to the Australian market but said âunnecessaryâ supplemental data requests and other administrative motions caused significant delays.
It said the PBSâs pricing policies could have a âchilling effectâ that prevented Australians from gaining fast access to new medicines.
The federal government continues to negotiate for tariff exemptions with the US administration.
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