Better Access Australia, an organisation that ‘contributes to public policy debate and works to promote better outcomes in Australia’s social sector’, is calling on the Senate to amend the National Health Amendment (General Co-Payment) Bill to freeze indexation increases to the Concessional PBS Co-Pay until 2025.
Putting a freeze on indexation increases will ensure medicines remain affordable for everyone – including those earning less than $78,000 per year – particularly during these times of unprecedented rises in the cost of living in Australia.
“On 1 January 2023 concessional patients will be facing a price hike of at least 50cents per script from $6.80 to $7.30. For individuals and families on fixed incomes of less than $78,000 per year, this is yet another government-imposed price increase they cannot afford,” Better Access Australia Chair, Felicity McNeill said.
“Right now, the Government is in the process of reducing the General PBS Co-Pay from $42.50 to $30.00 on 1 January 2023 through changes to the National Health Act before the Parliament. This is a part of a suite of reforms Better Access Australia has lobbied for and warmly welcomed, but it only solves half the affordability crisis in medicines affordability.
“The Government needs to protect all patients from the inflationary pressures of the cost of living in these uncertain times. The current Bill does not do this, but including a freeze on indexation of the Concessional PBS Co-Pay will,” she said.
‘Every cent counts’
According to Better Access Australia, the law currently mandates that the Concessional PBS Co-Pay must be increased by CPI on 1 January each year.
Based on the 12-months to August 2022 CPI figure of 6.8%, that means Concessional patients will be facing an increase of at least $0.50 per script on 1 January 2023, from $6.80 to $7.30.
The increase will also impact Aboriginal and Torres Strait Islander general patients who access PBS medicines via the Closing the Gap program.
“Families earning less than $78,000 a year are making choices between feeding their kids, paying their rent, putting fuel in their car, and whether they can afford their medicines, let alone visit the GP to get the script,” Ms McNeill said.
“Every cent counts. Every per cent increase hurts.
“Government shouldn’t be profiting from the inflationary pressures being placed on the community.
“A two-year freeze on indexation being applied to the concessional PBS Co-Pay would help keep medicines affordable for everyone in the community until our economy is back on track.
“In the past three years, we have had bi-partisan support for a reduction in the number of scripts a patient must fill to reach the PBS Safety Net. They have been great initiatives.
“Unfortunately, the Safety Net still requires a concessional patient to pay for 36 medicines before they are protected and yet their average script use is 17 scripts a year. This means the Safety Net reforms are not protecting the majority of people who access medicines on the PBS,” Ms McNeill said.
“We had bi-partisan support for the general co-payment reduction and the changes to the safety net. We need one final all-party commitment to the PBS to ensure that during these times of great financial stress in the community, purchasing a medicine is within reach for everyone, not just some.
“Freezing indexation hikes on PBS co-pay calculations for two years supports the community through these challenging fiscal times but allows for a return to business as usual once the economy has been stabilised by the Government,” Ms McNeill said.
