The
price of certain prescription medicines will rise on 1 October 2022
and there appears to be some confusion surrounding the subject. After
all Scott
Morrison repeatedly promised that the maximum cost of prescription
medicines would come down across the board by $10.
Now
we find that all the while Morrison & Co had entered into an
agreement which permanently raised the cost to non-concessional
patients of what appears to be hundreds of generic medicines.
Indeed
Morrison appears to have had the terms of a new strategic agreement
with the pharmaceutical industry, the 5 year Medicines
Supply Security Guarantee, done and dusted in early
September 2021 so he was well aware during the April-May 2022 election campaign that he was not be entirely honest with voters.
The
new Labor Government Minister for Health and Aged Care Mark Butler
does not appear to have created a media release on the subject so far
out from implementation of the price hikes and, given that these
price hikes are one of the former Coalition Government’s political
time bombs left behind to cause maximum pain, former Coalition health
minister Greg Hunt is not around to give any sort of
explanation as to why costs are going to go through the roof for many
general patients.
It
is also rather suspicious that it was the Murdoch media who ran with
this story on the last working day of the week.
Journalist Sue Dunlevy ran with at least three different versions of the story on Friday, perhaps proving that confusion was not confined to the general public.
SUE
DUNLEVY in the Townsville Bulletin,
15 July 2022, p.17:
The
price of nearly 1600 prescription medicines is set to rise on October
1 under a deal struck with the generic medicines industry to overcome
drug shortages.
The
nation’s biggest selling scripts including cholesterol-lowering
statins, antibiotics, antidepressants, reflux treatments and diabetes
drugs will increase by up to several dollars a script.
Pensioners
and concession card holders will not be affected, however, and will
continue to pay the set charge of $6.80 a script.
However,
the Department of Health and Ageing said “the price increases may
result in an increase to the maximum general patient charge for
medicines that receive a price increase”.
And
they will also come at substantial cost to taxpayers, who will pay
generic companies sometimes five times as much for medicines as is
paid now.
The
rises are the result of a strategic agreement struck between the
previous federal government and the generic medicines industry to
overcome shortages of medicines.
The
deal affects the top 10 most commonly prescribed medicines on the
Pharmaceutical Benefits Scheme (PBS). These medicines are off patent
and the ex-manufacturer price is currently below $4 a pack.
SUE
DUNLEVY in the Herald Sun,
15 July 2022, p.4:
EXCLUSIVE
The price of almost 900 prescription medicines will rise on October 1
under a deal struck with the generic medicines industry to prevent
shortages.
The
nation’s biggest-selling scripts such as statins, antibiotics,
antidepressants, reflux treatments and diabetes drugs will increase
in price by up to several dollars a script.
The
price hike affects all of the 10 most-prescribed medicines on the
Pharmaceutical Benefits Scheme.
Some
of the medicines, such as the heart drug candesartan, cost just 43
cents a pack. That drug’s ex-manufacturer price will rise to $2.50
– an increase to pharmacists of 480 per cent.
Pensioners
and concession card holders are unaffected.
However,
the Department of Health and Ageing warned: “The price increases
may result in an increase to the maximum general patient charge.”
They will also come at substantial cost to taxpayers who will be
paying generic companies up to five times as much for medicines as is
paid now.
It
is a result of a deal struck between the former Morrison government
and the generic medicines industry.
A
spokesman for Health Minister Mark Butler said: “This was an
arrangement nherited from the former government”.
Pricing
of medicines under the PBS is highly complex. As well as the
ex-manufacturer charge, pharmacists can apply dispensing,
administration and handling fees of up to $18.40.
Discount
chains such as Chemist Warehouse limit these extra fees and for many
of these scripts charge just $5.99. Because they order large
quantities they get discounts on the ex-manufacturer prices.
But
under the new agreement, these discounts are set to end for drugs
priced under $4 – a change that would make it harder for discount
pharmacies to maintain their low prices.
Chemist
Warehouse director Mario Tascone said the company was not planning
price rises at this point.
“Permanently
and artificially raising the wholesale price of prescription
medicines (which will flow directly to the bottom line of drug
companies P & L) seems like an odd thing to do in times where the
cost of living is already rising out of control,” Mr Tascone said.
“Previous
stock shortages were the result of a once-in-a-lifetime pandemic. Not
sure a significant and permanent raising of prices is necessary.”
The Department of Health said on its website global medicine
shortages were disrupting supply of medicines. Requiring companies to
hold up to six months’ supply in Australia would help overcome
this.
It
said the price rises would help manufacturers of low-cost medicine
pay for improvements in the supply chain.
Labor
promised to cut the price of prescription medicines by $12.50 a
script from 2023 but this applies only to medicines that cost more
than $42.50 and will not affect drugs caught up in this new price.
SUE
DUNLEVY in The Mercury,
15 July 2022, p.21:
EXCLUSIVE
The price of nearly 900 prescription medicines is set to rise on
October 1 under a deal struck with the generic medicines industry to
overcome drug shortages.
The
nation’s biggest selling prescriptions, including cholesterol
lowering statins, antibiotics, antidepressants, reflux treatments and
diabetes drugs will increase in price by up to several dollars per
script.
Pensioners
and concession card holders will not be affected by the price rises
and will continue to pay the set charge of $6.80 per script.
However,
the Department of Health and Ageing has warned: the rise might result
in an increase to the maximum general patient charge.
And
they will also come at substantial cost to consumers who will be
paying generic companies up to five times as much for medicines as
they do now.
The
price rises will further fuel inflation which the Reserve Bank
forecasts will peak at 7 per cent in December.
The
price rises are the result of a strategic agreement struck between
the previous Morrison government and the generic medicines industry
to overcome shortages of medicines.
The
deal affects all of the top 10 most commonly prescribed medicines on
the medicines subsidy scheme the Pharmaceutical Benefits Scheme
(PBS).
These
medicines are off patent and the ex-manufacturer price is currently
below $4 per pack. Some of the medicines, like blood pressure
treatment and heart failure drug candesartan, cost just 43 cents per
pack. That drug’s ex-manufacturer price will rise to $2.50.
The
nation’s biggest selling treatment, anti-cholesterol drug
atorvastatin, which costs $2.95 will jump to $3.45. Rosuvastatin will
rise from $1.70 to $2.50.
Anti
anxiety treatment sertraline will go from $1.57 to $2.50, while
asthma treatment salbutamol will rise from $2.61 to $3.11. “This
was an arrangement inherited from the former government,” a
spokesman for Health Minister Mark Butler said.
Most helpfully the federal Dept. of Health has an Excel file listing 1,597 prescription medicine pills, capsules, powders, granules, liquids, ointments, gels, creams, injections, suppositories etc., which are subject to the 1 October price increase - it can be downloaded from here and a two-page fact sheet is available here.
