Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

I move: That this bill be now read a second time.

It is a privilege to introduce the National Health Amendment (Cheaper Medicines) Bill.

This Bill delivers on the Government's promise to deliver cheaper medicines for all Australians.

Delivering cheaper medicines is one of the key pillars supporting our promise to Strengthen Medicare, alongside more bulk billing, more doctors and nurses and more urgent care clinics.

Making medicines cheaper is not just good for the hip pocket, as important as that is; it's also good for your health.

This Bill builds on the actions taken by the Government to deliver cheaper medicines during the 47th Parliament.

In July 2022, we slashed the safety net for pensioners with more free and cheaper medicines, sooner, with a 25 per cent reduction in the number of scripts a concessional patient must fill before the Pharmaceutical Benefits Scheme (PBS) Safety Net kicks in.

That change has already delivered 73 million additional free scripts, saving pensioners over half a billion dollars.

Then in January 2023, the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a general script falling to $30, from $42.50.

Already that has saved general patients $770 million in their hip pockets.

Beginning in September 2023, we introduced 60-day prescriptions for common saving time and money for millions of Australians with an ongoing health condition.

That has saved Australian patients around $250 million and allowed them to avoid 35 million unnecessary trips to the pharmacist.

In January this year we froze the cost of PBS medicines, with co-payments not rising with inflation for all Australians for the first time in 25 years.

Together these four measures the Government has already implemented have saved patients saved patients $1½ billion in the cost of medicines.

But we are determined to do more to make medicines even cheaper.

This Bill represents the fifth wave of reform to deliver cheaper medicines.

As a result of the changes made by this Bill, the maximum Australians will pay for PBS medicines drops from $31.60 down to $25.00, which is a saving of nearly 21 per cent.

The last time a general patient's PBS co-payment was below $25.00 was in 2004, over 20 years ago.

The amendments made by this Bill will ensure that all Australians who don't hold a concession card will have access to more affordable medicines.

The PBS is the primary mechanism through which the Government subsidises access to prescription medicines and is a key component of Medicare, providing significant direct assistance—$18.0 billion in 2023-24—to make medicines affordable for Australians.

The PBS represents a significant component of the Commonwealth's investment in Australia's health system.

To assist in achieving sustainability of the PBS, patients contribute a co-payment towards the cost of their PBS subsidised medicine and the Commonwealth pays the remaining cost.

While many PBS medicines cost significantly more than the patient contribution, the patient co-payment for the 2025 calendar year is $31.60 for general patients (that being, patients who are not concessional card holders) plus any applicable brand premiums.

This Bill amends the National Health Act 1953 to reduce the general patient co-payment to $25.

This allows Australians to continue to access affordable medicines which in turn will reduce the cost of living by providing a significant reduction to the general patient PBS co-payment.

From 1 January 2026, over 5.1 million Australians will pay less for their Pharmaceutical Benefits Scheme (PBS) prescriptions.

This commitment will provide savings to general patients of over $200 million each year, continuing to give more savings to general patients once the 2025 one-year general patient co-payment freeze finishes on 31 December 2025.

The reduction to $25.00 provides immediate cost of living relief to patients without a concession card, while also ensuring the PBS remains a sustainable investment for government. This level of investment was selected to ensure it does not come at the expense of priorities such as:

investment in other essential health services, such as bulk billing; and

The general patient co-payment will continue to be indexed on 1 January each year in line with existing indexation arrangements.

Indexing from 1 January 2027 will be calculated off the new general co-payment amount—$25, thereby saving patients' out-of-pocket costs well into the future.

This Bill delivers on a significant commitment made prior to the election; it builds on earlier actions undertaken by the Albanese Government to deliver cheaper medicines and it helps Strengthen Medicare and improve the health of all Australians.

I commend the bill to the House.

Debate adjourned.