The price of more than 1,000 different generic drugs was reduced in April as part a series of reforms to the Pharmaceutical Benefits Scheme (PBS), an Australian government program that provides subsidized prescription drugs to all residents. Benefits under the PBS may only be supplied by pharmacists and medical practitioners approved under the National Health Act 1953, and only for drugs listed in the Schedule of Pharmaceutical Benefits.
Prior to the reform, the government paid full price for older medications even when the manufacturers sold generic versions at lower prices to pharmacies once a drug’s patent expired. The reform aligns the government price for these medications with the market price, benefiting taxpayers and consumers.
This change combined with other drug price reductions is expected to deliver more than $1.9 billion in health savings over five years.
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