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Millions to get cheaper medicines

Millions of Australians will see the cost of their prescriptions fall from January as the budget seeks to ease cost-of-living pressures through access to cheaper medicines.

Treasurer Jim Chalmers’ first budget handed down on Tuesday will see the maximum general co-payment for Pharmaceutical Benefits Scheme scripts slashed from $42.50 to $30, saving up to $12.50 per script for up to 3.6 million Australians.

The nearly $200 million investment means someone taking two or three medications could save as much as $300 to $450 a year.

“The ABS advises that the high costs of medications meant close to one million Australians delayed or didn’t fill their medications in 2019-20,” Health Minister Mark Butler said last month as he announced the change.

“We must do better than this and we will. Cutting their price by nearly one third will mean more people can afford to get the medications they need to stay healthy – without worrying so much about the price. This change will put close to $200 million back in the pockets of Australians each year.”

The budget also provides $1.4 billion for new and amended listings to the PBS, including treatments for various types of cancer and growth hormone deficiency in children.

Meanwhile, a $3.6 billion revamp of Medicare will be spearheaded by $235 million to establish 50 urgent care clinics to reduce pressure on the hospital system.

That includes $100 million to “co-develop and pilot innovative models with states and territories to improve care pathways and inform program rollout”, budget papers state.

“These clinics will reduce pressure on hospital emergency departments and make it easier for Australian families to see a doctor or nurse when they require urgent, but not life threatening care.”

The government is also setting aside $750 million for the Strengthening Medicare Fund to provide better access and care for patients.

How exactly the money is spent will depend on the recommendations of the Strengthening Medicare Taskforce, which is scheduled to report by the end of 2022.

The budget also includes $452 million to support the establishment of world-class cancer centres in Brisbane and Adelaide.

“This budget invests $6.1 billion more in hospitals, in Medicare, in extending Covid-19 support, and in expanding access to health care in the suburbs and regions of our country,” Dr Chalmers said in his speech.

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