Chemist war on cheaper scripts
HUNDREDS of thousands of consumers could miss out on a $1 per script medicine discount from New Year’s Day as a war erupts in the pharmacy profession.
From January 1, chemists will be allowed for the first time to discount the price the patient pays for subsidised prescription medicines.
The price for pensioners will rise to $6.20 in line with inflation on January 1, but chemists will be able to sell the medicine for just $5.20 per script.
The price of a subsidised script will rise to $38.30 for general consumers but chemists will be able to sell them the medicine for just $37.30.
In the past government rules have prevented pharmacists discounting the patient co-payment that applied to subsidised prescription medicine. But that changed under a new five-year pharmacy agreement signed earlier this year aimed at creating competition.
Discount chain Chemist Warehouse has already pledged to pass on the discount to all its customers from January 1. But the Pharmacy Guild of Australia, which represents 3000 of the nation’s pharmacy owners, is opposed to the discount because chemists who pass on the discount will lose the money.
“We have a clear position: we oppose it,” Pharmacy Guild president George Tambassis said in September. He said pharmacies advertising they would pass on cheaper scripts were doing “the wrong thing”.
“That’s the trouble with this profession, there is always one or two who will do the wrong thing,” Mr Tambassis said.
The measure will save the Government $373 million over four years because when patients spend less on their medicines it takes them longer to reach the PBS safety net.
When they reach the safety net medicines become free for pensioners and the price drops to $6.10 for general patients.
The Pharmacy Guild says concessional patients who choose to receive a full $1 discount will need to fill an additional 11 prescriptions during the year to reach their safety net and access free medicines.
However, even though patients will take longer to reach the safety net they won’t be worse off because their medicines will be cheaper all year round if they use a chemist that passes on the discount.
“Already, we have seen one large pharmacy discounter spruiking the $1 discount in the public arena without mentioning its safety net impact on concessional patients,” guild spokesman Greg Turnbull said.
Consumers who want the discount should shop around.