Painful cost of medicine
A NEWS Corp investigation has found that pharmacists are adding up to five additional charges to the price of some prescription medicines.
The problem has been made even worse by a new agreement reached in secret between the Pharmacy Guild of Australia and the Federal Government.
Some discounters add fees of just $3 to the manufacturers’ price, while smaller pharmacies add as much as $18.11.
PHARMACISTS are adding up to five additional charges to the price of some prescription medicines that nearly quadruple the cost.
A News Corp investigation has found the problem has been made even worse by a new agreement reached in secret between the Pharmacy Guild of Australia and the Federal Government.
The price of the most commonly used prescription medicines plummeted after they came off patent in recent years, with 14 of the most common prescribed drugs now costing less than $6 when they leave the manufacturer’s door.
Some, such as the antibiotic amoxicillin, cost as little as $1.20 per pack to produce.
However, under a deal reached between the Pharmacy Guild and the government, chemists are permitted to add five separate fees totalling $18.11. The fees, which cover the cost of pulling the packs off the shelves and sticking a label on them, can be even higher for more expensive medicines.
The charges are set out in the Seventh Community Pharmacy Agreement, which governs what chemists can charge for medicines supplied under the nation’s medicines subsidy scheme. The extra fees include:
■ A wholesale mark-up worth 41 cents from January 2021;
■ An administration and handling fee of $4.28;
■ A dispensing fee of $7.74;
■ A safety net recording fee of $1.29; and
■ An additional allowable patient charge of $4.39.
It can also be revealed the price of the most commonly prescribed medicines could rise by up to 67 cents per script from January as a result of this new agreement, which was signed in June.
Consumers Health Forum chief Leanne Wells said she was disappointed the fee arrangement did not give more weight to proposals for greater input from consumers and more transparency.
Consumer health groups were banned from taking part in the negotiations over the increased charges which are well in excess of inflation.
But Pharmacy Guild of Australia president George Tambassis, whose organisation represents 3500 pharmacy owners, said the fees were fair.
“The prices you have listed for general patients include the dispensing fee, which is appropriate recognition of the professional service and clinical responsibility of the pharmacist,” Mr Tambassis said.
“Consumers can and do shop around for the best price if that is their priority.”
News Corp found discount pharmacies rarely added all the pharmacy charges when they supplied a general patient. Some added total fees of just $3.
Pharmacist Anthony Allan, who runs four Chemist Warehouse stores, said the chain had saved consumers more than $50 million by passing on a $1 discount on all scripts.
Rival chemist chains could offer customers the same discount but failed to do so, he said.
Chemist Warehouse was able to charge as little as $5.60 for many scripts because of the huge volumes they sold.
“There is no smoke and mirrors. We have buying power and we pass on the savings, we don’t take any cream off the top,” Mr Allan said.
Cancer patient Kate Marie Thorpe, forced to work full time as she undergoes gruelling treatment so she can pay medicine bills of up to $300 per month, said she was shocked at how much variation there was in medicine prices.
She takes five medications to treat metastatic breast cancer.
“The bill can vary from around $150 to around $300 depending on where I go,’ she said of her monthly prescription costs.