WHY MOST PEOPLE WON’T GET MEDICINE PRICE CUTS

THE vast majority of Australians will not benefit from the $10-$12.50 price cut to prescription medicines announced by both major parties, it can be revealed.

The Labor and Coalition pledges, detailed at the weekend, will only apply to less than three per cent of people who get subsidised prescription drugs.

And it reveals a dirty little secret about the nation’s medicine subsidy scheme.

The price of medicines has been falling so sharply in the past ten years as drugs come off patent, most no longer attract a government subsidy even though they remain on the PBS.

A drug is only subsidised by the government for general patients if it costs more than $42.50.

Analysis by the Pharmacy Guild last year showed almost three in every four scripts dispensed to general patients under the PBS already cost less than $19.

The measly nature of the discount promised by the major parties is underlined by the $150 million a year cost.

To put that in perspective it’s less than one per cent of the annual $13.6 billion price tag for the nation’s medicines subsidy scheme.

If you are a pensioner or concession card holder you will not benefit from the price cut at all because you only pay $6.80 per script.

And most general patients won’t benefit either because the price cut only applies if the medicine they buy cost more than $30 per script in the case of the Labor Party, or $32.50 per month in the case of the Coalition’s promise.

Many of the biggest-selling prescriptions in Australia cost around $22 in a suburban pharmacy and less than $10 if you buy them at a discount chemist.