The Federal Government has announced reforms to the Pharmaceutical Benefits Scheme (PBS) that will reduce the prices of over 1000 generic drugs, with some prices set to drop as much as $15 per packet.

 

Federal Health Minister Tanya Plibersek said that the reforms to the PBS will see generic versions of 60 different types of medicines will be cheaper for general patients when they fill their script starting this month.

 

Ms Plibersek said under the PBS Price Disclosure program the price paid for the cholesterol lowering drug Simvastatin, sold under many brand names, will be up to $14.64 cheaper for a packet of 30, 40mg tablets.

The estimated savings for patients average $3 a packet or up to $1.6 billion over the next 10 years.

 

As part of these reforms, price disclosure and other price reductions will also deliver over $1.9 billion in health savings for taxpayers over five years, which will ensure the PBS remains sustainable and that health dollars can be spent adding new life-saving drugs to the scheme.


“Previously, when medicines came off-patent, they could be sold far more cheaply under different brand names, but they were still eligible for the full reimbursement amount under the PBS,” Ms Plibersek said.


“Price disclosure means the price the Gillard Government subsidies medicines for is being brought into line with the market price, ensuring the cheapest possible prescriptions for patients.”

 

In its preliminary estimates, the Federal Government estimated the following savings:

  • Up to $8.83 for Alendronate, for osteoporosis.
  • Up to $8.23 for Baclofen, a muscle relaxant.
  • Up to $8.25 for Ciprofloxacin, an antibiotic.
  • Up to $8.66 for Citalopram, for depression.
  • Up to $7.32 for Gemfibrozil, for high cholesterol.
  • Up to $9.48 for Omeprazole, for reflux and ulcers.
  • Up to $7.97 for Paroxetine, for depression and anxiety.
  • Up to $12.90 for Pravastatin, for high cholesterol.
  • Up to $8.49 for Sertraline, for depression and anxiety.

 

A full list of PBS changes can be found here