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Lowering the Costs of Medicines through Changes to Maximum Dispensing Quantities

Announcement date
26 April 2023 

Link to announcement 
https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/cheaper-medicines-to-ease-cost-of-living?language=en

Problem being addressed

Currently, patients with a chronic stable condition are required to visit a pharmacy each month to have their prescriptions filled; pay a PBS co-payment to the pharmacy for each monthly dispensing of their medicine; and visit a general practitioner (GP) or other prescriber for a new prescription every six months. Researchers and consumers have raised concerns regarding the monthly cost of PBS medicines. In November 2019, the Consumers Health Forum of Australia stated that reducing the requirement for consumers on routine medication to visit a pharmacy each month would improve accessibility, convenience and affordability for consumers.

Proposal
This proposal will enable consumers to have an increased maximum dispensed quantity (MDQ) of certain Pharmaceutical Benefits Scheme (PBS) medicines used for common and chronic diseases, as recommended by the independent Pharmaceutical Benefits Advisory Committee (PBAC). An increase to the MDQ will mean that consumers with chronic, stable medical conditions will be able to collect a two-month supply of some medicines rather than a one-month supply, when they fill their script. As well as direct savings on payments to fill prescriptions, patients may realise savings from avoided visits to the pharmacy and to a GP or other prescriber to obtain repeat prescriptions. Pharmacies will receive less dispensing remuneration from the Government, as well as other related income due to the proposed changes. The Government intends to reinvest savings from the proposal to support the development of new and/or expanded existing programs and services by community pharmacy.

Assessed Impact Analysis outcome
Adequate

OIA assessment of the Impact Analysis
Insufficient
Adequate
Good practice
Exemplary
Attachment File type Size
Impact Analysis DOCX 362.33 KB
Impact Analysis pdf 558.15 KB
OIA Assessment docx 57.36 KB
OIA Assessment pdf 253.39 KB
Certification Letter DOCX 76.74 KB
Certification Letter pdf 148.66 KB