Transcript: ABC Radio – PBS co-payment freeze
On 1 January 2025, the Federal government introduced a freeze on the maximum patient cost for all PBS medicines. The freeze will be for one year for general patients and there will be a 5-year freeze for pensioners and other Commonwealth concession card holders. AMA SA President told ABC Radio Adelaide access to affordable medication is essential.
Transcript: AMA SA President Dr John Williams on ABC Adelaide Statewide Drive with Emma Pedler. (31 December, 2024)
Subjects: PBS, medicine, Medicare, general practice
EMMA PEDLER: We're looking at the positives that happened in 2024 today and how that might lead to better things in 2025. The term PBS indexation freezes. It's not a pharmaceutical icy pole for your summer, but it sure might taste sweet for many with health conditions that require long term medication. A bit of a backstory. The PBS actually started in 1948 with the idea of giving free medicine to pensioners, who were prescribed one of the then 139 listed medicines, and 76 years later, it's expanded to provide timely, reliable and affordable access, according to their website, to necessary medicines for all Australians, at least those with a Medicare card, as part of the government's national medicines policy. It actually includes those who Australia has a reciprocal healthcare agreement with so that also includes the UK, Ireland, New Zealand, Malta, Italy, Sweden and the Netherlands, Finland, Norway, Belgium and Slovenia. If you didn't know that's something I learnt today or this year, so you're welcome. But let's circle back to what this PBS indexation freeze might mean. Dr John Williams is the South Australian president of the Australian Medical Association, the AMA. Good afternoon. What's an indexation freeze mean?
DR JOHN WILLIAMS: Well, the most important one is for pensioners and concession card holders. And the freeze is until 2029. So prescription medication that's under the PBS, which is most of the really important medication, pensioners, all they have to pay is $7.70. So that will stay the same until 2029. For other people who are not pensioners or concession card holders, the gap they pay is $31.60, and that will stay the same until the middle of next year. So not quite as positive for them, but certainly for pensioners and concession card holders. You know, that's really great that they've got that cheap access to essential medication.
EMMA PEDLER: If people aren't doing well and require medication on the PBS, does that often lead to the possibility that some of those people might not be able to work?
DR JOHN WILLIAMS: Yes, absolutely. A lot of the medication on the PBS is absolutely essential to keep people well and to keep them well enough to work. So it's really a crucial thing. It might be, someone who's diabetic - keeping them well on insulin - someone with high blood pressure - reducing the risk of heart attack and stroke. Also people with really severe conditions like rheumatoid arthritis -the new medications for those are amazing and keep them amazingly well, but they're extremely expensive. So if they had to pay for them out of their own pocket, it would be thousands a month. Under the PBS, it's 4% for pensioners, $7.70, and for other people $31.60. So it's a reminder of what an amazing country we live in, you know, that we are able to have access across the community to essential medications. We really are lucky.
EMMA PEDLER: So freezing the pay increase or keeping it at $7.70 until 2029, what kind of benefit do you think that's going to have for these patients on these meds?
DR JOHN WILLIAMS: It'll be a cost saving for them as well as for a lot of medication. There's what's called 60 day prescribing. So whereas previously they just got a month's supply of medication with each scrip, a lot of medication, like blood pressure medication and cholesterol medication, they'll get two months supply. And that'll be for the same amount as once a month supply for them. So again, that'll be a cost saving as well. So going into the future, it's small amounts, but that adds up. And that's really important for people who, you know, are really struggling to make ends meet.
EMMA PEDLER: Has there been any word if because of how people have had to kerb their budgets this year, if they're forgoing medicine just to keep the roofs over their heads?
DR JOHN WILLIAMS: Yeah, I think think it is a budget pressure now, the cost, for healthcare has gone up. Even people with private health cover, the gap payments and those kind of things have gone up. So the cost of healthcare has gone up. Not perhaps as much as power, but certainly the cost of healthcare has gone up overall. And that is a concern. It would be great to see access for all Australians to the best healthcare, regardless of what their income is.
EMMA PEDLER: Before I let you go, was there a standout highlight for doctors in 2024?
DR JOHN WILLIAMS: As a rural GP the news that all of the training positions for next year had been filled for rural as well as city training positions is great to hear. It’s great to hear that young doctors are interested in general practice. I know that it's a fantastic career and really satisfying, and it's great to see that interest in it.
EMMA PEDLER: Well, let's hope that bodes well for country communities moving forward. Dr John Williams, the president of the South Australian branch of the Australian Medical Association.
