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Legislative bills

Cheaper Medicines Bill 2025: A Step towards Affordable Healthcare

Strategic Insights

— 2 min read

The National Health Amendment (Cheaper Medicines) Bill 2025 aims to make medicines more accessible and affordable for Australians by reducing the cap on the cost of listed medicines from $31.60 to $25, as proposed by Mr. Repacholi, the Member for Hunter. This change is expected to save Australians over $200 million every year and provide significant relief to families and individuals struggling to make ends meet. The bill builds on previous efforts to make medicines cheaper, including the 2023 reduction in the maximum cost of a general script from $42.50 to $30.

Key Takeaways:

  • The Cheaper Medicines Bill 2025 aims to reduce the cap on the cost of listed medicines from $31.60 to $25, expected to save Australians over $200 million every year.
  • This change will benefit families and individuals, including those in the Hunter, who are struggling to afford medication and other essentials.
  • The bill also includes a 20% cut to the maximum cost of a PBS medicine, which is equivalent to a permanent 20% saving on something that individuals actually need – their health.
  • Henry, a constituent of Mr. Repacholi, has saving $75 every month or $800 every single year since the 2023 reduction in the maximum cost of a general script from $42.50 to $30.
  • The bill has introduced 60-day prescriptions, cutting the number of trips to the pharmacy in half for people with chronic conditions, saving time and money.
  • The bill has frozen the cost of PBS medicines so that co-payments will not rise with inflation, the first time this has happened in 25 years.
  • The bill has reduced by 25% the number of scripts concessionally funded parents need to fill before the safety net kicks in.
  • The bill has locked in a freeze on concession medicines costs so pensioners and concession card holders will not pay more than $7.70 a script until 2030.
  • Four out of five PBS medicines are now cheaper, thanks to the $689 million investment from the government.
  • The bill protects discounting pharmacies that currently offer discounts, allowing consumers to continue shopping around and benefiting from competition.

Statistics:

  • $200 million: the expected savings for Australians every year from the reduction in the cap on the cost of listed medicines.
  • $23 million: the monthly savings for individuals and families who need three scripts a month.
  • $230: the yearly savings for individuals and families who need three scripts a month.
  • $689 million: the investment from the government that has made four out of five PBS medicines cheaper.
  • $31.60: the current cap on the cost of listed medicines.
  • $25: the proposed new cap on the cost of listed medicines.
  • 60 days: the new prescription period for PBS medicines, cutting the number of trips to the pharmacy in half for people with chronic conditions.
  • 25 years: the time since the last freeze on concession medicines costs.
  • 2026: the year when the change in the cap on the cost of listed medicines will come into effect.

Sources:

  • Mr. REPACHOLI (Hunter)
  • Australian Parliament's Hansard (18:41)
  • National Health Amendment (Cheaper Medicines) Bill 2025

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