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Legislative bills

Parliament of Australia Supports National Health Amendment (Cheaper Medicines) Bill 2025

Strategic Insights

— 1 min read

Australians may benefit from reduced out-of-pocket expenses for essential medicines, following the introduction of the National Health Amendment (Cheaper Medicines) Bill 2025. The legislation aims to ease financial burdens on patients and improve access to vital treatments. However, concerns have been raised about the bill's limitations, particularly the high PBS safety net threshold and the outdated assessment process for new medications.

Key Takeaways:

  • The National Health Amendment (Cheaper Medicines) Bill 2025 aims to reduce the PBS co-payment from $31.60 to $25 for patients with a concession card, saving patients nearly $800 million over four years.
  • The bill expands access to vital treatments, covering conditions like breast cancer, endometriosis, menopause, and rare diseases, affecting thousands of Australians.
  • The general PBS safety net remains high, requiring nearly $1,700 in annual spending before additional subsidies or support apply, leaving many low-income patients vulnerable to high out-of-pocket expenses.
  • A 2020 House committee inquiry showed that Australia lags behind in access to new medicines, taking an average of 466 days from the Therapeutic Goods Administration's approval to PBS listing.
  • Minister Butler has committed to reforms and implementing the 50 recommendations from the health technology assessment, with some progress made but more work needed.
  • An amendment to the bill, supported by the author, draws attention to the delay in implementing the health technology assessment recommendations.

Statistics:

  • The National Health Amendment (Cheaper Medicines) Bill 2025 is estimated to save patients nearly $800 million over four years.
  • The general PBS safety net requires nearly $1,700 in annual spending before additional subsidies or support apply.
  • Australia lags behind in access to new medicines, with an average of 466 days from the Therapeutic Goods Administration's approval to PBS listing.
  • A 2020 House committee inquiry recommendation highlighted the need for reforms in the assessment process for new medications.

Sources:

  • House of Representatives, Committee of Inquiry into the Economics of Medicines (2020)
  • Therapeutic Goods Administration, Australian Medicines (no date)
  • Senator Anne Ruston, Minister for Health (no date)
  • Ms. Chaney (Curtin), Parliament of Australia (12:43, 2025)

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