Australians are delaying prescriptions, skipping doses and even taking expired medication as the cost of medicines not covered by the Pharmaceutical Benefits Scheme (PBS) continues to rise, despite the Federal Government’s flagship “Cheaper Medicines” reforms.
According to a new report by the McKell Institute, 43% of Australians have been prescribed medicines that are not listed on the PBS, leaving them exposed to full out-of-pocket costs, with non-subsidised prescriptions often costing hundreds of dollars.
The findings highlight a structural gap in Australia’s medicines system. While the Albanese Government’s policy reduced the maximum co-payment for subsidised prescriptions from $31.60 to $25 and extended scripts to 60 days, these savings apply only to drugs listed on the PBS.
The report notes that although 949 medicines are currently subsidised, around 3,800 prescription medicines are approved for use in Australia, meaning roughly three-quarters fall outside the scheme.
This gap is widening as new medicines enter the market faster than they are added to the PBS, with delays between approval and listing now exceeding 600 days in some cases. As a result, many patients are being prescribed treatments that are clinically recommended but financially out of reach.
Across the broader population, cost pressures are driving widespread changes in behaviour. Among prescribed non-PBS medicines, 29% of survey respondents said they delayed purchasing them and 24% did not purchase them at all.
A further 16% said they went without essentials such as food and groceries to afford their medication. Fifteen per cent reported skipping doses to make medication last longer, while 12% took expired medication, and 11% took less than the prescribed amount.
Overall, the report found nearly one in five Australians are unable to afford medicines prescribed to them when those medicines are not subsidised.
The financial strain is particularly acute for frequent users of the healthcare system, older Australians and those on lower incomes, who are more likely both to be prescribed non-PBS medicines and to take cost-cutting measures.
Despite these pressures, the report found strong public support for expanding government investment in medicines, with 89% of respondents saying they support increased funding to ensure more medicines are available through the PBS, including a majority who said it should be a top policy priority.
McKell Institute Chief Executive, Edward Cavanough, said the findings revealed a significant policy gap.
“The Albanese Government deserves credit for the Cheaper Medicines reform which has delivered genuine relief to millions of people, but this research shows that the policy isn’t helping almost half of all Australians,” Cavanough said.
“Nearly half of all Australians are prescribed medicines that aren’t on the PBS and for many of them, the situation is dire.
“When people are taking expired medication because they can’t afford to refill their script, it quickly changes from a minor policy gap into a serious public health problem.
“The government has shown it is willing to act boldly on medicines policy but the question now is whether it is willing to go further.
“It’s clear the public is ready for the next stage of reform.”
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