Prescription drugs could become cheaper

Pharmacists will be able to continue dispensing medicines to Australians around the country, after a $18.9 billion distribution deal cleared parliament.

Over-the-counter painkillers in a pharmacy

Pharmacists will be able to continue dispensing medicines to Australians in a new distribution deal. (AAP)

Some medicines could become cheaper after the government's multi-billion dollar deal with pharmacists cleared parliament.

A bill to implement the sixth community pharmacy agreement passed the Senate with Labor and Greens support on Tuesday, seven days before the previous five-year agreement ran out.

The $18.9 billion deal, signed off with the Pharmacy Guild of Australia in May, allows 5450 community pharmacies to continue dispensing medicines under the Pharmaceutical Benefits Scheme.

It includes a $1 optional discount on prescriptions to encourage competition.

The discount will come from the coffers of pharmacists and could save taxpayers $360 million over five years.

While Labor and the Greens backed the package, both were frustrated by the government's delay in coming to an agreement.

Despite having 12 months to shake hands with the Pharmacy Guild on a deal, the legislation was rushed through in the final days before the expiry of the existing agreement.

A lack of consultation and scrutiny were Labor's main concerns.

But the government says the deal is the result of extensive negotiations and includes ideas from a wide range of sectors.

Greens leader Richard Di Natale also questioned whether including so many measures in the one bill was a strategy to force the Senate to wave them through.

"The Senate is being asked to rush through a major piece of legislation because the government delayed coming up with an agreement," he told the upper house on Tuesday.

The Pharmacy Guild has rejected the $1 discount on prescription drugs, but accepts that's a matter for government.

But both Labor and the Greens welcomed the measure which could save pensioners up to $40 a year.

"It's disappointing the Guild would oppose a very small discount," Senator Di Natale said.

Opposition senator Jan McLucas noted because the safety net remained unchanged, no one could be worse off under the discount measure.

Health Minister Sussan Ley later thanked senators for realising the bill was a "win-win for consumers and taxpayers" and allowing its passage.

"Consumers are the big winners from the passing of this package, with the overall price of thousands of common medicines to fall by upwards of hundreds of dollars per year," Ms Ley said in a statement.

Both Labor and the Greens also supported a five-year extension to location laws that prevent anyone establishing a pharmacy within 1.5 or 10km from another one, depending on the region.

But these long-standing rules were one of Liberal Democrat David Leyonhjelm's main concerns over the package he labelled a "proper curate's egg, good in parts".

He failed to amend the legislation to allow people to open a pharmacy "wherever they like", including within supermarkets such as Coles or Woolworths.

The $18.9 billion deal is a $3.5 billion increase on the fifth community pharmacy agreement, which expires on July 1.


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Source: AAP


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