Patients have been given a reprieve with the Federal Government shelving plans to increase the cost of prescription drugs, in a move that will cost the budget $20 million a month.
In May, the Government announced co-payments for medicines on the Pharmaceutical Benefits Scheme (PBS) would increase by $5 for general patients, and 80 cents for concession card holders from January 1, 2015.
However, the legislation does not have enough support to pass the Upper House and was today removed from the Senate’s Order of Business, meaning it will not be debated before Parliament rises for the year.
Health Minister Peter Dutton insists it is good policy and said he was determined to get it through.
“It is clear that the Labor Party will not support what is a sensible measure in the Senate and it remains the Government’s policy to implement this change,” he said.
“Whilst the measure is delayed in the Senate, it costs the budget bottom line $20 million a month.”
Mr Dutton said he would continue to negotiate with crossbench senators over the summer break and said he would “be happy to compromise” on the proposed $5 increase.
“We are happy to negotiate if there’s a sensible position that can be arrived at,” he said.
“I think the independent senators will strike a deal on this issue because they want to make sure Medicare is sustainable, they’ve got the same intent as the Government.
“For a drug that can cost about $10,000 per script, people at the moment are paying $6 for each of those scripts.
“We have to get a reasonable balance in place and that’s what the Government has put forward.”
It is not the only fight the minister has on his hands, he is still trying to convince enough Senate crossbenchers to support the proposed $7 GP co-payment.
Labor and the Greens oppose the policy and this week, Federal MP Clive Palmer declared it “dead”.
“Mark my words, there will be no co-payment,” Mr Palmer told reporters on Wednesday.
“It’s finished, it’s wrapped up, it’s been put to bed, it’s not going to happen, finito, gone, no adjustments, no negotiations, no twigging, the co-payment is dead, absolutely dead, finished, gone and buried.”
Mr Dutton admits the “current version” of the policy does not have the numbers to get through but he remains optimistic that a compromise can be found.
“This is a long-running process and we have a start date of July 1 next year for the co-payment,” he said.
“We believe that we’ve still got more time to negotiate and there’s a lot of detail involved in these negotiations.”
Mr Dutton would not rule out bypassing the Parliament and introducing the co-payment via regulation rather than legislation.