TRANSCRIPT
It's a rare United Front between Labor and the Coalition ahead of an election.
“The Pharmaceutical Benefit Scheme is a source of pride for Australians. It is not up for negotiation, and it's certainly not up for sale.”
“I want the Australian people to know, that I will stand up and defend the PBS, which is the envy of the world, against any attempt to undermine its integrity, including by major pharmaceutical companies.”
What united both sides of politics is the Pharmaceutical Benefit Scheme - also known as the PBS - as it's now become a target in the latest round of a tariff war between Australia and the United States.
Introduced in 1948, the PBS allows the government to subsidise medication, and Australian consumers can pay for their prescribed medicine at two set prices, $31.60 or $7.70.
If the original price of the drugs goes beyond $31.60, the government would pay for the exceeded part.
Currently, around 930 prescribed medicines are on the scheme, following the recommendation of the Independent Pharmaceutical Benefits Advisory Committee.
But the scheme has attracted complaints from the US pharmaceutical companies, as they deem the scheme "unfair" and "discriminatory".
And now, as the Trump administration is set to impose tariffs on its trading partners, the country's largest pharmaceutical lobby has written to President Donald Trump, urging him to impose reciprocal measures for Australian-made drugs, in response to impacts of the PBS on American drugs.
The Chief Executive of Pharmaceutical Research and Manufacturers of America, Stephen Ubl, says while he still wants the pharmaceuticals to be excluded from the tariffs for US trading partners such as Europe and Australia, he still wants to see what he calls targeted measures to protect American drug makers.
“Historically, pharmaceuticals have been excluded from tariffs, because, you know, they can lead to increased prices, or shortages of medicine, or exacerbate problems the administration is trying to fix. So we do think they should be excluded, if they are not excluded, they should be targeted, get out some of the non-tariff barriers, as the president has pointed out, in terms of European countries or others, freeload, free riding on END that our companies are investing here in the US.”
According to Federal Health Minister Mark Butler, Australia sells about $2 billion worth of medicines to the US, and US sells around $3.5 billion to Australia.
If the US implemented the tariffs, Americans will have to pay a higher price for Australian imported medicines, but there could still be indirect influences on Australia's pharmaceutical industry.
Facing the US attack on the PBS, Labor has pitched if it wins the election, it will ensure medicines under the PBS will be no more than $25. The Coalition says it will match the pledge if it wins the election.
Greens spokeswoman Sarah Hanson-Young has welcomed Labor's announcement.
“The Greens is supportive of this move, making medicines cheaper for everyone is a good move, but you know, I think we should just get this done, if there's support across the parliament, we should get this done the sooner rather than later. And we urge the government to also move on putting dental into medicare, so that people could afford to go to the dentists.”
But not all medicines are included on the PBS. For instance, Hormone Replacement Therapy patches, which are often used to treat menopausal symptoms, are not included in the PBS.
The PBS is not available to those without Medicare - meaning there are 1.6 million temporary residents in Australia who still have to pay full price for all prescribed medication.
Some have told SBS Arabic that they hope to see more people eligible to the PBS.
VOX POP 1:"For me I don't have a concession card, so I do have to pay full price, and I will consider sometimes to go without"
VOX POP 2:"For me it's way way easier, I mean, a lot of people like, for me, myself, I can thank god that I can afford pay for my kids and family, but you see other people can not buy really what they need.”
