Ensuring a sustainable health system

With its ageing population, Australia faces significant long‑term pressures on health costs. Steps are needed now to ensure the health system remains sustainable and to maintain the high quality of our health care.

Keeping the Medicare Safety Net affordable will keep it in place. Adjusting the threshold levels will ensure the Government can continue to cover 80 per cent of out‑of‑pocket costs for non‑hospital health services over the thresholds.

The Medicare Safety Net will remain a generous protection against high medical expenses, with over $1.1 billion in benefits expected to be paid over the next four years.

The Government is keeping the Pharmaceutical Benefits Scheme (PBS) sustainable, introducing initiatives such as the 12.5 per cent mandatory price reduction for new generic medicines and a phased increase in the PBS Safety Net thresholds.

Needed reforms in medicine distribution and retail are being negotiated through the next Community Pharmacy Agreement.

Such reforms will ensure Australians continue to have affordable access to the drugs they need, including through the listing of new innovative medicines as they become available.

Since the last budget, over 70 items have been added to the PBS, including high-cost drugs to treat high blood cholesterol, schizophrenia and bipolar disorder.

And to enhance the long-term health of Australians, the Government is increasing its investment in health promotion and prevention activities.

Building on its successful drive to increase child immunisation rates to above 90 per cent, the Government is funding new vaccines for chickenpox and polio at a cost of $139 million.

A new National Tobacco Youth Campaign will help further reduce tobacco use and discourage young Australians from taking up smoking.