Government’s bold medicines policy falls short of delivering promised savings

A health reform designed to cut costs for patients, free up clinician time, and deliver savings to the federal budget is failing to reach its potential

The federal government introduced 60-day prescribing in 2023, allowing consumers to receive double the quantity of medicines per script. The policy was positioned as a win-win: fewer GP and pharmacy visits, and savings of up to $190 a year per medicine or $46 for concession card holders, compared to traditional 30-day scripts.

Yet, more than a year later, the policy has not met its potential of delivering promised savings.

After a bitter battle with the Pharmacy Guild, which warned of pharmacy closures, drug shortages, and even child overdoses due to pill hoarding, the government pushed through the health reform. In response to the backlash from the Guild, it handed rural pharmacies $20 million annually in direct compensation and fast-tracked the eighth Community Pharmacy Agreement (8CPA) – a deal that poured an additional $3 billion into the sector.

Recent analysis from the Grattan Institute shows that while nearly 300 drugs for chronic conditions have been made eligible in three rollout stages, uptake remains lower than expected. For medicines included in the first rollout – statins, perindopril, alendronate – only 30% were prescribed via a 60-day script by November 2024. The government had projected 45% uptake in 2023–24, rising to 58% in 2024–25 and 63% by 2026–27. The reality: just 21% of all eligible medicines are currently dispensed under the 60-day model.

Even with that low uptake, the reform has saved consumers more than $110 million – proof that the policy works, if used. But millions are missing out. In 2024 alone, 28 million 30-day statin scripts were issued, compared to just 5 million 60-day scripts. Had half of those patients accessed longer prescriptions, they would have saved another $27 million – for just one drug class.

Across all eligible medicines, raising 60-day script use to 50% could have delivered an extra $310 million in patient savings – more than the government’s much-publicised “$25 medicines” election pledge, which is projected to save only $200 million.

Meanwhile, the government itself is leaving money on the table. It has already saved $141 million through fewer dispensing fees paid to pharmacists. That figure could balloon by $297 million annually if 60-day use hit 50%.

So what’s stopping progress?

Despite the Pharmacy Guild’s efforts to undermine the reform, low uptake is more about doctors than pharmacists as the GP who writes the script determines its duration, not the pharmacist.

Default settings in GP practice systems continue to generate 30-day repeats – and busy doctors aren’t changing them. With many patients unaware of the new 60-day option, the system defaults are going unchallenged.

It’s a massive missed opportunity – not only for budgets, but for relieving pressure on the healthcare system.

The solution is overdue. According to the Grattan Institute, GP software providers must make 60-day scripts the default. The Royal Australian College of General Practitioners (RACGP) should actively encourage the change, and Primary Health Networks must track and report GP prescribing behaviour to encourage uptake.

Consumer awareness also needs a boost. The federal government and consumer groups should run campaigns to inform patients about their options.

In a healthcare system stretched thin, 60-day scripts are a triple win – patient savings, government savings, and more time for doctors and pharmacists to focus on patient care.

Every dollar matters in a system already stretched to its limits. While the health budget is set to rise by 6.6% in nominal terms, real growth – after accounting for inflation – is just 3.9%. The proportion of the budget spent on health is projected to be 15.9% for 2025-26.

Savings from reforms like 60-day prescribing shouldn’t be left on the table – they should be reinvested into a healthcare system that is underfunded, under strain, and overdue for serious reforms.

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