On 3 June 2024, the Pharmacy Guild of Australia and the Commonwealth Government signed the 8th Community Pharmacy Agreement (8CPA), set to deliver significant cost of living relief for Australians and bolster the community pharmacy network over the next five years.
At the signing ceremony, Prime Minister Anthony Albanese, Health Minister Mark Butler, Guild National President Professor Trent Twomey and Executive Director Gerard Benedet marked the culmination of nine months of intense negotiations driven by a mutual commitment to delivering National Medicines Policy to Australians via the Pharmaceutical Benefits Scheme.
Professor Twomey emphasised how the agreement will benefit patients who rely on the network of more than 6000 community pharmacies across Australia, saying "This Agreement brings cost of living relief in a sustainable way, recognising the critical role of Community Pharmacists in providing world-class, affordable primary healthcare. It solidifies community pharmacies as the most accessible primary health destination for Australians."
Anthony Tassone, the Guild’s 8CPA lead negotiator and National Vice-President for Health Economics and Policy, remarked, "This Agreement is good news for all Australians who rely on their local community pharmacy for medicines, advice, and everyday healthcare services."
The 8CPA introduces several key features designed to enhance affordability and accessibility of healthcare:
- A $1 discount for all Australians, fully funded by the Commonwealth Government, aimed at easing the financial burden on patients accessing PBS medicines, will be phased in.
- PBS copayments will be frozen for up to five years, providing stability and predictability in medication costs.
- Consumer Price Index (CPI) indexation on dispensing fees paid by the Commonwealth Government will help ensure that pharmacy services remain financially viable.
- Pharmacies will receive an additional Administration Handling and Infrastructure (AHI) payment for dispensing 60-day prescriptions.
- A 30% funding increase for everyday healthcare programs delivered by community pharmacies, such as Dose Administration Aids, Indigenous Dose Administration Aids, MedsChecks, Diabetes MedsChecks, and Staged Supply Programs.
- The weekly base cap for pharmacies providing Dose Administration Aids will be increased, enhancing support for these essential services and improving access for patients.
- An increase in the Regional Pharmacy Maintenance Allowance will benefit the 1,226 pharmacies serving regional Australia, ensuring sustained healthcare access in these areas.
Since their inception in 1990, Community Pharmacy Agreements between the Commonwealth and the Pharmacy Guild have played a crucial role in ensuring the equitable and timely supply of PBS medicines across Australia. These agreements provide much-needed certainty for the government and community pharmacies, facilitating the effective delivery of PBS medicines for the maximum benefit of patients.
The 8CPA, which will come into effect on 1 July 2024 and remain in place until 30 June 2029, underscores the ongoing commitment to maintaining a robust and accessible primary healthcare system in Australia. By addressing both the financial and operational aspects of community pharmacies, the Agreement aims to enhance the overall healthcare experience for millions of Australians.
Guild members can access more information about the agreement, and what it means going forward at 8th Community Pharmacy Agreement.
Blair Comley, Health Minister Mark Butler, Prime Minister Anthony Albanese and Pharmacy Guild National President Professor Trent Twomey after signing the 8th Community Pharmacy Agreement.
