Following the passing of legislation through Parliament in late June, the 8th Community Pharmacy Agreement (8CPA), an agreement between the Minister for Health and Aged Care and the Pharmacy Guild of Australia, came into effect on 1 July 2024. Following months of gruelling negotiations, the agreement made history by being the first ever community pharmacy agreement to commence early.
The historic legislative payment mechanism accompanying the legislation, which is outside Commonwealth Price, is unique. It paves the way for sustainably expanding pharmacy services and protects pharmacists, their staff and ultimately patient access to community pharmacies. It does this by introducing an additional $4.88 billion in total funding compared with 7CPA plus structural reform for new legislated payments.
For patients, 8CPA means cheaper medicines, with the freezing of co-payments for up to five years. A saving of $1 on PBS medicines will also be phased in for all Australians by 1 January 2029, funded by the Commonwealth Government.
The agreement also sets up a credible, funded path to Full Scope of Practice, providing increased Dose Administration Aid caps, quality accreditation embedded in community pharmacy programs and a commitment to new and expanded programs and the Doctor of Pharmacy degree.
Pharmacies will receive additional support by way of the Administration, Handling and Infrastructure (AHI) fee for 60-day prescriptions, called the Additional Community Supply Support Payment. Payable on subsidised 60-day scripts dispensed from 1 April 2024, payments will begin to flow from October 2024 and will be paid in instalments until automated payments kick in from 1 July 2025.
For regional pharmacies eligible to participate in the Regional Pharmacy Maintenance Allowance (RPMA) program, those in MMM3-7 locations will receive increased funding in the 2024/25 financial year.
(L-R) Anthony Tassone Vice President - PGA, Gerard Benedet Executive Director – PGA, Prime Minister Anthony Albanese, Prof Trent Twomey National President – PGA, Penny Shakespeare Deputy Secretary for Health Resourcing, Hon Mark Butler MP Minister for Health and Aged Care and Blair Comley PSM Secretary - Department of Health and Aged Care.
To support pharmacies in understanding these changes, the Pharmacy Guild of Australia, in collaboration with NostraData, has launched a new calculator tool.
This tool helps pharmacies assess the impact of the 8CPA on their dispensary remuneration and provides essential insights for managing the evolving remuneration landscape.
The new calculator equips pharmacies with important data reflecting outcomes for their individual pharmacy under the 8CPA, following the success of a similar calculator for 60-day dispensing remuneration. This initiative underscores the Guild’s commitment to providing effective business support solutions for pharmacies.
An upcoming tool for professional services income will be made available following the release last week of the Regional Pharmacy Maintenance Allowance matrix.
