Pharmacies across the country will be paid tens of thousands of dollars more to dispense medicines as part of a $377 million government funding boost to cut the cost of prescribed drugs for patients.
From July 1, payments to community pharmacies will increase by about seven per cent, meaning those in metropolitan areas will get an average of more than $41,000 extra per year.
Pharmacies in regional areas will receive slightly more, with an average of more than $43,000.
The boost is to distribute Pharmaceutical Benefits Scheme medicines and also covers handling, administration and infrastructure.
Pharmacists will also have their stocks assured and those outside big cities will have their location allowance doubled.
The changes also mean even more support for regional, rural and remote pharmacies, with the total annual budget for the Regional Pharmacy Maintenance Allowance being doubled.
A pharmacy dispensing 50,000 scripts per year that is located in a very remote community will see an increase of $32,440 to a total of $69,860.
Some remote pharmacies may be eligible to receive more than $90,000 per year in assistance, with the rate of the RPMA dependent on the volume of scripts dispensed.
Under the sweeping changes, patients with opioid dependency will no longer have to pay uncapped out-of-pocket fees to get their medication.
Instead of paying up to $200 a month in out-of-pocket costs, anyone with a Medicare card will pay the usual PBS co-payment of up to $30, or $7.30 for concession card holders.
Additionally, manufacturers of hundreds of common medicines will be required to hold a minimum of four or six months' worth of stock.
Federal Health Minister Mark Butler on Saturday said the changes would cut costs for millions of Australians.
"This will halve the cost of more than 300 medicines for millions of Australians, including pensioners, who are living with a chronic condition and doing it tough on cost of living," Mr Butler said.
