Government decision hits Chemist Warehouse's prescription policy

Having access to quality and affordable medicine is a must for anyone.

A recent government decision may impact many wallets, especially those living on fixed incomes and budgets.


The Albanese government recently removed the $1 discount on prescription medicines at Chemist Warehouse.

The decision sparked concern among Australians already grappling with the rising cost of living.

This move, influenced by the Pharmacy Guild's successful lobbying, could affect the wallets of many, particularly those who rely on regular medications.


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Medicine is vital for many people’s lives—from over-the-counter remedies, vitamins, and prescription medicine. Image Credit: Pexels/Anna Shvets


Since 2016, Chemist Warehouse has been using a policy introduced by former health minister Sussan Ley, allowing them to offer a $1 discount on the government-set prices of prescriptions.

This discount relieved consumers and introduced a level of competition among pharmacies.

However, with the recent government decision, the days of discounted scripts at Chemist Warehouse are numbered.


The Pharmacy Guild argued that ending the $1 discount will benefit Australians struggling with healthcare costs in the long run by keeping costs down and restoring uniformity to prescription prices.

'The freezing of maximum medicine co-payments via the staged application of the discretionary $1 discount will help Australians struggling with the cost of healthcare and will restore universality to the PBS,' Pharmacy Guild President Trent Twomey said.

'Freezing indexation of co-payment means patients won't have to foot more of the overall cost for their medicines come 1 January each year,' he added.

'On behalf of our members, the Guild has a strong track record of fighting to bring down the cost of medicines—I'm pleased the Guild secured anti-inflationary relief for patients by phasing in the universal application of the $1 discount as part of our 8CPA negotiations.'


While the Pharmacy Guild framed this change as a win for consumers, many still wonder about its effect on their budgets.

The seemingly small $1 discount can add up over time, particularly for seniors who often have multiple prescriptions.

As of writing, Chemist Warehouse has not issued a statement regarding the government's decision.

It's essential to understand the implications of this policy change.

With the rising cost of living, every dollar saved is crucial, and the removal of the $1 discount could be a hard pill to swallow for many.
Key Takeaways

  • Chemist Warehouse can no longer offer $1 discounts on prescription medicine following the Albanese government's decision.
  • The decision came after the Pharmacy Guild's successful lobby to end the discount policy introduced in 2016.
  • The Guild claimed the end of the $1 discount policy will help reduce costs in the long run and restore uniform prescription prices across Australia.
  • The Pharmacy Guild welcomed the government's decision and suggested it will relieve Australians dealing with high healthcare costs amid inflation.
Have you relied on Chemist Warehouse's discounts in the past? Will this new policy affect your monthly expenses? We encourage you to share your thoughts and opinions in the comments below.
 
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I would use $2.00 for petrol to go to my nearest Chemist Warehouse. My pharmacy knows me & my needs.
They know you? So they just give you meds without a prescription? I'd say they give you your meds because you have a prescription, just like ANY chemist will.
 
It's only a $1and this will enable all the smaller, independent pharmacies to compete. The convenience of having a local pharmacy on our doorstep instead of having to travel to a Chemist Warehouse for just a scrip is far more important than saving a $1.
You're right, it is only $1, so all the independent pharmacies could charge $1 less.
 
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My scripts are always cheaper at my local Chemist Warehouse even if they put this extra $1 on the prices and have 6 of them about every month. Oh well, another thing that'll be a bit dearer😕

In fact I didn't even know there was a $1 discount in the first place and have no idea what amount I have on this safety net.
 
As we get older we rely on medications a little saving is a little for those that have to watch every penny/ cent. Just goes to show this government really doesn’t seem to care.
 
I've found chemists set their own prices, what I've paid at chemist warehouse, is never the same price at other chemists who all differ from each other by a few dollars
 
There is a lot going on in the medical world. My GP wanted me to have a blood test and gave me a referral 10 days ago. I went for the test last Thursday and registered in with the clinic that I had been going to for a number of years. My tests were always free as I am a diabetic pensioner. I sat down with my sleeve rolled up and was promptly told that last Monday the PSG (I think that is right) was now costing $60.00. WTF? I decided that part of the test would not be needed. I will speak to my GP but I would have thought that if a referral was made at a particular time, the costs would remain the same. Maybe I am living in fantasy land.
 
Whatever fool thinks putting prices of perceptions up is going to save us money is living in la la land. They should go back to school and actually learn about money. Someone please explain how charging us more will help us save money.
 
My scripts are always cheaper at my local Chemist Warehouse even if they put this extra $1 on the prices and have 6 of them about every month. Oh well, another thing that'll be a bit dearer😕

In fact I didn't even know there was a $1 discount in the first place and have no idea what amount I have on this safety net.
The safety net may save you a few dollars each year. We get to the limit around the middle of the year so get about 6 months of free scripts. If you're married it's a joint total that counts.
 
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My belief is that the THRESHOLD is linked to the total amount of $'s spent on Prescriptions. This being the case & a person paying $1 more for a Script, WOULDN'T THEY REACH THE THRESHOLD QUICKER?
Yes, so? Maybe they don't reach the threshold at all, or only get there in November or December, or whatever.
 
Yes, so? Maybe they don't reach the threshold at all, or only get there in November or December, or whatever.
Not reaching the Threshold to me would be an indication to me of someone living on their perhaps or somebody who doesn't get many scripts or a reasonably healthy person. There are of course people who do not get a script filled all the time. This would delay them reaching that 'magic mark' sooner or at all.

How would you explain the statement you have made? Would any of my possibilities be correct do you think?
 
What was stopping the other
Chemists from doing the same.
This wasn't offered exclusively to Chemist Warehouse, it was supposed to help keep the prices down, other Chemist just didn't do it.
Chemist Warehouse didn't have an advantage.
I have always had good service from Chemist Warehouse,they have always had our meds available.
Thanks Pharmacy Guild NOT, you just added $20/month to our families cost of living.
Apologies I was unaware of this but the article makes no mention of that
 
Yes. Taken over by (or merged with) Sigma. Aim? To control the market. Just like the banks etc. And look where that's getting us. Once they've knocked put the competition there will be no more "cheapies".

And my answer to those who pay more than $1 per scrip or believe the small pharmacies can reduce by $1 it's like David and Goliath. How can a small local shop compete with Chemist Warehouse/Sigma? It's like saying your corner gricer could sell at the same price as Coles ir Woolies if they want.
There were many other small pharmacies that also offered this discount, not just Chemist Warehouse, so it obviously didn't hurt their back pocket too much.
I live in a very small country town and our pharmacy offered this discount,so your David and Goliath scenario doesn't really hold water.
It was only on scripts, not everything in the store. I'm sure they managed to pick up this $1 across all the other items in the store.
 
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Apologies I was unaware of this but the article makes no mention of that
Must admit the item is a bit unclear, but I think most people were already aware, many other chemists also offered it but the way the item was written it made it sound as though it was an exclusive perk for Chemist Warehouse.🙄
 
Big business sadly runs this and all previous Governments in Australia since the 60s . I know I was not good at Maths; but how can making a Script a $1 dearer reduce my cost of living? The big pharmacy companies and member chemist cannot stand competition or like coles, mining companies, gas companies and electricity providers any thing that reduces their profits and ability to pay shared holders bigger payouts is not acceptable
 
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Why should chemist warehouse get an advantage over the other chemist shops, they all have rent to pay and contribute to the local economy
More to the point - why did not the other pharmacists offer this discount - but rather kept it!?
There is a reason Chemist Wharehouse is everywhere.
 
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It's only a $1and this will enable all the smaller, independent pharmacies to compete. The convenience of having a local pharmacy on our doorstep instead of having to travel to a Chemist Warehouse for just a scrip is far more important than saving a $1.
Fair enough if that is your choice, but some of us think $1 in my pocket is better than $1 in their pocket
 

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