In brief

The Australian Government and the Pharmacy Guild of Australia recently reached agreement for the Eighth Community Pharmacy Agreement (8CPA), to deliver, amongst other things:

• an additional $3 billion in funding for community pharmacies to ensure equitable, timely, safe and reliable access to medicines and medicines-related services;
• $1.05 billion in funding for pharmacy services and programs;
• a temporary freeze on the indexation of the maximum Pharmaceutical Benefits Scheme (PBS) co-payment;
• enhanced transparency for consumers in relation to costs of PBS medicines; and
• clinical safety and quality in healthcare through accreditation standards for Community Pharmacy Programs.

The 8CPA

There have been seven previous community pharmacy agreements, with the first being signed in 1990. The 8CPA is intended to build on those previous agreements to support a viable, sustainable, efficient and effective community pharmacy sector in Australia, while also recognising the shared goal that community pharmacies transition towards providing a wider range of primary health care services.

The 8CPA includes an additional $3 billion in Commonwealth funding for community pharmacies over its 5-year term. The total funding for community pharmacies in that period will be an estimated $26.5 billion, including:

• $22.5 billion for community pharmacies to dispense prescriptions;
• $2.1 billion for a new Additional Community Supply Support Payment;
• $1.05 billion over five years for other pharmacy services and programs, including Dose Administration Aids, MedsChecks, Staged Supply of medicines, and an increased Regional Pharmacy Maintenance Allowance;
• $484.4 million to cover the costs of a one-year freeze on the maximum Pharmaceutical Benefits Scheme (PBS) co-payment for everyone with a Medicare card and up to a five-year freeze for pensioners and other Commonwealth concession cardholders;
• $196.7 million to increase the number of patients who can receive funded Dose Administration Aid services; and
• $103.3 million for new and improved pharmacy programs.

The Additional Community Supply Support Payment, a new legislated payment, will be adjusted periodically to support predictability of remuneration and the stability of the community pharmacy sector. Importantly, the cost of this payment will not be borne by consumers for medicines priced below the applicable patient co-payment.

Community Pharmacy Programs

The following Community Pharmacy Programs will continue to be funded under the 8CPA:

• Dose Administration Aids Program (with base caps being increased from 60 to 90 per week);
• Indigenous Dose Administration Aids Program;
• MedsCheck Program;
• Diabetes MedsCheck Program;
• Staged Supply Program; and
• Regional Pharmacy Maintenance Allowance Program.

New Community Pharmacy Programs may be funded, or existing programs expanded, with the cost of new and expanded programs forecast to be $300 million.

Freeze on Indexation

The 8CPA provides for the freezing of indexation for PBS co-payments, so that co-payments will ultimately be $1.00 less than they would otherwise have been. This universal co-payment reduction will apply in place of the allowable discount, which will be phased out over the term.

Transparency

The 8CPA includes provisions designed to ensure that:

• consumers are made aware of different fees and charges, especially where such fees may differ between pharmacies;
• total costs of medicines are communicated to consumers when they are in a community pharmacy;
• the implementation and achievements under the 8CPA are publicly communicated and open public scrutiny.

Safety and Accreditation

Providers of Community Pharmacy Programs will be accredited against the relevant Australian Standard, to support clinical safety and quality in primary health care.

Key takeaways

Community pharmacy continues to be an important part of the Australian primary health care system, both in terms of dispensing medicines and in providing a wider range of programs and services.

The 8CPA will support community pharmacies in this central role over the next five years.