Peak bodies dismiss Choice findings on S4 drug prices

simone roberts & AAP

Choice claimed some pharmacists were overcharging for medicines priced below the standard $29.50 PBS co-payment.

A recent survey by the watchdog investigated prices of five common prescription medicines in 200 pharmacies across four states.

According to the survey, the antibiotic drug Amoxil (amoxycillin trihydrate/sodium) was the most inflated, with 26 per cent of pharmacies charging above the “permitted price” of $16 for 20 capsules. According to Choice, the “permitted price” is the sum of the PBS price, the safety net recording fee and the allowable extra fee.

Glucophage (metformin hydrochloride), cost more than the “permitted” $19.50 in 11 per cent of stores, Choice said, while asthma medication Ventolin was more than $29.50 in seven per cent of pharmacies.

Choice also complained that the cost of filling a prescription for Panadeine Forte ranged in price from $5.50 to $20.80 across the pharmacies-- a difference of 278 per cent.

“The PBS price already incorporates generous compensation to pharmacies for dispensing the drug and in Choice’s opinion the additional fees are unjustified,” the report states.

“And there’s certainly no excuse for charging extra on top.

“You should be able to pay for PBS drugs without fear of being ripped off.”

The consumer group called for government to crack down on the “rort”, but the Pharmacy Guild of Australia said claims of rip offs were sensationalised and misleading.

“In the past, Choice has levelled criticism at community pharmacy for allegedly not having adequate competition in the sector,” the guild spokesman said.

“Now it appears to be criticising pharmacy because there is variation in pricing (and) competition and discounting are evident.”

The PSA backed the Guild’s stance saying the principles of competition are supported by all governments in Australia, and even Choice itself.

“Despite Choice’s slant on its survey, its own figures show those pharmacies charging what it terms the ‘permitted’ price or less make up the vast majority,” said PSA national president Brian Grogan.

Mr Grogan added that Choice’s single-minded focus on price alone overlooks the tangible benefits provided by community pharmacies.

“Most consumer surveys have found that they certainly place importance on price, but a higher priority is the quality of the service they receive,” he said.

The survey also found significant but unsurprising price discrepancies between brand name drugs and their generic equivalent.

The Guild said the government's recently announced PBS reform package will help address this imbalance.