Cutting the price of prescription drugs by nearly 30% resulted in zero increase in the number of people filling their prescriptions.
Using Australia's recent copayment reduction as a natural experiment, researchers found that the 29% price drop failed to move the needle on prescription volumes or help disadvantaged communities. This challenges the fundamental economic assumption that price is the primary barrier to medication access.
<p>Did Australia's 2023 PBS Copayment Reduction Increase Prescription Volumes or Reduce Geographic Inequity? A Natural Experiment Using Methodological Triangulation</p>
SSRN · 6397558
Background: In January 2023, Australia reduced the Pharmaceutical Benefits Scheme (PBS) general patient copayment from $42.50 to $30.00, the first real reduction in over a decade. No published evaluation has assessed whether this 29% price reduction increased prescription volumes or improved equity of access across socioeconomically disadvantaged and geographically remote communities. Methods: We analysed 284 months (May 2002-December 2025) of national PBS dispensing data across 86 therapeutic c