Cutting the price of prescription drugs by nearly 30% resulted in zero increase in the number of people filling their prescriptions.
April 1, 2026
Original Paper
<p>Did Australia's 2023 PBS Copayment Reduction Increase Prescription Volumes or Reduce Geographic Inequity? A Natural Experiment Using Methodological Triangulation</p>
SSRN · 6397558
The Takeaway
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.
From the abstract
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