Health Minister Sussan Ley has confirmed the government will tackle "perverse incentives" in the health system by removing over-the-counter medications - such as Panadol, aspirin and antacids - from the Pharmaceutical Benefits Scheme in the May budget.
The change will mean that pensioners and other concession card holders can not receive pain killers and other products, such as anti-dandruff shampoo and laxatives, for free with a doctor's script once they reach the annual PBS safety net.
After receiving around 60 scripts a year, concession card holders can currently access over-the-counter medications for free even though they are available cheaply and without a prescription at supermarkets.
"I want the PBS to be sustainable to pay for new generation cancer drugs and expensive medications that absolutely need to be given to patients with the close involvement of their pharmacist and their doctor," Ms Ley told ABC radio on Monday. "I don't put Panadol in that category."
In the future, medications will only be included on the PBS if it is deemed they need to be distributed by a chemist.
Ms Ley said the current system had created "perverse incentives" for patients to go to the doctor excessively so they could hit the safety net and access over-the-counter medications for free.
"The thought the government would underwrite these over-the-counter medicines - and paracetamol is just one of them - to the level we are doesn't make sense.
"A responsible fiscal approach across the health portfolio demands that we do this. It's also common sense."
The government is also considering letting chemists discount the $6.10 co-payment charged to patients by up to $1 in a bid to increase competition in the pharmacy sector and bring down the price of medicines. Ms Ley said the changes could be made without creating risks that patients will take excessive amounts of painkillers or take them in dangerous combinations with other medicines.
Fairfax Media reported on Sunday that the Therapeutic Goods Administration is considering making it necessary to visit a doctor to buy product such as Nurofen Plus, Panadeine and other common painkillers because of concerns of harmful side effects, addiction and fatal overuse.
Other medicines affected by the change could include Codral Original Cold and Flu Tablets, Aspalgin Soluble tablets and Mersyndol Tablets, which are marketed for short-term pain such as headaches, toothaches and period pain.
