What is a Price premium?

A price premium or brand premium, may apply to some medicines and is an additional payment that you pay to the supplier of the specified brand of a PBS medicine. The additional charge does not mean there is any difference in quality between brands.

Importantly all brands have been evaluated by the Therapeutic Goods Administration (TGA) as equivalent.  In a very small number of cases a prescriber may direct you to a specific brand for reasons specific to you. Where there are two or more brands of the same drug on the Schedule, the Government subsidises each brand to the same amount - up to the cost of the lowest priced brand minus your co-payment. If you are taking a more expensive brand the price difference is paid by you at the request of the drug company and is paid to the supplier NOT to the Government. This cost is in addition to your co-payment.

At your request, the pharmacist may be able to substitute a less expensive brand where your prescriber has allowed this. If you have any concerns, you should talk to your prescriber or pharmacist. Pharmacists are legally required to charge brand premiums on behalf of the drug company concerned. The brand premium does not count towards your Safety Net threshold.


Last updated
7 May 2024