Seventh Community Pharmacy Agreement

Community Pharmacy Agreements between the Commonwealth and the Pharmacy Guild of Australia have been in place since 1991, with their key purpose being to provide for the timely and equitable supply of PBS medicines across Australia.

7CPA

is a 5-year agreement from

1 July 2020-30 June 2025

$18.3 billionAGREEMENT

compared to the estimated 6CPA outcome

of $16.8 billion

DISPENSING REMUNERATION

  • Dispensing remuneration guarantee introduced for the first time
  • $1.132 billion increase in dispensing remuneration for above co-payment prescriptions
  • The dangerous drug fee to increase by 54% to $4.80
  • The dispense fee, Tier 1 AHI fee and dangerous drug fee will be indexed on 1 July each year, by 0.5% for 2021-22 and 2022-23
  • The Premium-free Dispensing Incentive will be discontinued, with funding reallocated to other dispensing remuneration
  • Average remuneration per PBS prescription will increase in every year of 7CPA
  • Dispensing remuneration to increase by 9% with the dispensing fee to increase to $7.74 from 1 July 2020
  • AHI Tier 3 remuneration for higher cost and specialised medicines increased by 33% to $99.28
  • Indexation will be returned to full CPI in 2023-24 and 2024-25

PROGRAMS

  • $1.2 billion in professional programs ($100 million more than 6CPA actual spend)
  • Increased investment in regional, rural and remote areas through the Rural Pharmacy Maintenance Allowance
  • Pharmacy Trial Programs (PTP) from 6CPA will continue until their conclusion
  • Home Medicine Reviews (HMRs)
  • Residential Medication Management Reviews (RMMRS)
  • Quality use of Medicines (QUM) in residential aged care facilities
  • MedsCheck and Diabetes MedsCheck
  • Dose Administration Aids (DAAs) (inc. doubling of base cap)
  • Staged Supply
  • Rural Pharmacy Aboriginal and Torres Strait Islander Workforce program (12 programs)
  • Aboriginal and Torres Strait Islander programs (QUMAX/S100 support)

INDIGENOUS FUNDING

Increased investment in programs to increase access to PBS medicines for Aboriginal and Torres Strait Islander peoples through the Closing the Gap PBS Co-payment measure and the provision of uncapped access to Dose Administration Aids.

ELECTRONIC PRESCRIPTIONS

Electronic Prescription Fees continue to be paid through approved pharmacists for the first year, after which payments will be made directly to Prescription Exchange Service providers.

WHOLESALERS

  • From 1 January 2021, the wholesaler mark-up will be restructured creating a minimum mark-up of $0.41 per item for Section 85 PBS medicines where the Ex-Manufacturer price is up to and including $5.50.
  • The Community Service Obligation (CSO) will continue with $1.083 billion to support the distribution of PBS medicines and NDSS items.

Resources

Seventh Community Pharmacy Agreement

The Seventh Community Pharmacy Agreement (7CPA) Full Text Signed.

7CPA Calculator

The Guild has produced the 7CPA Calculator tool to help you compare remuneration for the final year of the 6CPA with the first year of the 7CPA.

Seventh Community Pharmacy Agreement Infographic

Community Pharmacy Agreements between the Commonwealth and the Pharmacy Guild of Australia have been in place since 1990, with their key purpose being to provide for the timely and equitable supply of PBS medicines across Australia.

Seventh Community Pharmacy Agreement Fact Sheet

The Seventh Community Pharmacy Agreement (7CPA) supports consumer access to Pharmaceutical Benefits Scheme (PBS) subsidised medicines through community pharmacies across Australia.