Thousands of Australians Face Skyrocketing Costs as Labor Price Cut Force Lifesaving Drug From PBS

In this file photo, insulin injections and other diabetic medical supplies are pictured in Irvine, Calif., on March 24, 2022. (John Fredricks/The Epoch Times)

The federal government is under pressure from the Coalition after removing a key lifesaving drug from the pharmaceutical benefits scheme (PBS), sending its cost soaring for thousands of Australians.

Fifteen thousand Australians, many whom are children, who rely on Novo Nordisk’s fast-acting insulin drug Fiasp to manage their Type 1 diabetes will now face skyrocketing costs to keep their autoimmune disease under control.

This will mean that Type 1 diabetics who utilise Fiasp will be forced to pay hundreds of dollars a month more for the drug after its prices rose 41-fold, from the subsidised $7 (US$4.65) a month to $287. At present, there are 13,000 children and young adults who have Type 1 diabetics in Australia, according to data from the Australian Institute of Health and Welfare.

This photograph taken on February 23, 2023, in Paris, shows the anti-diabetic medication "Ozempic" (semaglutide) made by Danish pharmaceutical company "Novo Nordisk". (Photo by Joel Sage/AFP via Getty Images)

Coalition Senator Gerard Rennick has called the decision “callous” and not at all in keeping with Labor’s policy promise of cheaper medicines.

Rennick has officially written to federal Health Minister Mark Butler in an attempt to get Fiasp reinstated on the PBS. However, Rennick told The Epoch Times that the minister is yet to respond to the call.

Rennick has previously highlighted the case of Freya Goldston in a media release. Golston, who is 14, found her quality of life drastically improved after she was prescribed FIASP six months ago.

“For the past six months, 14-year-old Freya Goldston has attended more school, swimming training, and increased her time with friends—but that quality of life is now at risk ... Fiasp, the ultra-fast insulin she relies on to treat her type 1 diabetes, will be taken off the Pharmaceutical Benefits Scheme next month, sending the price soaring,” Rennick said.

“How callous is this?”

Rennick believes that if the federal government could agree to financially support COVID-19 vaccines, they can also support the 15,000 Australians who are reliant on the drug.

Labor Says Cheaper Medicines Policy Is Helping Keep Costs Low

The comments from the senator come after Health Minister Mark Butler said on March 5 that government’s cheaper medicines policy is helping to make medicines more affordable and accessible, and take the sting out of the rising cost of living.

“The Albanese Government’s cheaper medicines policy is changing lives and improving household budgets. Over 3.2 million prescriptions were cheaper in the first two months of this year and thanks to our policy, patients have saved more than $36 million,” Butler said.

Australian Minister for Health and Aged Care Mark Butler speaks at Parliament House in Canberra, Australia, on July 28, 2022 . (Martin Ollman/Getty Images)

According to the federal health department, if the savings for the first two months of the cheaper medicines policy are repeated across the course of 2023, the total savings flowing back into the pockets of Australians with a Medicare card will amount to $218 million.

This will amount to annual savings of more than the $200 million in annual savings.

“Someone taking one medication a month could save as much as $150 every year, or a family taking two or three medications could save as much as $300-$450 a year,” the health department said.

Novo Nordisk Decision Forced By PBS Price Cut

Novo Nordisk, the company that manufactures Fiasp, told The Epoch Times in an email on Tuesday that the decision to remove Fiasp FlexTouch and Fiasp vial was difficult.

“Novo Nordisk explored all options to keep Fiasp Flextouch and Fiasp vial on the PBS, however, the Government’s decision to implement a significant price cut on Fiasp Flextouch and Fiasp vial—to below the price of NovoRapid—means it is no longer commercially viable in Australia to continue supply on the PBS,” a spokesperson for the company said.

An insulin kit. (Kerem Yucel/AFP via Getty Images)

The company also advised customers to seek out their doctor to discuss an urgent treatment plan for new medication—while there are several possible alternatives to Fiasp, they have a more delayed onset of actions and are not interchangeable with the medication.

Meanwhile Diabetes Australia, the peak advocate for diabetes sufferes in Australia, has said it is continuing to engage with the federal government and Novo Nordisk to see what can be done to reduce the impact on people who rely on this medication.

“We understand this is causing distress for some people living with diabetes who currently use this medication,” they said.

“We have conveyed our concerns to Novo Nordisk and the government, and are continuing these discussions to see what can be done to reduce the impact on people living with diabetes who are using this medication.”