Our Methodology

1. Data Source

All medication data is sourced from the PBS API v3, the official application programming interface published by the Australian Government Department of Health and Aged Care. The API provides the complete PBS Schedule including item listings, dispensing rules, substitution groups, co-payment parameters, and 60-day dispensing eligibility flags.

Data is refreshed monthly, synchronised with the PBS Schedule publication cycle (typically the 1st of each month). Each update pulls the latest schedule, including new listings, delistings, price changes, and policy updates such as 60-day dispensing extensions.

The current database covers 14,600+ PBS items across all therapeutic classes, with 37,900+ dispensing rules providing brand premium and pricing data for each item.

2. Co-payment Calculation

The PBS sets uniform national co-payments for subsidised medications. As of 1 January 2026:

Brand premiums are additional charges applied when a patient requests a specific brand instead of the PBS-listed price brand. Brand premiums are set by the PBS dispensing rules (not by pharmacies) and are sourced from the s90-cp dispensing rule. Critically, brand premiums do not count toward the Safety Net threshold.

Therapeutic group premiums may also apply for some medications where the PBS groups therapeutically similar drugs together. These premiums are similarly excluded from Safety Net accumulation.

3. Generic Substitution

Generic substitution analysis uses PBS substitution groups. The PBS assigns medications containing the same active ingredient, strength, and form to a substitution group, indicating they are bioequivalent and interchangeable at the pharmacy level.

For each substitution group, we compare the brand premium of every listed brand. Brands with $0.00 brand premium are highlighted as the most cost-effective options — the patient pays only the standard PBS co-payment with no additional charge.

The potential saving per script is calculated as: current brand premium minus lowest available brand premium in the same substitution group. For patients filling monthly prescriptions, annual savings are multiplied by 12 (or 6 for 60-day scripts).

Substitution requires consultation with a pharmacist and, in cases where the prescriber has marked “brand substitution not permitted,” requires a new prescription from the doctor.

4. 60-Day Prescription Analysis

Since September 2023, eligible PBS medications can be dispensed as a 60-day supply for a single co-payment, effectively halving the number of scripts (and co-payments) per year for those medications.

Eligibility is determined by the PBS policy_applied_imdq60_flag field in the items data. Currently, 800+ PBS items are flagged as 60-day eligible. The list is periodically expanded by the Government.

The annual saving calculation for general patients: 6 × $25.00 = $150.00 per drug per year (12 monthly scripts become 6 bimonthly scripts). For concessional patients: 6 × $7.70 = $46.20 per drug per year. Availability depends on the prescribing doctor’s clinical judgment that the patient’s condition is stable.

5. Safety Net Calculation

The PBS Safety Net tracks cumulative co-payment spending within a calendar year (1 January to 31 December). Once total eligible co-payments reach the threshold, subsequent prescriptions cost less (general patients) or nothing (concessional patients).

Key rule: Only the standard co-payment amount counts toward the threshold. Brand premiums, therapeutic group premiums, and special patient contributions are excluded. This is a common source of confusion — paying more per script due to brand preference does not help reach the Safety Net faster.

The calculator models: scripts required to reach the threshold, the month the threshold is reached (assuming even distribution), total annual cost with and without the Safety Net benefit, and the net saving.

Family members who are part of the same Medicare family (registered at Services Australia) can pool their co-payments toward a single Safety Net threshold. The Family Optimiser takes this into account when modelling multi-member households.

6. Family Optimisation Algorithm

The Family Medication Optimiser combines all three savings mechanisms — generic substitution, 60-day dispensing, and Safety Net threshold analysis — across all family members simultaneously.

For each medication, the algorithm: (1) checks if a lower brand premium alternative exists in the substitution group, (2) checks 60-day dispensing eligibility, and (3) projects annual co-payment accumulation toward the Safety Net threshold. The baseline cost assumes current medications at their current brand premiums with 30-day dispensing. The optimised cost assumes switching to the lowest-premium generic and using 60-day scripts where eligible.

The total potential saving is the difference between baseline and optimised annual costs. Each individual optimisation action is itemised with its contribution to the total saving.

7. Limitations & Known Constraints

No pharmacy prices. medicine·saver does not display, compare, or reference pharmacy-specific retail prices. All cost figures are PBS co-payments and premiums as set by the Government. Drugs priced below the PBS co-payment threshold may be cheaper at some pharmacies — this is outside the scope of this tool.

Not medical advice. This tool provides financial and administrative information about PBS co-payments. It does not assess clinical suitability, side effects, drug interactions, or therapeutic outcomes. Users must consult their doctor or pharmacist before making any changes to their medication regimen.

60-day availability. The PBS flags which medications are eligible, but actual 60-day dispensing depends on the prescriber’s clinical judgment. Not all eligible medications will be prescribed as 60-day quantities for all patients.

Safety Net tracking. There is no public API for PBS Safety Net balances. Calculations are based on user-reported medication lists and frequencies, not actual dispensing records. Mid-year users must estimate their year-to-date spend.

Update frequency. PBS data is refreshed monthly. Between updates, new listings or price changes may not be reflected. The current schedule effective date is displayed on the health check endpoint.

Excluded items. Section 100 medications (e.g., Highly Specialised Drugs, Efficient Funding of Chemotherapy), DVA-specific items, compound medications, and over-the-counter products are not fully modelled. Under-co-payment drugs (retail price below $25.00) may have different cost dynamics not captured by this tool.

8. What medicine·saver Is Not

medicine·saver is an information and calculation tool. It does not provide medical, pharmaceutical, or therapeutic advice. It does not hold a pharmacy licence, does not dispense medications, and is not affiliated with any pharmaceutical company, pharmacy chain, or health fund.

All calculations are mathematical outputs based on official PBS Schedule data. Results show potential cost options — they are not prescriptions, recommendations, or endorsements of any medication or brand. You should always consult your doctor or pharmacist before making any changes to your medications.