Medicinal cannabis access in Australia has expanded rapidly in recent years - but one very common question patients ask is: why isn’t it subsidised under the Pharmaceutical Benefits Scheme (PBS)?
Understanding how the Pharmaceutical Benefits Scheme works, and why most cannabis products aren’t included, can help you better navigate costs, access, and expectations as a patient.
What is the PBS?
The Pharmaceutical Benefits Scheme (PBS) is an Australian Government program that subsidises the cost of approved prescription medications, making them more affordable for patients.
For a medicine to be listed on the PBS, it must go through a strict evaluation process overseen by the Pharmaceutical Benefits Advisory Committee (PBAC), which assesses:
- Clinical effectiveness
- Safety
- Cost-effectiveness compared to existing treatments
Only medicines that meet these criteria are approved for subsidy.
Why isn’t Medicinal Cannabis on the PBS?
There isn’t just one reason - several key factors contribute:
1. Limited High Quality Clinical Evidence
While patient demand and real-world use are growing, many medicinal cannabis products still lack the large-scale, randomised clinical trials typically required by the Pharmaceutical Benefits Advisory Committee.
This makes it difficult to demonstrate consistent efficacy across broad patient populations. These studies also require a large amount of funding to undertake.
2. Product Variability
Unlike traditional pharmaceuticals, medicinal cannabis products can vary significantly in:
- THC and CBD content
- Terpene profiles
- Delivery formats (oils, flower, capsules, etc.)
This variability creates challenges for standardised evaluation and PBS listing.
3. Cost-Effectiveness Requirements
To be listed on the PBS, a medicine must not only work - it must be cost-effective compared to existing treatments.
Many cannabis products are currently more expensive than standard therapies, making it harder to meet PBS thresholds.
4. Regulatory Pathways
Most medicinal cannabis in Australia is accessed through special pathways such as the Therapeutic Goods Administration (TGA):
- Special Access Scheme (SAS)
- Authorised Prescriber Scheme
These pathways allow access to unapproved therapeutic goods, which are generally not eligible for PBS subsidy.
Are Any Cannabis-Based Medicines on the PBS?
A small number of cannabis-derived pharmaceuticals have been approved for specific conditions, but these are:
- Highly standardised
- Backed by strong clinical evidence
- Approved as registered medicines (not just via special access)
Most products patients receive through pharmacies today do not fall into this category.
What This Means for Patients
💸 You’ll Likely Pay Out of Pocket
Without PBS subsidy, patients are responsible for the full cost of their medication.
📈 Prices Can Vary
Costs differ depending on product type, dosage, and supplier - so it’s important to work with your prescriber and pharmacy to find suitable options.
🔄 Access Is Still Expanding
Although not on the PBS, access has improved significantly through the Therapeutic Goods Administration pathways, with more products and prescribing doctors available than ever before.
🤝 Pharmacist Support Matters
Pharmacies play a key role in:
- Explaining product differences
- Helping manage costs where possible
- Ensuring safe and consistent supply
Will Medicinal Cannabis Be Added to the PBS in the Future?
It’s possible, but several changes would be needed:
- More large-scale clinical trials
- Greater product standardisation
- Strong cost-effectiveness data
As research grows and the industry matures, some products may eventually meet the criteria required by the Pharmaceutical Benefits Advisory Committee.
Medicinal cannabis isn’t currently on the PBS because it doesn’t yet meet the strict evidence, consistency, and cost-effectiveness standards required for subsidy.
However, access is continuing to improve, and with ongoing research, the landscape may change in the years ahead.
Have any questions? Your prescriber, or the team at Dispense Direct, are the best places to start. Send us an email at hello@dispensedirect.com.au.