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The cost of living crisis in Australia is having a profound impact on many aspects of life, and healthcare is no exception. As the price of everything from groceries to fuel continues to rise, Australians are increasingly struggling to afford everyday essentials, including medical care.

For some, that looks like not filling prescription medicine, or not even going to see a medical professional in the first place.

According to data from the ABS, almost 10% of young Australian women either delayed or didn’t fill a script for prescription medication due to cost. A new article delves more into these survey results, and shows that women, younger individuals, and those in poorer health are particularly affected by cost-related non-adherence to medications?

Women are more likely to face cost barriers, with 9.4% of women reporting cost-related non-adherence to medications compared to 5.5% of men. Younger Australians are disproportionately affected, with 15-24-year-olds and 25-34-year-olds significantly more likely to experience cost barriers than older Australians. And those in poorer health are at greater risk compared to those in good health.

The concerning thing is the reality for many is likely worse than the data is showing. The ABS survey only collects data on medications prescribed by general practitioners, not specialists. This means that the actual rate of people struggling to afford medications is likely higher than reported, as many patients who miss GP or specialist appointments due to cost may not receive prescriptions in the first place.

Another concerning trend? The growing number of people who are turning to their superannuation savings to pay for medical expenses. People can apply for an early access of super on compassionate grounds if they meet a series of conditions, and have no other means to pay for the expenses. According to recent data, there has been a significant increase in applications for early access to superannuation funds for health costs, with the total amount released reaching $730 million in 2022-23. This represents an 88% increase compared to 2018-19. This suggests that many Australians are facing difficult choices between accessing necessary healthcare and securing a comfortable retirement.

While the government has taken steps to address this issue, concerns remain about the potential for conflicts of interest and the long-term consequences of using superannuation for healthcare expenses. Some argue that early access to superannuation can jeopardise retirement savings, while others emphasise the need for greater flexibility in accessing funds during times of financial hardship.

But it highlights the broader issue of affordability in the Australian healthcare system. The rising cost of healthcare is a complex issue with no easy solutions. As the cost of living continues to rise, we need to find sustainable solutions that ensure all Australians have access to the medical care they need without sacrificing their financial security.

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