26 September 2016 - Australians will be able to save hundreds of dollars a year from October 1 as prices are cut for more than 2000 medicines covered by the Pharmaceutical Benefits Scheme.

And people will now be able to go online and calculate their savings, with non-concessional patients and those with multiple chronic conditions set to benefit most from the changes.

The cuts to the price of medicines, one of the largest ever, has been driven by a shift to greater use of generic brands and the savings will multiply for people taking drugs for multiple conditions.

Health Minister Sussan Ley said the reductions were a result of reforms passed last year and would allow the reduced price of cheaper generic brands to be used as more expensive "originator" brands were removed.

"This will deliver savings for both consumers and taxpayers," she said.

"In some cases, even where there is no change to the consumer price, there will be a reduction for taxpayers, who fund the PBS because the government is paying less for those medications."

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