PBS savings 'go to medical research fund'

The federal government will direct savings from the pharmaceutical benefits scheme into its $20 billion medical research future fund.

The government will recommit to the multibillion dollar fund in this year's budget despite ditching the $7 Medicare co-payment that would have injected most of the cash, the West Australian reports.

Prime Minister Tony Abbott is confident there will be reasonable savings found in the pharmaceutical supply chain to invest in the fund.