National Health Amendment Act 1985 (Cth)

National Health Amendment Act 1985

No. 53 of 1985

An Act to amend the National Health Act 1953, and for related purposes

[Assented to 4 June 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the National Health Amendment Act 1985.

(2) The National Health Act 19531is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on 1 July 1985.

3. After section 85a of the Principal Act the following section is inserted:

Determination of special patient contribution in respect of certain drugs, &c.

“85b. Where—

(a) either of the following sub-paragraphs apply in relation to a pharmaceutical benefit:

(i) in a case where the pharmaceutical benefit is a form of a drug or medicinal preparation to which a substance has, or substances have, been added in accordance with a

 

determination in force under sub-section 85 (3) relating to the drug or medicinal preparation—the Minister and the manufacturer of the form of the drug or medicinal preparation have been unable to agree on an amount that is, for the time being, to be taken to be, for the purposes of this Part, the appropriate maximum price for sales of the form of the drug or medicinal preparation to approved pharmaceutical chemists;

(ii) in any other case—the Minister and the manufacturer of the pharmaceutical benefit have been unable to agree on an amount that is, for the time being, to be taken to be, for the purposes of this Part, the appropriate maximum price for sales of the pharmaceutical benefit to approved pharmaceutical chemists; and

(b) the pharmaceutical benefit is a drug or medicinal preparation in respect of which a determination under sub-section 85 (6) is in force,

the Minister may, by notice in writing published in the Gazette, determine that this section applies in relation to the pharmaceutical benefit and, if the Minister does so, the Minister shall also, by notice in writing published in the Gazette, determine—

(c) the amount that is, for the purposes of this Part, to be taken to be the special patient contribution in relation to the pharmaceutical benefit; and

(d) the amount that is, for the purposes of this Part, to be taken to be—

(i) in a case to which sub-paragraph (a) (i) applies—the manufacturer’s price for sales of the form of the drug or medicinal preparation to approved pharmaceutical chemists; or

(ii) in a case to which sub-paragraph (a) (ii) applies—the manufacturer’s price for sales of the pharmaceutical benefit to approved pharmaceutical chemists.”.

Limited charges for pharmaceutical benefits

4. Section 87 of the Principal Act is amended—

(a) by omitting from sub-section (2) “his approval may, in respect of each supply by him of a pharmaceutical benefit (including each repeated supply)” and substituting “his or her approval may, in respect of each supply (including each repeated supply) by the approved pharmaceutical chemist or approved medical practitioner, as the case may be, of a pharmaceutical benefit (other than a pharmaceutical benefit in respect of which there is in force a determination under section 85b)”;

(b) by omitting from paragraph (2) (b) “$4.00” and substituting “$5.00”;

(c) by inserting after sub-section (2) the following sub-section:

“(2a) An approved pharmaceutical chemist or an approved medical practitioner acting in accordance with his or her approval may, in respect of each supply (including each repeated supply) by the

 

approved pharmaceutical chemist or approved medical practitioner, as the case may be, of a pharmaceutical benefit in respect of which there is in force a determination under section 85b—

(a) upon a pensioner benefit prescription—charge the person to whom the pharmaceutical benefit is supplied the amount (in paragraphs (b) and (c) referred to as the ‘special patient contribution’) determined, for the time being, under that section to be the amount that is, for the purposes of this Part, to be taken to be the special patient contribution in relation to the pharmaceutical benefit;

(b) upon a concessional benefit prescription—charge the person to whom the pharmaceutical benefit is supplied the sum of the special patient contribution and $2.00; or

(c) upon a general benefit prescription—charge the person to whom the pharmaceutical benefit is supplied the sum of the special patient contribution and $5.00.”;

(d) by inserting in sub-section (3) “or (2a), as the case requires,” after “sub-section (2)” (first occurring);

(e) by inserting in sub-section (3) “or (2a), as the case may be,” after “sub-section (2)” (last occurring); and

(f) by inserting in sub-section (5) “or (2a), as the case requires,” after “sub-section (2)” (first occurring).

Cancellation by Secretary of approval of pharmaceutical chemists, &c.

5. Section 98 of the Principal Act is amended by omitting from sub-section (2) “, medical practitioner or hospital authority” and substituting “or medical practitioner”.

Function of Tribunal

6. (1) Section 98b of the Principal Act is amended—

(a) by omitting from paragraph (2) (a) “agreed price” (wherever occurring) and substituting “approved price”;

(b) by omitting from sub-section (3) the definition of “agreed price to pharmaceutical chemists” and substituting the following definition:

“ ‘approved price to pharmaceutical chemists’ means—

(a) in relation to a pharmaceutical benefit that is not a special pharmaceutical benefit or a form of a drug or medicinal preparation referred to in sub-paragraph (2) (a) (ii)—the amount that the manufacturer of the pharmaceutical benefit and the Minister agree, from time to time, is to be taken to be, for the purposes of this Part, the appropriate maximum price for sales of the pharmaceutical benefit to approved pharmaceutical chemists;

(b) in relation to a pharmaceutical benefit that is a special pharmaceutical benefit, but is not a form of a drug or

 

medicinal preparation referred to in sub-paragraph (2) (a) (ii)—the amount determined, from time to time, under section 85bto be the amount that is, for the purposes of this Part, to be taken to be the manufacturer’s price for sales of the pharmaceutical benefit to approved pharmaceutical chemists;

(c) in relation to a pharmaceutical benefit that is a form of a drug or medicinal preparation referred to in sub-paragraph (2) (a) (ii), but is not a special pharmaceutical benefit—the amount that the manufacturer of the form of the drug or medicinal preparation and the Minister agree, from time to time, is to be taken to be, for the purposes of this Part, the appropriate maximum price for sales of the form of the drug or medicinal preparation to approved pharmaceutical chemists; or

(d) in relation to a pharmaceutical benefit that is a form of a drug or medicinal preparation referred to in sub-paragraph (2) (a) (ii) and also a special pharmaceutical benefit—the amount determined, from time to time, under section 85b to be the amount that is, for the purposes of this Part, to be taken to be the manufacturer’s price for sales of the form of the drug or medicinal preparation to approved pharmaceutical chemists;”; and

(c) by adding at the end of sub-section (3) the following definition:

“ ‘special pharmaceutical benefit’ means a pharmaceutical benefit in respect of which there is in force a determination under section 85b.”.

(2) Where the manufacturer of a pharmaceutical benefit, or a form of a drug or medicinal preparation that is a pharmaceutical benefit, and the Minister have, before the commencement of this section, agreed that an amount is to be taken to be, for the purposes of Part VII of the Principal Act, the appropriate maximum price for sales of the pharmaceutical benefit or the form of the drug or medicinal preparation, as the case may be, to approved pharmaceutical chemists and the agreement is in force immediately before that commencement, the agreement has effect, after that commencement, as if it were an agreement made for the purposes of Part VII of the Principal Act as amended by this Act.

(3) A reference in a determination of the Tribunal in force immediately before the commencement of this section to the agreed price to pharmaceutical chemists of a pharmaceutical benefit shall, after that commencement, be taken to be a reference to the approved price to pharmaceutical chemists of the pharmaceutical benefit.

 

Payment for supply of benefits

7. Section 99 of the Principal Act is amended—

(a) by inserting in sub-sections (2) and (2a) “(other than a pharmaceutical benefit in respect of which there was in force, at the time of supply, a determination under section 85b)” after “a pharmaceutical benefit”;

(b) by omitting from sub-section (2a) “$4.00” (wherever occurring) and substituting “$5.00”;

(c) by inserting in sub-section (2b) “(other than a pharmaceutical benefit in respect of which there was in force, at the time of supply, a determination under section 85b)” after “a pharmaceutical benefit”; and

(d) by inserting after sub-section (2b) the following sub-section:

“(2c) An approved pharmaceutical chemist or approved medical practitioner who has supplied a pharmaceutical benefit in respect of which there was in force, at the time of supply, a determination under section 85b is, subject to the conditions determined under section 98c and applicable at the time of the supply, entitled to be paid by the Commonwealth the amount by which the Commonwealth price of the pharmaceutical benefit, as at the time of the supply, exceeded the amount that the pharmaceutical chemist or approved medical practitioner was entitled to charge under sub-section 87 (2a) or (3), as the case requires.”.

NOTE

1. No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; and Nos. 46, 63, 72, 120, 135 and 165, 1984.

 

[Minister’s second reading speech made in—

House of Representatives on 14 May 1985

Senate on 22 May 1985