EXPLANATORY STATEMENT
INSTRUMENT NUMBER PB 131 OF 2009
NATIONAL HEALTH ACT 1953
AMENDMENT DETERMINATION UNDER PARAGRAPH 98C(1)(b)
Purpose and operation
Part VII of the National Health Act 1953 (the Act) is the legislative basis of the Pharmaceutical Benefits Scheme (PBS) by which the Commonwealth provides reliable, timely, and affordable access to a wide range of medicines for all Australians.
Subsection 85(1) provides that benefits are to be provided by the Commonwealth in accordance with Part VII in respect of pharmaceutical benefits.
Drugs and medicinal preparations to which Part VII applies are (with the exception of some medicinal preparations with additives) declared by the Minister by legislative instrument to be so under subsection 85(2). These are listed drugs as defined in subsection 84(1).
The Minister by legislative instrument can determine the form or forms of a listed drug by reference to strength, type of unit, size of unit or otherwise (subsection 85(3)); the manner of administration of the form of the listed drug so determined (subsection 85(5)); and a brand of the pharmaceutical item (defined in subsection 84(1)) that has the listed drug in that form with that manner of administration (subsection 85(6)). These determinations govern what constitutes the pharmaceutical benefit (defined in subsection 84(1)) under Part VII of the Act. Under section 84AF, the Minister may determine a responsible person for a brand of a pharmaceutical item.
Paragraph 98C(1)(b) of the Act provides that the Minister may, from time to time, determine the conditions subject to which payments will be made by the Commonwealth in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.
The determination under paragraph 98C(1)(b) of the Act sets out the conditions under which payments will be made in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.
This legislative instrument amends the determination under section 98C(1)(b) made by legislative instrument number PB 119 of 2008 which came into effect on 1 December 2008. The amendments are set out in the items of Schedule 1 to the instrument.
A provision-by-provision description of the instrument is contained in the Attachment.
This instrument, expressed to commence on 1 February 2010, was made on 21 December 2009.
Consultations
The Department consulted with the Pharmaceutical Benefits Advisory Committee (PBAC) during the regular process of its meetings to consider applications in order to recommend to the Minister which medicines should be subsidised through the Pharmaceutical Benefits Scheme. The Committee is independent of Government and includes members from the following interests or professions: consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and medical specialists. The Committee has received submissions and representations from interested pharmaceutical companies and has recommended the changes to the Minister who has determined the changes to the conditions under paragraph 98C(1)(b) which appear in this Determination.
ATTACHMENT
Paragraph 1: provides that this instrument commences on 1 February 2010.
Paragraph 2: provides that Schedule 1 amends PB 119 of 2008.
Schedule 1: provides for the following amendments:
SCHEDULE 3
Addition of Form
Hydromorphone | Tablet (modified release) containing hydromorphone hydrochloride 4 mg |
SCHEDULE 4
Deletion of Listed Drug
Silver Sulfadiazine with Chlorhexidine |
Overview
The National Health Act 1953, as amended by the determination under paragraph 98C(1)(b), addresses the need to ensure that Australians have reliable, timely, and affordable access to a wide range of medicines through the Pharmaceutical Benefits Scheme (PBS). Enacted by the Parliament of Australia, this Act allows the Minister for Health to determine the conditions under which payments are made for pharmaceutical benefits supplied by approved pharmacists and medical practitioners. This legislative instrument was introduced to amend the existing conditions, effective from 1 February 2010, by adding new pharmaceutical forms and removing others from the list of PBS-subsidised drugs, reflecting recommendations from the Pharmaceutical Benefits Advisory Committee and ensuring the scheme remains current and effective in meeting the health needs of the population.
Scope and Application
The National Health Act 1953, as amended by legislative instrument PB 131 of 2009, governs the Pharmaceutical Benefits Scheme (PBS), which ensures Australians have access to reliable, timely, and affordable medicines. The Act applies to the Commonwealth, providing benefits for pharmaceutical items declared by the Minister. These items are listed drugs determined by legislative instruments, with the Minister also determining the form and manner of administration of these drugs, as well as responsible persons for pharmaceutical brands. The Act extends its reach by allowing the Minister to set conditions under which payments are made for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. The instrument PB 131 of 2009, which came into effect on 1 February 2010, amends the previous determination under section 98C(1)(b) made by legislative instrument PB 119 of 2008. The changes include the addition of a new form of hydromorphone and the deletion of silver sulfadiazine with chlorhexidine from the list of drugs. These amendments reflect the ongoing process of review and adjustment of the PBS, ensuring it remains effective and relevant to the health needs of the Australian population.
Key Provisions
The main operative sections of the National Health Act 1953 Amendment Determination under paragraph 98C(1)(b) (F2010L00104) concern the amendments made to the Pharmaceutical Benefits Scheme (PBS). Specifically, section 85(1) establishes the legislative basis for the PBS, providing for the Commonwealth to offer reliable, timely, and affordable access to a wide range of medicines for all Australians. Under this section, the Minister is empowered to declare by legislative instrument the drugs and medicinal preparations that will be listed under the PBS, as per subsection 85(2). Additionally, the Minister can determine the form or forms of a listed drug by reference to strength, type of unit, size of unit, or otherwise, as per subsection 85(3). Furthermore, the Minister can specify the manner of administration of the form of the listed drug, as per subsection 85(5), and determine a brand of the pharmaceutical item that has the listed drug in that form with that manner of administration, as per subsection 85(6). These determinations establish what constitutes the pharmaceutical benefit under Part VII of the Act.
The Amendment Determination imposes certain obligations and requirements on the parties and entities it governs. Firstly, the Minister is required to consult with the Pharmaceutical Benefits Advisory Committee (PBAC) during its regular meetings to consider applications and recommend which medicines should be subsidised through the PBS. The PBAC is independent of the government and comprises members from various interests and professions, including consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists, and medical specialists. Based on the recommendations of the PBAC and after receiving submissions and representations from interested pharmaceutical companies, the Minister determines the changes to the conditions under paragraph 98C(1)(b) of the Act.
The Amendment Determination also outlines specific offences, penalties, or civil/criminal consequences for breach. However, the Explanatory Statement does not provide explicit details on the penalties for non-compliance with the provisions of the Amendment Determination. It is essential to refer to the relevant sections of the National Health Act 1953 or seek legal advice to understand the potential consequences of breaching the Act's provisions. Nonetheless, it is crucial for parties and entities governed by the Amendment Determination to adhere to the outlined obligations and requirements to ensure compliance with the Act and avoid any potential legal repercussions.