EXPLANATORY STATEMENT
INSTRUMENT NUMBER PB 38 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 May 2009, was made on 2 April 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 paragraph 98C(1)(b) which appear in this Determination.
ATTACHMENT
Paragraph 1: provides that this instrument commences on 1 May 2009.
Paragraph 2: provides that Schedule 1 amends PB 119 of 2008.
Schedule 1: provides for the following amendments:
SCHEDULE 3
Addition of Forms
Hydromorphone Tablet (modified release) containing hydromorphone hydrochloride 8 mg
Tablet (modified release) containing hydromorphone hydrochloride 16 mg
Tablet (modified release) containing hydromorphone hydrochloride 32 mg
Tablet (modified release) containing hydromorphone hydrochloride 64 mg
Overview
The National Health Act 1953, as amended by the National Health Amendment Determination under paragraph 98C(1)(b) in 2009, addresses the need for timely and affordable access to a broad range of medicines for all Australians. This legislation is instrumental in establishing the Pharmaceutical Benefits Scheme (PBS), which ensures that Australians can access essential medications at a reasonable cost. The amendments introduced by the 2009 Determination focus on updating the conditions under which payments will be made by the Commonwealth for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. This was achieved by modifying the existing legislative instrument to include new forms of medications, such as modified release tablets of hydromorphone, thereby expanding the range of pharmaceutical benefits available under the PBS. The determination was made by the Minister for Health, following consultations with the Pharmaceutical Benefits Advisory Committee, and came into effect on 1 May 2009.
Scope and Application
The National Health Act 1953 Amendment Determination under paragraph 98C(1)(b) applies to the Pharmaceutical Benefits Scheme (PBS), which is administered by the Commonwealth to ensure all Australians have access to reliable, timely, and affordable medicines. This legislation governs the conditions under which payments are made for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. It sets out the specific forms and brands of listed drugs that qualify for benefits, as determined by the Minister, and establishes the responsible person for each pharmaceutical item. The Act applies to a wide range of entities, including individuals, pharmaceutical companies, healthcare providers, and the Commonwealth government. The geographic reach of this Act is national, applying across Australia. There are no exclusions, exemptions, or thresholds specified in the Act itself, though these may be defined in subordinate instruments. The Act allows for its application to be extended or restricted through additional legislative instruments, which detail specific conditions and amendments as necessary.
Key Provisions
The main operative sections of this legislation pertain to the Pharmaceutical Benefits Scheme (PBS) under Part VII of the National Health Act 1953. Specifically, section 85(1) mandates that the Commonwealth provides pharmaceutical benefits to Australians, with the exact nature and scope of these benefits determined by the Minister through legislative instruments. Subsection 85(2) clarifies that drugs and medicinal preparations included in the PBS are declared by the Minister, with subsection 84(1) defining these as listed drugs. Additionally, the Minister has the authority to determine the form, administration manner, and specific brands of these listed drugs through subsections 85(3), 85(5), and 85(6) respectively. The amendments made by this instrument, particularly those outlined in Schedule 1, update the conditions under which payments will be made for the supply of these pharmaceutical benefits by approved pharmacists and medical practitioners, as provided under section 98C(1)(b).
The Act imposes several obligations on the parties involved. The Minister must consult with the Pharmaceutical Benefits Advisory Committee (PBAC), which includes representatives from various relevant sectors, to recommend which medicines should be subsidised through the PBS. This ensures that the decisions made are well-rounded and consider various perspectives. Furthermore, the Minister's determinations regarding the form, administration, and brands of listed drugs must be made in accordance with the legislative provisions outlined above. Approved pharmacists and medical practitioners must adhere to these conditions to be eligible for Commonwealth payments for the supply of pharmaceutical benefits.
There are no specific offences, penalties, or consequences outlined in the provided text for breaches of the Act or its amendments. However, the nature of the legislation implies that non-compliance with the Minister's determinations and the conditions set forth could potentially lead to legal ramifications. These might include civil or administrative penalties for entities or individuals who fail to comply with the stipulated requirements for the supply of pharmaceutical benefits. The exact penalties would depend on the specific circumstances and any additional legislation that may provide further detail on enforcement and compliance mechanisms.