National Health Act 1953 - Amendment determination under paragraph 98C(1)(b) - conditions (No. PB 39 of 2010)

Administered by Department of Health, Disability and Ageing

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 39 OF 2010

NATIONAL HEALTH ACT 1953

AMENDMENT DETERMINATION UNDER PARAGRAPH 98C(1)(b)

 

Summary

This legislative instrument in giving effect to recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) 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 amendment provides for a change to 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 amendment is set out in the item of Schedule 1 to the instrument.

 

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.

A provision-by-provision description of the instrument is contained in the Attachment.

This instrument, expressed to commence on 1 May 2010, was made on 1 April 2010.

 


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 May 2010.

Paragraph 2: provides that Schedule 1 amends PB 119 of 2008.

Schedule 1: provides for the following amendments:

 

 

SCHEDULE 4

Addition of Listed Drug

Lacosamide

 

Overview

The National Health Act 1953, amended in 2010, provides the legislative framework for the Pharmaceutical Benefits Scheme (PBS), through which the Commonwealth ensures Australians have access to affordable and timely medicines. This Act establishes the conditions under which the Commonwealth will provide benefits for pharmaceutical items, as well as the procedures for the Minister to determine these benefits. The 2010 amendment, in particular, responds to recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC) to adjust the conditions governing payments for the supply of pharmaceutical benefits by approved pharmacists and medical practitioners. This amendment reflects a policy objective to maintain the effectiveness and efficiency of the PBS by regularly reviewing and updating the criteria and conditions based on expert advice and evolving healthcare needs. The enacting body for this amendment is the Australian Government, through the Minister for Health, who has the authority to determine the conditions under which pharmaceutical benefits are supplied under the Act.

Scope and Application

The National Health Act 1953, as amended by the legislative instrument PB 39 of 2010, applies to the supply of pharmaceutical benefits under the Pharmaceutical Benefits Scheme (PBS). The Act governs the conditions under which the Commonwealth provides payments for the supply of these benefits by approved pharmacists and approved medical practitioners. The Minister for Health has the authority to determine these conditions, as outlined in section 98C(1)(b) of the Act. This legislative instrument specifically amends the determination made by PB 119 of 2008, effective from 1 May 2010, to reflect changes recommended by the Pharmaceutical Benefits Advisory Committee (PBAC). The changes include the addition of a listed drug, Lacosamide, to the schedule of drugs eligible for Commonwealth payments under the PBS. The amendments apply nationally and affect all approved pharmacists and medical practitioners supplying pharmaceutical benefits within Australia. There are no stated exclusions or exemptions in this particular instrument, although the Act itself may have provisions that exclude certain drugs or conditions from eligibility. The application of the Act is further extended or restricted through subordinate instruments, such as determinations and legislative instruments, which detail specific conditions and drugs.

Key Provisions

The main operative sections of this legislative instrument (paragraphs 1 and 2) detail the commencement date of the amendment and the amendment to the previous legislative instrument, PB 119 of 2008, which was made effective on 1 December 2008. Schedule 1, which forms part of this instrument, further specifies the changes to the conditions under which payments will be made for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. This amendment follows recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC) and is set to take effect from 1 May 2010, as indicated in paragraph 1. The obligations imposed by this Act on the parties involved include the requirement for the Minister to determine the conditions under which payments will be made by the Commonwealth for pharmaceutical benefits supplied by approved pharmacists and approved medical practitioners. These conditions are crucial for ensuring that the Pharmaceutical Benefits Scheme (PBS) operates effectively and efficiently. The Minister's role is pivotal in setting these conditions to align with the scheme's objectives of providing reliable, timely, and affordable access to medicines for all Australians. The determinations also encompass the forms of listed drugs, the manner of administration, and the brands of pharmaceutical items that qualify for benefits under the PBS, ensuring clarity and consistency in the administration of the scheme. In terms of offences, penalties, or consequences for breach, the Act does not explicitly detail specific criminal or civil penalties for non-compliance with the conditions set by the Minister. However, failure to adhere to the stipulated conditions could potentially lead to non-payment of benefits by the Commonwealth, thereby impacting the approved pharmacists and approved medical practitioners who rely on these payments. Additionally, non-compliance with the PBS regulations could lead to administrative actions, including investigations and potential fines or sanctions imposed by relevant health authorities. The exact penalties would depend on the specific nature of the breach and the jurisdiction under which it falls, with the potential for penalties to be determined by administrative or civil courts.

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