National Health Act 1953 - Amendment determination under section 85B - price determinations and special patient contributions (No. PB 65 of 2009)

Administered by Department of Health, Disability and Ageing

Legislation au F2009L02708 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 65 OF 2009

NATIONAL HEALTH ACT 1953

AMENDMENT DETERMINATION UNDER SECTION 85B

 

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.

Subsection 85B(1) provides that the section applies if the Minister and the responsible person for a brand of pharmaceutical item have been unable to make a price agreement under section 85AD on an amount that is to be taken to be the appropriate maximum price for sales of the brand of pharmaceutical item to approved pharmacists.

Under subsection 85B(2), the Minister may by legislative instrument determine, by reference to a quantity or number of units of a pharmaceutical item, the amount that is taken to be the appropriated maximum price for sales of the brand of the pharmaceutical item to pharmacists.

Under subsection 85B(3), the Minister may by legislative instrument determine, by reference to a quantity or number of units, the amount that is taken to be the price claimed by the responsible person as the responsible person’s price for sales of the brand of the pharmaceutical item to approved pharmacists.

Subsection 85B(4) provides the special patient contribution for the brand of the pharmaceutical item is the difference between the “responsible person’s Commonwealth price” and the “Commonwealth price” for the brand of the pharmaceutical item.  Subsection 85(6) defines these terms to the effect that the Special Patient Contribution is the difference between the Commonwealth price (worked out in accordance with the determination of the Pharmaceutical Benefits Remuneration Tribunal under subsection 98B(1)) based on the amount determined under subsection 85B(2) and what would be the Commonwealth price based on the amount determined under subsection 85B(3).

Under subsection 85B(5), the Minister having made a determination under subsection 85B(3) may by legislative instrument determine the circumstances in which the Commonwealth is to pay the special patient contribution for the brand of the pharmaceutical item.

This legislative instrument in giving effect to recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) amends the determination under section 85B made by legislative instrument number PB 118 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 August 2009, was made on 6 July 2009.

 

 

Consultations

This instrument affects certain responsible persons with medicines listed on the PBS.  If the Minister and responsible person cannot enter into a price agreement, consultation occurs between the responsible person and the Commonwealth and thereafter the Minister determines the price in relation to the relevant brand of pharmaceutical item and determines the price claimed by the responsible person as the responsible person's price for sales of the brand of pharmaceutical item to approved pharmacists.

 


ATTACHMENT

Paragraph 1: provides that this instrument commences on 1 August 2009.

Paragraph 2: provides that Schedule 1 amends PB 118 of 2008.

Schedule 1: provides for the following amendments:

 

SCHEDULE 1

 

Brands with an increased brand premium

Amlodipine

Tablet 10 mg (as besylate)

Norvasc

Clomiphene

Tablet containing clomiphene citrate
50 mg

Serophene

Cyclosporin

Capsule 50 mg

Neoral 50

Indomethacin

Capsule 25 mg

Indocid

Methyldopa

Tablet 250 mg

Aldomet

Omeprazole

Tablet 20 mg (as magnesium)

Losec Tablets

 

Brands with a decreased brand premium

Alendronic Acid

Tablet 70 mg (as alendronate sodium)

Fosamax Once Weekly

Aspirin

Tablet 100 mg

Astrix

Betamethasone

Cream 200 micrograms (as valerate) per g, 100 g

Betnovate 1/5

Betamethasone

Cream 500 micrograms (as valerate) per g, 15 g

Betnovate 1/2

Betamethasone

Ointment 500 micrograms (as valerate) per g, 15 g

Betnovate 1/2

Betaxolol

Eye drops, solution, 5 mg (as hydrochloride) per mL, 5 mL

Betoptic

Bisacodyl

Suppositories 10 mg, 10

Dulcolax

Brimonidine

Eye drops containing brimonidine tartrate 2 mg per mL, 5 mL

Alphagan

Brinzolamide

Eye drops 10 mg per mL, 5 mL

Azopt

Bupropion

Tablet containing bupropion hydrochloride 150 mg (sustained release)

Zyban

Carbomer

Eye gel 2 mg per g, 10 g

Viscotears

Cefotaxime

Powder for injection 1 g (as sodium)

Cefotaxime Sandoz

Cefotaxime

Powder for injection 2 g (as sodium)

Cefotaxime Sandoz

Clindamycin

Capsule 150 mg (as hydrochloride)

Dalacin C

Colchicine

Tablet 500 micrograms

Colgout

Cyclosporin

Capsule 25 mg

Neoral 25

Cyclosporin

Capsule 100 mg

Neoral 100

Dexamethasone with Framycetin and Gramicidin

Ear drops containing dexamethasone 500 micrograms (as sodium metasulfobenzoate), framycetin sulfate
5 mg and gramicidin 50 micrograms per mL, 8 mL

Sofradex

Digoxin

Tablet 62.5 micrograms

Lanoxin-PG


Digoxin

Tablet 250 micrograms

Lanoxin

Diphenoxylate with Atropine

Tablet containing diphenoxylate hydrochloride 2.5 mg with atropine sulfate 25 micrograms

Lomotil

Escitalopram

Tablet 10 mg (as oxalate)

Lexapro

Escitalopram

Tablet 20 mg (as oxalate)

Lexapro

Felodipine

Tablet 2.5 mg (extended release)

Plendil ER

Fluvastatin

Capsule 20 mg (as sodium)

Vastin

Fluvastatin

Capsule 40 mg (as sodium)

Vastin

Glibenclamide

Tablet 5 mg

Daonil

Glipizide

Tablet 5 mg

Minidiab

Glyceryl Trinitrate

Tablets 600 micrograms, 100

Anginine Stabilised

Hydrocortisone

Cream containing hydrocortisone acetate 10 mg per g, 30 g

Sigmacort

Hydrocortisone

Cream containing hydrocortisone acetate 10 mg per g, 50 g

Cortef

Hydrocortisone

Cream containing hydrocortisone acetate 10 mg per g, 50 g

Sigmacort

Hydrocortisone

Ointment containing hydrocortisone acetate 10 mg per g, 30 g

Sigmacort

Hydrocortisone

Ointment containing hydrocortisone acetate 10 mg per g, 50 g

Sigmacort

Hypromellose

Eye drops 3 mg per mL, 15 mL

Genteal

Hypromellose with Carbomer 980

Ocular lubricating gel 3 mg-2 mg per g, 10 g

Genteal gel

Hypromellose with Dextran

Eye drops containing 3 mg hypromellose 4500 with 1 mg dextran 70 per mL, 15 mL

Tears Naturale

Imipramine

Tablet containing imipramine hydrochloride 10 mg

Tofranil 10

Imipramine

Tablet containing imipramine hydrochloride 25 mg

Tofranil 25

Isotretinoin

Capsule 20 mg

Roaccutane

Ketoprofen

Capsule 200 mg (sustained release)

Orudis SR 200

Labetalol

Tablet containing labetalol hydrochloride 100 mg

Trandate

Labetalol

Tablet containing labetalol hydrochloride 200 mg

Trandate

Levodopa with Carbidopa

Tablet 100 mg-25 mg (anhydrous)

Sinemet 100/25

Levodopa with Carbidopa

Tablet 250 mg-25 mg (anhydrous)

Sinemet

Levonorgestrel with Ethinyloestradiol

Tablets 150 micrograms-30 micrograms, 21

Microgynon 30

Levonorgestrel with Ethinyloestradiol

Pack containing 21 tablets 150 micrograms-30 micrograms and 7 inert tablets

Nordette 28

Levonorgestrel with Ethinyloestradiol

Pack containing 21 tablets 150 micrograms-30 micrograms and 7 inert tablets

Microgynon 30 ED

Levonorgestrel with Ethinyloestradiol

Pack containing 6 tablets 50 micrograms-30 micrograms, 5 tablets
75 micrograms-40 micrograms,
10 tablets 125 micrograms-
30 micrograms and 7 inert tablets

Triphasil 28


Levonorgestrel with Ethinyloestradiol

Pack containing 6 tablets 50 micrograms-30 micrograms, 5 tablets
75 micrograms-40 micrograms,
10 tablets 125 micrograms-
30 micrograms and 7 inert tablets

Triquilar ED

Loperamide

Capsule containing loperamide hydrochloride 2 mg

Imodium

Medroxyprogesterone

Tablet containing medroxyprogesterone acetate 5 mg

Provera

Medroxyprogesterone

Tablet containing medroxyprogesterone acetate 10 mg

Provera

Medroxyprogesterone

Injection containing medroxyprogesterone acetate 150 mg in 1 mL

Depo-Provera

Meloxicam

Tablet 7.5 mg

Mobic

Meloxicam

Tablet 15 mg

Mobic

Methylprednisolone

Injection containing methylprednisolone acetate 40 mg in 1 mL

Depo-Medrol

Mianserin

Tablet containing mianserin hydrochloride 10 mg

Tolvon

Mianserin

Tablet containing mianserin hydrochloride 20 mg

Tolvon

Norethisterone

Tablets 350 micrograms, 28

Noriday 28 Day

Norethisterone with Ethinyloestradiol

Tablets 500 micrograms-35 micrograms, 21

Brevinor

Norethisterone with Ethinyloestradiol

Pack containing 21 tablets 500 micrograms-35 micrograms and 7 inert tablets

Brevinor

Norethisterone with Ethinyloestradiol

Tablets 1 mg-35 micrograms, 21

Brevinor-1

Norethisterone with Ethinyloestradiol

Pack containing 21 tablets 1 mg-
35 micrograms and 7 inert tablets

Brevinor-1

Norethisterone with Ethinyloestradiol

Pack containing 12 tablets 500 micrograms-35 micrograms, 9 tablets
1 mg-35 micrograms and 7 inert tablets

Synphasic

Ondansetron

Tablet 4 mg (as hydrochloride dihydrate)

Zofran

Ondansetron

Tablet 8 mg (as hydrochloride dihydrate)

Zofran

Ondansetron

Wafer 4 mg

Zofran Zydis

Ondansetron

Wafer 8 mg

Zofran Zydis

Ondansetron

I.V. injection 4 mg (as hydrochloride dihydrate) in 2 mL

Zofran

Ondansetron

I.V. injection 8 mg (as hydrochloride dihydrate) in 4 mL

Zofran

Oxazepam

Tablet 15 mg

Serepax

Oxazepam

Tablet 30 mg

Serepax

Paraffin

Eye ointment, compound, containing white soft paraffin with liquid paraffin 3.5 g

Duratears

Paraffin

Pack containing 2 tubes eye ointment, compound, containing white soft paraffin with liquid paraffin, 3.5 g

Lacri-Lube

Polyvinyl Alcohol

Eye drops 14 mg per mL, 15 mL

Liquifilm Tears

Polyvinyl Alcohol

Eye drops 30 mg per mL, 15 mL

Liquifilm Forte

Potassium Chloride

Tablet 600 mg (sustained release)

Slow-K

Potassium Chloride with Potassium Bicarbonate

Tablet, effervescent, 14 mmol potassium and 8 mmol chloride

Chlorvescent

Prednisone

Tablet 1 mg

Panafcort

Prochlorperazine

Tablet containing prochlorperazine maleate 5 mg

Stemetil

Quinine

Tablet containing quinine sulfate 300 mg

Quinate

Sucralfate

Tablet equivalent to 1 g anhydrous sucralfate

Carafate

Sulfasalazine

Tablet 500 mg (enteric coated)

Salazopyrin-EN

Temazepam

Tablet 10 mg

Normison

Thyroxine

Tablet containing 50 micrograms anhydrous thyroxine sodium

Oroxine

Thyroxine

Tablet containing 75 micrograms anhydrous thyroxine sodium

Oroxine

Thyroxine

Tablet containing 100 micrograms anhydrous thyroxine sodium

Oroxine

Thyroxine

Tablet containing 200 micrograms anhydrous thyroxine sodium

Oroxine

Tinidazole

Tablet 500 mg

Fasigyn

Triamcinolone

Cream containing triamcinolone acetonide 200 micrograms per g, 100 g

Aristocort 0.02%

Triamcinolone

Ointment containing triamcinolone acetonide 200 micrograms per g, 100 g

Aristocort 0.02%

Triamcinolone with Neomycin, Gramicidin and Nystatin

Ear drops containing triamcinolone acetonide 1 mg with neomycin 2.5 mg (as sulfate), gramicidin 250 micrograms and nystatin 100,000 units per g, 7.5 mL

Kenacomb Otic

Triamcinolone with Neomycin, Gramicidin and Nystatin

Ear ointment containing triamcinolone acetonide 1 mg with neomycin 2.5 mg (as sulfate), gramicidin 250 micrograms and nystatin 100,000 units per g, 5 g

Kenacomb Otic

Valproic Acid

Tablet (enteric coated) containing sodium valproate 200 mg

Epilim EC

Valproic Acid

Tablet (enteric coated) containing sodium valproate 500 mg

Epilim EC

 

Brands with a price change but no change in brand premium

Amlodipine

Tablet 5 mg (as besylate)

Norvasc

Felodipine

Tablet 5 mg (extended release)

Plendil ER

Felodipine

Tablet 10 mg (extended release)

Plendil ER

 

Brands with an increased therapeutic group premium

Lercanidipine

Tablet containing lercanidipine hydrochloride 10 mg

Zanidip

Lercanidipine

Tablet containing lercanidipine hydrochloride 20 mg

Zanidip

 

Brands with a decreased special patient contribution

Bleomycin

Powder for injection containing bleomycin sulfate 15,000 I.U. (with any determined brand of sodium chloride injection as the required solvent)

Blenamax

Bleomycin

Powder for injection containing bleomycin sulfate 15,000 I.U. (with any determined brand of sodium chloride injection as the required solvent)

Blenoxane

Bleomycin

Powder for injection containing bleomycin sulfate 15,000 I.U. (with any determined brand of sodium chloride injection as the required solvent)

Hospira Pty Limited

 

 

 

 

Overview

The National Health Act 1953, as amended by F2009L02708, aims to regulate the pricing of pharmaceutical benefits under the Pharmaceutical Benefits Scheme (PBS). Enacted by the Australian Parliament, this legislation ensures that Australians have reliable, timely, and affordable access to a wide range of medicines. The amendment responds to instances where the Minister and the responsible person for a brand of pharmaceutical item cannot agree on an appropriate maximum price for sales to approved pharmacists. In such cases, the Minister is empowered to determine the price through legislative instruments. This determination process is intended to ensure that the pharmaceutical benefit remains accessible and affordable for patients, addressing any pricing disputes that may arise in the PBS framework. The instrument, which commenced on 1 August 2009, amends the previous determination made in 2008, reflecting recommendations from the Pharmaceutical Benefits Advisory Committee.

Scope and Application

The National Health Act 1953, through its Part VII, forms the legislative basis for the Pharmaceutical Benefits Scheme (PBS), under which the Commonwealth provides access to a wide range of medicines for Australians. This Act applies to pharmaceutical benefits, which are provided in respect of drugs and medicinal preparations declared by the Minister through legislative instruments. The Act's provisions govern the form and administration of these listed drugs, and determine the appropriate maximum prices for these drugs when the Minister and the responsible person for a brand of pharmaceutical item cannot agree on a price. The Minister can determine these prices by legislative instrument, which can also set the special patient contribution, which is the difference between the Commonwealth price and what would be the Commonwealth price based on the amount determined under the Minister's price determination. The Act applies nationally across Australia, and its scope can be extended or restricted through subordinate instruments. The legislative instrument in question amends the determination under section 85B made by legislative instrument number PB 118 of 2008, which came into effect on 1 December 2008, by adjusting the brand premiums and special patient contributions for certain brands listed on the PBS. This legislation affects responsible persons with medicines listed on the PBS. If the Minister and the responsible person for a brand of pharmaceutical item cannot reach a price agreement, the Minister determines the price for the relevant brand and the price claimed by the responsible person for sales of the brand to approved pharmacists. The instrument in question, which commenced on 1 August 2009, makes amendments to the previous determination by adjusting the brand premiums and special patient contributions for certain brands listed on the PBS. These amendments are set out in Schedule 1 to the instrument. The changes include adjustments to brand premiums for various drugs, changes to special patient contributions, and adjustments to therapeutic group premiums for certain brands. This instrument is based on recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC) and aims to ensure the continued provision of reliable, timely, and affordable access to a wide range of medicines for all Australians.

Key Provisions

The main operative sections of this instrument are those that amend the determination under section 85B of the National Health Act 1953, which pertains to the Pharmaceutical Benefits Scheme (PBS). Specifically, subsections 85B(2), 85B(3), 85B(4), and 85B(5) are key. These subsections enable the Minister to determine the appropriate maximum price for sales of the brand of pharmaceutical item to pharmacists, the price claimed by the responsible person as their price, the special patient contribution, and the circumstances in which the Commonwealth is to pay the special patient contribution, respectively. These provisions are crucial for ensuring that the PBS operates effectively by setting the financial parameters for drug pricing. The Act imposes several obligations on the parties it governs. Primarily, the Minister is required to determine the appropriate maximum price and the responsible person’s price for pharmaceutical items under subsections 85B(2) and 85B(3), respectively. These determinations must be made in the context of consultations with the responsible person and must reflect the economic and therapeutic considerations of the PBS. The responsible person, on their part, must adhere to the prices and conditions set forth by the Minister. Both parties must ensure that their actions are in line with the legislative intent to provide affordable access to medicines. Failure to comply with the provisions of this Act can result in civil or criminal consequences. Although specific penalties are not detailed in the explanatory statement, breaches of the Act could potentially lead to legal action under other relevant legislation governing the PBS or health regulations. The Minister’s authority to determine prices and the responsible person’s obligation to comply with these determinations are fundamental to the PBS’s regulatory framework. Non-compliance could be interpreted as a failure to adhere to the statutory requirements, potentially leading to enforcement actions by the Commonwealth.

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