EXPLANATORY STATEMENT
INSTRUMENT NUMBER PB 100 OF 2008
NATIONAL HEALTH ACT 1953
AMENDMENT DETERMINATION UNDER
SUBSECTIONS 85A(1) AND (2) AND 88 (1C)
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 declared by the Minister by legislative instrument to be so under subsection 85(2). These are listed drugs as defined in subsection 84(1). Part VII also applies to certain extemporaneously-prepared medicinal preparations as a result of declarations under paragraph 85(2)(b).
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 (except for certain extemporaneously-prepared pharmaceutical benefits) what constitutes the pharmaceutical benefit (defined in subsection 84(1)) under Part VII of the Act.
Subsection 85A(1) authorises the Minister to determine the form or forms of pharmaceutical benefits or pharmaceutical item that may be prescribed under Part VII of the Act by specified classes of persons.
Subsection 85A(2) authorises the Minister to determine various matters with respect to the writing of prescriptions by persons included in a specified class of persons for the supply of a pharmaceutical benefit. Paragraph 85A(2)(a) authorises the determination of the maximum quantity or number of units that may in one prescription be directed to be supplied for all purposes or for a particular purpose. Paragraph 85A(2)(b) authorises the determination of the maximum number of occasions in which the supply may in one prescription be directed to be repeated for all purposes or a particular purpose. Paragraph 85A(2)(c) authorises the determination of the manner of administration that may, in a prescription, be directed to be used.
Section 88 provides for various matters relating to the prescribing of pharmaceutical benefits. Subsection 88(1C) authorises the Minister to determine the pharmaceutical benefits for the supply of which an optometrist is authorised to write a prescription on or after 1 January 2008.
This legislative instrument in giving effect to recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) amends determination under subsections 85A(1) and (2), and 88(1C) made by legislative instrument number PB 78 of 2008 which came into effect on 1 August 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 November 2008, was made on 2 October 2008.
Consultations
The involvement of interested parties through the membership of the Pharmaceutical Benefits Advisory Committee (PBAC) constitutes a formal and ongoing process of consultation. The PBAC is an independent expert body established by section 100A which makes recommendations to the Minister about which drugs and medicinal preparations should be available as pharmaceutical benefits. PBAC members are appointed following nomination by prescribed organisations and associations from consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and specialists, with at least one member selected from each of those interests or professions. Remaining members are persons whom the Minister is satisfied have qualifications and experience in a field relevant to the functions of the PBAC, and that would enable them to contribute meaningfully to the deliberations of the PBAC. When making recommendations relevant to a medicine on the PBS, the PBAC takes into account the medical conditions for which the medicine has been approved for use in Australia, its clinical effectiveness, safety and cost-effectiveness compared with other treatments.
The medicine determined under subsection 88(1C) reflects the recommendations of the PBAC and the outcome of the consultation process.
ATTACHMENT
Section 1: provides that this instrument commences on 1 November 2008.
Section 2: provides that Schedule 1 amends PB 78 of 2008.
SUMMARY OF CHANGES
SCHEDULE 1
Addition of Form
Fluorometholone Eye drops containing fluorometholone acetate 1 mg per mL, 5 mL
Alteration of form and maximum quantity or number
Polyethylene Glycol 400 with Propylene Glycol
Form Maximum quantity or number
From: Eye drops 4 mg–3 mg per mL, single dose units 0.7 mL, 28 3
To: Eye drops 4 mg–3 mg per mL, single dose units 0.8 mL, 28 2
Overview
The National Health Act 1953, as amended by the instrument F2008L03759, addresses the need to provide Australians with reliable, timely, and affordable access to a wide range of medicines through the Pharmaceutical Benefits Scheme (PBS). Enacted by the Commonwealth Government, the Act ensures that benefits are provided by the Commonwealth in accordance with the provisions outlined in Part VII, which is the legislative foundation of the PBS. This legislative instrument, made on 2 October 2008 and commencing on 1 November 2008, amends earlier determinations to align with recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC). The PBAC, an independent expert body, plays a crucial role in advising the Minister on which drugs and medicinal preparations should be available as pharmaceutical benefits, taking into account various factors such as clinical effectiveness, safety, and cost-effectiveness. This amendment aims to enhance the efficiency and accessibility of the PBS by adjusting the forms of certain drugs and the quantities that can be prescribed, ultimately ensuring that the scheme meets the evolving healthcare needs of Australians.
Scope and Application
The National Health Act 1953 Amendment Determination under subsections 85A(1) and (2) and 88(1C), instrumental in the administration of the Pharmaceutical Benefits Scheme (PBS), applies to drugs and medicinal preparations that are declared by the Minister to constitute pharmaceutical benefits. These listed drugs are outlined in subsection 84(1) and include specific forms and quantities that can be prescribed by specified classes of persons, as determined by the Minister. This determination ensures that the PBS provides reliable, timely, and affordable access to a wide range of medicines for all Australians. The Act operates on a national level, extending its reach across the Commonwealth, and applies to the entities and individuals involved in the prescription, supply, and administration of these pharmaceutical benefits. This includes doctors, pharmacists, and patients who are part of the PBS. The Act does not specify exclusions but operates through subordinate instruments to define the scope of the pharmaceutical benefits available under the PBS. The amendments made by this instrument are based on recommendations from the Pharmaceutical Benefits Advisory Committee, which consults with various stakeholders, including healthcare professionals and consumer representatives, to ensure the PBS meets the health needs of Australians.
Key Provisions
The National Health Act 1953 (the Act), as amended by the instrument (F2008L03759), modifies the Pharmaceutical Benefits Scheme (PBS) to ensure the Commonwealth can provide reliable, timely, and affordable access to a wide range of medicines for Australians. The Act, particularly under Part VII, governs the provision of pharmaceutical benefits, with the Minister declaring listed drugs by legislative instrument (sections 85(1) and 85(2)). These declarations determine the specific forms, strengths, and units of the drugs that constitute a pharmaceutical benefit (section 85(3)). Furthermore, the Minister can determine the manner of administration and the brand of the pharmaceutical item (sections 85(5) and 85(6)).
The Act also authorises the Minister to make various determinations concerning the prescription of pharmaceutical benefits (sections 85A(1) and 85A(2)). For example, the Minister can determine the maximum quantity or number of units that may be supplied in one prescription, the maximum number of occasions for the supply, and the manner of administration (subsections 85A(2)(a), (b), and (c)). Additionally, section 88(1C) of the Act allows the Minister to determine the pharmaceutical benefits for which an optometrist is authorised to write prescriptions.
Under this instrument, the Minister amends the determinations made under subsections 85A(1) and (2), and 88(1C) by legislative instrument number PB 78 of 2008, which came into effect on 1 August 2008. The changes are detailed in Schedule 1 of the instrument and include the addition of a new form of Flurometholone eye drops and alterations to the form and maximum quantity of Polyethylene Glycol 400 with Propylene Glycol. These amendments are set to commence on 1 November 2008.
The Act imposes various obligations on the parties it governs. The Minister must consult with the Pharmaceutical Benefits Advisory Committee (PBAC) when making recommendations relevant to medicines on the PBS. The PBAC, an independent expert body, consists of members with diverse qualifications and experience, including representatives from consumer groups, health economists, pharmacists, general practitioners, and specialists. The Minister is required to consider the recommendations of the PBAC when making determinations under the Act. Furthermore, the Act mandates that any amendments to the PBS must be made by legislative instrument and must be in line with the recommendations of the PBAC and the outcome of the consultation process.
Failure to comply with the provisions of the Act can result in civil or criminal consequences. However, the instrument does not explicitly state any specific offences, penalties, or civil/criminal consequences for breach. The determinations and amendments under the Act are designed to ensure that the PBS continues to provide affordable and effective access to medicines for all Australians.