National Health Act 1953 - Amendment Rules under subsection 99AAA(8) (No. PB 85 of 2008)

Administered by Department of Health, Disability and Ageing

Legislation au F2008L02898 Rules Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

NATIONAL HEALTH ACT 1953

 

AMENDMENT RULES UNDER SUBSECTION 99AAA(8)

 

NO. PB 85 OF 2008

 

 

Subsection 99AAA(8) of the National Health Act 1953 (‘the Act’) provides  that the Minister must by an instrument in writing, make rules in relation to claims for payment made by approved suppliers under Part VII Division 3 of the Act.

 

The National Health Act 1953 – Rules under subsection 99AAA(8) (PB 49 of 2008), which commenced on 7 April 2008 (the Rules), specify what information needs to be supplied to the Secretary, how it is to be supplied and the procedures to be followed by approved suppliers.  These Rules also specify the Secretary’s requirements when processing, determining and paying claims made by approved suppliers. 

 

The National Health Act 1953 - Amendment Rules under subsection 99AAA(8) (the Amending Rules) amend Schedule 2 of the Rules.

 

The current Fourth Community Pharmacy Agreement between the Commonwealth and the Pharmacy Guild of Australia (the Agreement) commenced on 1 December 2005.  This Agreement was amended as of March 2007 and August 2007 to incorporate the pharmacy restructural adjustment package to assist pharmacists to adjust to the Pharmaceutical Benefits Scheme (PBS) reform amendments to the Act. 

 

As part of this restructural adjustment package, the Minister for Health and Ageing and the Pharmacy Guild of Australia agreed that from 1 August 2008, a payment of $1.50 will be paid to all approved suppliers except approved hospital authorities located at a public hospital which has implemented pharmaceutical reforms under Section 21, Part 4 of the Australian Health Care Agreements 2003-2008.  However this payment will only be made where the cost of the pharmaceutical benefit to the patient is no more than the co-payment under the Act.

 

These amendments ensure that approved suppliers provide sufficient information in their claims for payment to enable the Medicare Australia Chief Executive Officer (CEO) to make payments agreed under the pharmacy compensation package. 

 

Details of the Amending Rules are set out in the Attachment.

 

Consultation:

 

The Department of Health and Ageing has consulted with Medicare Australia in amending the Rules under subsection 99AAA(8).  Through discussions and correspondence the Department and Medicare Australia have agreed on the content and format of these amendments.  Medicare Australia makes payments to approved suppliers on behalf of the Secretary to the Department of Health and Ageing for pharmaceutical benefits supplied under Part VII of the Act.

 

These amendments to the Rules do not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure.  A preliminary assessment was complete and it confirmed that these amendments are not regulatory in nature, will not impact on business activity and will have no, or minimal impact on business, individuals and the economy.

 

 

ACCESS & SYSTEMS BRANCH

DEPARTMENT OF HEALTH AND AGEING

             JULY 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

 

 

1. Name of Rules

 

Rule 1 provides that the title of the Rules is the National Health Act 1953 – Amendment Rules under subsection 99AAA(8) No. PB 85 of 2008 (the Amending Rules).

 

2. Commencement:

 

Rule 2 provides that the Amending Rules commence on 1 August 2008.

 

3  Amendment of National Health Act 1953 – Rules under subsection 99AAA(8) No. PB 49 of 2008

 

Rule 3 provides that the Schedule to the Amending Rules amends the National Health Act 1953 – Rules under subsection 99AAA(8) (No. PB 49 of 2008), which commenced on 7 April 2008.

 

 

Schedule – Amendments

 

Schedule 2 Parts 1, 2 & 3

 

Item 1  Additional amendments have been made to all field codes specifying the valid values for each field to clarify the information required to be provided by approved suppliers.

 

Schedule 2 Part 2

 

Item 2  The Prescriber Id field has been amended to include authorised optometrists as authorised optometrists are now able to write prescriptions for the supply of certain pharmaceutical benefits under the Act.

 

Item 3   The Patient Category field now includes a new code for hospital patients.

 

Item 4   The Brand field has been amended to specify that approved suppliers must now identify the brand for all pharmaceutical benefits supplied, except for extemporaneously prepared items.

 

Item 6  The Immediate Supply Necessary field has been amended to require approved suppliers to include the valid value of ‘S’ for pharmaceutical benefits that fall within the Safety Net 20 Day Rule.

 

Item 7  The Entitlement ID field has been amended to identify the valid values for each entitlement identified in the claim for payment.

 

Item 8  The Family Name and Given Name fields have been amended to include valid symbols to clarify the information required to be provided by approved suppliers.

 

Item 9  The Pharmacy Processing Code field has been amended to remove the ‘03’ Safety Net valid code as it is no longer an applicable code.  It also amends the title for the ‘01’ code.

 

 

 

Overview

The National Health Act 1953 Amendment Rules under subsection 99AAA(8) No. PB 85 of 2008 were introduced to address the need for updated information requirements and procedures for claims processing in relation to payments made by approved suppliers under Part VII Division 3 of the National Health Act 1953. These rules were enacted to ensure approved suppliers provide sufficient information in their claims to enable accurate payments as part of the pharmacy compensation package. The Department of Health and Ageing, through consultation with Medicare Australia, established these amendments to clarify the information needed and update the specifications in the original rules (No. PB 49 of 2008), which commenced on 7 April 2008. The Amending Rules, which came into effect on 1 August 2008, specifically address the need to include details such as the prescriber ID for authorised optometrists, new patient category codes, brand identification for pharmaceutical benefits, and the removal of outdated safety net codes. These changes aim to streamline the processing of claims and ensure the accuracy of payments made under the Act.

Scope and Application

The National Health Act 1953 – Amendment Rules under subsection 99AAA(8) (No. PB 85 of 2008) amends the National Health Act 1953 – Rules under subsection 99AAA(8) (No. PB 49 of 2008) which govern claims for payment made by approved suppliers under Part VII Division 3 of the Act. These rules apply to approved suppliers, including pharmacies and other entities that provide pharmaceutical benefits to patients. The amendments are designed to ensure that approved suppliers provide sufficient information in their claims to enable the Medicare Australia Chief Executive Officer to process payments as agreed under the pharmacy compensation package. The changes came into effect on 1 August 2008 and include updates to field codes, prescriber identification, patient category codes, brand identification, and other specific claim details. Notably, the amendments also address the restructural adjustment package agreed upon between the Minister for Health and Ageing and the Pharmacy Guild of Australia, providing a payment of $1.50 to approved suppliers from 1 August 2008, excluding approved hospital authorities at public hospitals that have implemented pharmaceutical reforms. The Minister for Health and Ageing, in consultation with Medicare Australia, has overseen these amendments, which are not considered regulatory and have minimal impact on business or individuals.

Key Provisions

The National Health Act 1953 Amendment Rules under subsection 99AAA(8) (PB 85 of 2008) modify the existing rules concerning claims for payment by approved suppliers, particularly focusing on the information that needs to be supplied to the Secretary and the procedures that need to be followed (Rule 3). These rules, which commence on 1 August 2008 (Rule 2), update the field codes to clarify the information required by approved suppliers, including additional specifications for fields such as Prescriber ID, Patient Category, Brand, Entitlement ID, Family Name and Given Name, and Pharmacy Processing Code (Schedule 2 Parts 1, 2 & 3). These amendments ensure that the information submitted by approved suppliers aligns with the requirements set forth by the Secretary, thus facilitating accurate processing and payment of claims. Approved suppliers under Part VII Division 3 of the National Health Act 1953 are required to provide precise and updated information in their claims to the Secretary. This includes ensuring that the Prescriber ID field includes authorised optometrists, who are now permitted to prescribe certain pharmaceutical benefits. Additionally, the Patient Category field must now include a new code for hospital patients, and approved suppliers must identify the brand for all pharmaceutical benefits supplied, except for extemporaneously prepared items. The amendments also require approved suppliers to include specific valid values for other fields such as Entitlement ID and to use valid symbols in the Family Name and Given Name fields. These obligations ensure that the information submitted is comprehensive and compliant with the requirements set by the Secretary. Failure to comply with the requirements specified in the Amending Rules may result in inaccuracies in the processing and payment of claims. However, the Explanatory Statement indicates that these amendments do not create new offences or penalties. Instead, they aim to ensure that approved suppliers provide sufficient information to enable the Medicare Australia Chief Executive Officer (CEO) to make payments agreed under the pharmacy compensation package. The focus is on ensuring that the information provided is accurate and complete to facilitate effective processing and payment of claims, rather than imposing penalties for non-compliance. In summary, the National Health Act 1953 Amendment Rules under subsection 99AAA(8) (PB 85 of 2008) focus on clarifying the information required from approved suppliers in their claims for payment. These rules, which come into effect on 1 August 2008, amend the field codes to include additional specifications and clarify the information required by approved suppliers. While these amendments do not introduce new offences or penalties, they are designed to ensure that the information provided is accurate and complete, thereby facilitating effective processing and payment of claims by the Secretary.

Legal classification tags

Area of Law
Health Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.