EXPLANATORY STATEMENT
NATIONAL HEALTH ACT 1953
National Health Act 1953 – Determination under subsection 99(4) Amendment Determination 2015 (No.1)
PB 67 of 2015
Authority
Subsection 99(4) of the National Health Act 1953 (the Act) provides that an approved hospital authority is entitled to payment from the Commonwealth at such rates and subject to such conditions as the Minister determines, in respect of the supply of pharmaceutical benefits to patients receiving treatment in or at an approved hospital. The National Health Act 1953 - Determination under subsection 99(4) (the Principal Determination) determines the rates and conditions of payments to public hospitals. Another determination under subsection 99(4) determines the rates and conditions of payments to private hospitals.
Purpose
This Amendment Determination amends the Principal Determination to reflect the Determination made by the Pharmaceutical Benefits Remuneration Tribunal under paragraph 98B(1)(a) of the Act, which will take effect from 1 July 2015.
The amendments reflect the change to the date that the basic wholesale price for a drug or container is ascertained. The amendments also include a correction of the name of the Department of Health.
Details of the amendments made by this Determination are set out in the Attachment.
Background
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.
The Principal Determination sets out the rates of payment for the supply of pharmaceutical benefits by a public hospital authority approved under section 94 of the Act.
Consultation
The changes to this Determination are consequential amendments as a result of amendments to the Determination under paragraph 98B(1)(a). The changes to the 98B(1)(a) instrument are a direct result of the Sixth Community Pharmacy Agreement between the Pharmacy Guild of Australia and the Commonwealth. For this reason, no consultation on this determination was considered necessary.
This Determination commences on 1 July 2015.
This Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
ATTACHMENT
Details of the National Health Act 1953 – Determination under subsection 99(4) Amendment Determination 2015 (No. 1)
Section 1 - Name of Determination
This section provides that the name of the determination is the National Health Act 1953 – Determination under subsection 99(4) Amendment Determination 2015 (No. 1) and that it may also be cited as PB 67 of 2015.
Section 2 - Commencement
This section provides that the determination commences on 1 July 2015.
Section 3 - Amendment of National Health Act 1953 – Determination under subsection 99(4)
This section provides that Schedule 1 amends the National Health Act 1953 – Determination under subsection 99(4) which commenced on 1 October 2006.
SCHEDULE 1 – AMENDMENTS
Item [1] - Paragraph 3
This item substitutes the definition of ‘the Secretary’ to correctly reflect the change of Department name from the Department of Health and Ageing to the Department of Health.
Item [2] - Paragraph 27
The item removes the date reference of 1 May and replaces it with 15 June as the date for the basic wholesale price of a drug to be ascertained in each year. This change is made to be consistent with current practice and changes made to the Determination made under 98B(1)(a).
Item [3] - Paragraph 29
The item removes the date reference of 1 May and replaces it with 15 June as the date for the basic wholesale price of a drug to be ascertained in each year. This change is made to be consistent with current practice and changes made to the Determination made under 98B(1)(a).
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
National Health Act 1953 – Determination under subsection 99(4) Amendment Determination 2015 (No. 1)
This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
This Amendment Determination amends the Principal Determination to reflect the new Determination made under paragraph 98B(1)(a) of the Act, that will take effect from 1 July 2015.
The Principal Determination sets out the rates of payment for the supply of pharmaceutical benefits by a public hospital authority approved under section 94 of the Act.
The changes include amending the reference to the name of the Department in the Definition section and also amend and date references to ensure consistency with current practice and other changes to the Determination made under paragraph 98B(1)(a) which take effect on 1 July 2015.
Human rights implications
This legislative instrument engages Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.
The Pharmaceutical Benefits Scheme (PBS) is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines.
Conclusion
This legislative instrument is compatible with human rights because it advances the protection of human rights.
Julianne Quaine
Assistant Secretary
Pharmaceutical Access Branch
Pharmaceutical Benefits Division