EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

AMENDMENT DETERMINATION UNDER PARAGRAPH 98B (1) (a)

Paragraph 98B (1) (a) of the National Health Act 1953 (“the Act”) provides that a function of the Pharmaceutical Benefits Remuneration Tribunal (“the PBRT”) is to determine the manner in which the Commonwealth price for all or any pharmaceutical benefits is to be worked out for the purpose of payments to approved pharmacists for the supply of pharmaceutical benefits.

Subsection 98BAA (1) of the Act requires that, where the Commonwealth and the Pharmacy Guild of Australia (or another pharmacists’ organisation representing a majority of approved pharmacists) enter into an agreement relating to the manner in which the Commonwealth price for pharmaceutical benefits is to be calculated, the PBRT, when making a determination pursuant to paragraph 98B (1) (a) of the Act, is to give effect to the terms of that agreement.

The current agreement is the Fourth Community Pharmacy Agreement (“the Fourth Agreement”) between the Commonwealth and the Pharmacy Guild of Australia, signed on    16 November 2005 and commenced on 1 December 2005.  On 23 June 2006 the PBRT made the National Health Act 1953 Pharmaceutical Benefits Determination under paragraph 98B(1)(a) which commenced on 1 July 2006 (“the Principal Determination”).  The Principal Determination gives effect to the terms of the Fourth Agreement that set out the fees that are to be paid to pharmacists for the supply of pharmaceutical benefits.  The Principal Determination has been previously amended on 26 July 2006 (with effect from 1 August 2006), 4 October 2006 (with effect from 1 October 2006), 24 November 2006 (with effect from 1 December 2006), 28 February 2007 (with effect from 1 March 2007), 13 March 2007 (with effect from 1 April 2007), 12 April 2007 (with effect 1 May 2007), 20 June 2007 (with effect from 1 July 2007), 30 July 2007 (with effect from 1 August 2007), 13 November 2007 (with effect from 1 December 2007), 12 June 2008 (with effect from 1 July 2008), and 9 July 2008 (with effect from 1 August 2008).

Part 2 of the Fourth Agreement sets out the manner in which the Commonwealth price for pharmaceutical benefits is to be calculated.  A component of the Commonwealth price is the pharmacists’ dispensing fees.  The method by which the pharmacists’ dispensing fee is to be adjusted, with effect from 1 July of each year is also set out in the Fourth Agreement.  As part of the Fourth Agreement, the Minister for Health and Ageing (on behalf of the Commonwealth) and the Pharmacy Guild of Australia have agreed to the amount of the pharmacists’ dispensing fee to have effect from 1 July 2009.  This Determination is made pursuant to paragraph 98B (1) (a) of the Act and gives effect to the terms of the Fourth Agreement concerning the Commonwealth price for pharmaceutical benefits.  The dispensing fee for ready-prepared pharmaceutical benefits will increase by 43 cents to $6.42, and the dispensing fee for extemporaneously-prepared pharmaceutical benefits will increase by 43 cents to $8.46.

The Principal Determination contains references to other legal instruments made under the Act.  The other instruments referred to in the Principal Determination are currently described by reference to both the section of the Act under which the instrument is made, and the “PB number” which is used to identify particular versions of pharmaceutical benefits instruments. This Determination both simplifies the drafting and ensures that the instrument referred to in Principal Determination is the current one by omitting all references to particular PB numbers.

Further details of the Determination are set out in the Attachment.

Consultation

Amendments to the Principal Determination have been made in consultation with the Pharmacy Guild of Australia, an organisation representing a majority of approved pharmacists.  The Pharmacy Guild of Australia is a party to the Fourth Agreement and supports this Determination.

The Department of Health and Ageing on behalf of the Commonwealth and The Pharmacy Guild of Australia both made their submissions to the PBRT, and the PBRT made a determination pursuant to paragraph 98B (1) (a) of the Act to give effect to the terms of this agreement.

 The Principal Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

ATTACHMENT

NOTES ON CLAUSES TO THE AMENDMENT DETERMINATION

Clause 1 – Name of Determination

Clause 1 provides that the name of the Determination is the National Health Act 1953 Pharmaceutical Benefits Amendment Determination under paragraph 98B(1)(a) No.13.

Clause 2 – Commencement

Clause 2 provides that the Amendment Determination commences on 1 July 2009.

Clause 3 – Amendment of the Determination under paragraph 98B(1)(a)

Clause 3 provides that the National Health Act 1953 Pharmaceutical Benefits Determination under paragraph 98B(1)(a) made on 23 June 2006 (“the Principal Determination”) is amended as set out in the Schedule.

Schedule – Amendments

Item 1 – Paragraph 6 ‑ provides that the amount of the dispensing fee referred to in the definition of “extemporaneously-prepared dispensing fee” in paragraph 6 of the Principal Determination is to be increased by 43 cents to $8.46.

Item 2 – Paragraph 6 ‑ provides that the amount of the dispensing fee referred to in the definition of “ready-prepared dispensing fee” in paragraph 6 of the Principal Determination is to be increased by 43 cents to $6.42.

Item 3 – Paragraph 6 ‑ provides that the reference in the Principal Determination to PB 89 of 2007 is omitted.

Item 4 – Paragraph 6 – provides that the reference in the Principal Determination to PB 52 of 2007 is omitted.

Item 5 – Paragraph 7 – provides that the reference in the Principal Determination to PB 52 of 2007 is omitted.

Item 6 – Paragraph 9 – provides that the reference in the Principal Determination to PB 89 of 2007 is omitted.

Item 7 – Paragraph 12 – provides that the reference in the Principal Determination to PB 89 of 2007 is omitted.

Item 8 – Paragraph 13 – provides that the reference in the Principal Determination to PB 52 of 2007 is omitted.

Item 9 – Paragraph 14 – provides that the references in the Principal Determination to PB 89 of 2007 are omitted.

Item 10 – Paragraph 19 – provides that the reference in the Principal Determination to PB 52 of 2007 is omitted.

Item 11 – Paragraph 25 – provides that the references in the Principal Determination to PB 52 of 2007 are omitted.

Item 12 – Paragraph 37 – provides that the reference in the Principal Determination to PB 89 of 2007 is omitted.