National Health Act 1953 - Pharmaceutical Benefits - Amendment Determination under paragraph 98B(1)(a) No. 3 (24/11/2006)

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Legislation au F2006L03873 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

AMENDMENT DETERMINATION UNDER PARAGRAPH 98B (1) (a) No. 3

The Pharmaceutical Benefits Remuneration Tribunal (“the PBRT”) is established under section 98A of the National Health Act 1953 (“the Act”).  Paragraph 98B(1)(a) of the Act provides that a function of the PBRT is to determine the manner in which the Commonwealth price (as defined in section 84 of the Act) 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, which was 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 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 was previously amended on 26 July 2006 with effect from 1 August 2006 and again amended on 4 October 2006 with effect from 1 October 2006.

Effective from 1 December 2006, various legislative instruments which are incorporated by reference into the Principal Determination are revoked and remade.  The purpose of this determination is to amend the Principal Determination to reflect necessary changes to the references to the legislative instruments which are incorporated by reference into the Principal Determination. The amendments to the Principal Determination are necessary to ensure that the remade legislative instruments are incorporated by reference under section 14 of the Legislative Instruments Act 2003.

Consultation

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

 

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


ATTACHMENT

NOTES ON CLAUSES TO THE 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. 3

Clause 2 – Commencement

Clause 2 provides that the Determination commences on 1 December 2006.

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 – provides that all references in the Principal Determination to ‘the determination under paragraph 98C(1)(b) of the Act as set out in PB 32 of 2006’ are amended to ‘the determination under paragraph 98C(1)(b) of the Act as set out in PB 50 of 2006.

Item 1 – provides that all references in the Principal Determination to ‘the determination under paragraph 85A(2)(a) of the Act as set out in PB 40 of 2006’ are amended to ‘the determination under paragraph 85A(2)(a) of the Act as set out in PB 47 of 2006.

Item 2 – provides that all references in the Principal Determination to ‘the determination under subsection 85(6) of the Act as set out in PB 40 of 2006’ are amended to ‘the determination under subsection 85(6) of the Act as set out in PB 47 of 2006’.

Item 3 – Paragraph 37 – provides that the reference in paragraph 37 to ‘the determinations under sections 85, 85A and 88 of the Act as set out in PB 40 of 2006’ is amended to ‘the determinations under sections 85, 85A and 88 of the Act as set out in PB 47 of 2006.

 

Overview

The National Health Act 1953 Amendment Determination under paragraph 98B(1)(a) No. 3 was enacted to address the need to update and realign references within the principal determination concerning the Pharmaceutical Benefits Remuneration Tribunal (PBRT) to newly remade legislative instruments. The amendment ensures compliance with the Legislative Instruments Act 2003 by incorporating these changes, which were necessary to maintain the integrity and relevance of the legislative references. The amendments were made following consultations with the Pharmacy Guild of Australia, which supports the changes and is a party to the Fourth Community Pharmacy Agreement that governs the remuneration structure for pharmacists supplying pharmaceutical benefits. The objective of the amendment is to ensure that the legislative instruments referenced in the Principal Determination are current and correctly referenced, thereby facilitating the smooth operation of the pharmaceutical benefits scheme.

Scope and Application

The Pharmaceutical Benefits Remuneration Tribunal (PBRT), established under the National Health Act 1953, is tasked with determining the method for calculating the Commonwealth price for pharmaceutical benefits to be paid to approved pharmacists. This legislative amendment pertains to the National Health Act 1953 Pharmaceutical Benefits Amendment Determination under paragraph 98B(1)(a) No. 3, which updates references within the Principal Determination, effective from 1 December 2006. The amendment ensures that the remade legislative instruments are incorporated correctly under the Legislative Instruments Act 2003. The amendment process involved consultation with the Pharmacy Guild of Australia, which represents the majority of approved pharmacists and is a party to the Fourth Community Pharmacy Agreement. The changes are technical and intended to reflect the necessary updates in the legislative instruments referenced within the Principal Determination.

Key Provisions

The National Health Act 1953 Amendment Determination under paragraph 98B(1)(a) No. 3 primarily amends the National Health Act 1953 Pharmaceutical Benefits Determination, which sets out how the Commonwealth price for pharmaceutical benefits is calculated. This determination ensures that the fees paid to pharmacists for the supply of pharmaceutical benefits are accurately reflected. This amendment is necessary to align the Principal Determination with the legislative instruments as per the Legislative Instruments Act 2003. The obligations imposed by this amendment require the Pharmaceutical Benefits Remuneration Tribunal (PBRT) to adjust references within the Principal Determination to match the newly remade legislative instruments. Specifically, references to certain determinations and instruments must be updated to reflect the current legislative status. This ensures that the Principal Determination remains legally consistent and up-to-date with the latest legislative requirements. The amendment also requires that any changes to the Principal Determination be made in consultation with the Pharmacy Guild of Australia, an organisation representing the majority of approved pharmacists. Failure to comply with the requirements set out in this determination could result in legal challenges or disputes regarding the accuracy and legality of the fees paid to pharmacists. However, the Act does not specify explicit penalties for non-compliance with this particular amendment. Instead, the focus is on ensuring the accurate and legal application of the amended provisions. The principal aim is to maintain a transparent and legally sound framework for calculating and paying pharmaceutical benefits to pharmacists. In summary, the National Health Act 1953 Amendment Determination under paragraph 98B(1)(a) No. 3 is a necessary update to the Principal Determination, ensuring that references to legislative instruments are current and accurate. This amendment serves to uphold the legal integrity of the fee structure for pharmaceutical benefits, with obligations falling on the PBRT to make the necessary adjustments. While the Act does not specify penalties for non-compliance with this particular amendment, the importance lies in maintaining a legally compliant and transparent process for pharmacists’ remuneration.

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