EXPLANATORY STATEMENT
NATIONAL HEALTH ACT 1953
PHARMACEUTICALS BENEFITS
AMENDMENT DETERMINATION UNDER SUBSECTION 84C (7) No. 2
Division 1A of Part VII of the National Health Act 1953 provides for the Safety Net scheme in relation to pharmaceutical benefits. The Safety Net scheme is designed to provide financial protection for those patients and their families who require a large number of Pharmaceutical Benefits Scheme and Repatriation Pharmaceutical Benefits Scheme medicines.
The purpose of the National Health Act 1953 Pharmaceutical Benefits Amendment Determination under subsection 84 (7) No. 2 (Determination) is to amend the National Health Act 1953 Pharmaceutical Benefits Determination under subsection 84C (7) made on 14 June 2006 (Principal Determination) to reflect the annual adjustment to the additional fee. The Principal Determination has been previously amended on 24 July 2007 (with effect from 1 August 2007). The additional fee is intended as a payment to the pharmacist for recording the supply of a pharmaceutical benefit where its Commonwealth price is less than the patient co-payment. The Determination provides that the price for a pharmaceutical benefit or repatriation pharmaceutical benefit will not exceed the patient co-payment. In some instances, a pharmacist may not be able to charge the full amount of the additional fee since it would cause the price to exceed the patient co-payment.
The additional fee is indexed annually using the Wage Cost Index 9. On this occasion, the additional fee for a ready-prepared pharmaceutical benefit will increase by two cents to $1.03 and the additional fee for an extemporaneously-prepared pharmaceutical benefit will be amended to $1.42.
Subsection 84C (9) of the National Health Act 1953 provides that the Minister may not determine an additional fee without the agreement, in writing, of the Pharmacy Guild of Australia. The Pharmacy Guild of Australia has been consulted on this matter and has agreed, in writing, to the making of this Determination.
This Determination, which amends the Principal Determination made on 14 June 2006, will commence on 1 August 2008.
Details of the Determination are set out in the Attachment.
This Determination is a legislative instrument for the purpose of the Legislative Instruments Act 2003.
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 subsection 84C (7) No.2.
Clause 2 – Commencement
Clause 2 provides that the Determination commences on 1 August 2008.
Clause 3 – Amendment of the Determination under subsection 84C (7)
Clause 3 provides that the Principal Determination is amended as set out in the Schedule.
Schedule – Amendments
Item 1 – Paragraph 3 – provides that the definition of “pharmaceutical item” is to be inserted and defined as “has the same meaning as in section 84AB of the Act”..
Item 2 – Paragraph 3 ‑ provides that the reference in paragraph 3 of the Principal Determination to ‘means a pharmaceutical benefit’ is amended to ‘means a brand of a pharmaceutical item’.
Item 3 – Paragraph 4 (b) (i) ‑ provides that the amount of the additional fee for a ready prepared pharmaceutical benefit in paragraph 4 (b) (i) of the Principal Determination is increased by two cents to $1.03.
Item 4 Paragraph 4 (b) (ii) ‑ provides that the amount of the additional fee for an extemporaneously-prepared pharmaceutical benefit in paragraph 4 (b) (ii) of the Principal Determination is amended to $1.42.