National Health Amendment Act (No. 2) 1993

Administered by Department of Health, Disability and Ageing

Legislation au C2004A04661 Not in force Act

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National Health Amendment Act
(No. 2) 1993

No. 106 of 1993

 

An Act to amend the National Health Act 1953

[Assented to 22 December 1993]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the National Health Amendment Act (No. 2) 1993.

(2) In this Act, “Principal Act” means the National Health Act 19531.

Commencement

2. This Act commences on 1 January 1994.


Object of Act

3. The object of this Act is to amend Part VII of the National Health Act 1953 in order to limit the application of the pharmaceutical benefits safety net under that Part.

Eligibility for concession and entitlement cards

4. Section 84C of the Principal Act is amended:

(a) by omitting from subsection (1AA) “is not less than $300” and substituting “$400 or an amount that, together with the amount that the person may be charged under paragraph 87(2)(b), (c) or (e) (whichever is applicable) for the supply of a pharmaceutical benefit, would not be less than $400”;

(b) by adding at the end of subsection (1AA) the following Note:

“Note: These amounts of $400 are periodically adjusted under section 99G.”;

(c) by omitting subsection (1);

(d) by adding at the end of subsection (4) the following Note:

“Note: The amounts of $15.00 and $2.50 referred to in this subsection are periodically adjusted under section 99G.”.

Modification of amounts paid

5. Section 84CA of the Principal Act is amended by adding at the end the following Note:

“Note: This amount of $2.50 is periodically adjusted under section 99G.”.

Limited charges for pharmaceutical benefits

6. Section 87 of the Principal Act is amended:

(a) by omitting paragraphs (2)(b) and (c) and substituting the following paragraphs:

“(b) upon a general benefit prescription if, during the relevant entitlement period in which the supply is made, the person supplied has previously been charged, for supplies of pharmaceutical benefits, an amount that is not less than $400—charge the person $2.50; or

(c) upon a general benefit prescription if, during the relevant entitlement period in which the supply is made, the person supplied, together with the members of his or her family, has previously been charged, for supplies of pharmaceutical benefits, an amount that is not less than $400—charge the person $2.50; or”;

(b) by adding at the end of subsection (2) the following Note:

“Note: The amounts of $2.50, $400 and $15.00 referred to in this subsection are periodically adjusted under section 99G.”;


(c) by inserting after subsection (2AA) the following subsection:

“(2AB) In determining, for the purposes of paragraph (2)(b) or (c), an amount that has previously been charged for supplies of pharmaceutical benefits:

(a) supplies taken, because of subsection 99(2A), to be supplies otherwise than under this Part are taken to be supplies of pharmaceutical benefits; and

(b) supplies of repatriation pharmaceutical benefits are taken to be supplies of pharmaceutical benefits; and

(c) any additional amounts charged under subsection (2A) are to be disregarded; and

(d) the amount that would, apart from paragraph (2)(b) or (c) (as the case requires), be chargeable in respect of the particular supply in question is to be included.”.

Payment for supply of benefits

7. Section 99 of the Principal Act is amended:

(a) by adding at the end of subsection (2A) the following Note:

“Note: These amounts of $15.00 are periodically adjusted under section 99G.”;

(b) by adding at the end of subsections (2AB) and (2B) the following Note:

“Note: These amounts of $2.50 are periodically adjusted under section 99G.”.

Definitions

8. Section 99F of the Principal Act is amended:

(a) by omitting the definition of “general patient full safety net”;

(b) by omitting the definition of “general patient restricted safety net” and substituting the following definition:

“general patient safety net” means each amount of $400 referred to in subsection 84C(1AA) or paragraph 87(2)(b) or (c);”.

Indexation

9. Section 99G of the Principal Act is amended:

(a) by omitting from subsection (1) “An amount” and substituting “Subject to subsection (1A), an amount”;

(b) by omitting from the second column of Item 4 of the CPI Indexation Table in subsection (1) “restricted”;

(c) by omitting Item 5 of the CPI Indexation Table in subsection (1);

(d) by inserting after subsection (1) the following subsection:

“(1A) The general patient safety net is not to be indexed in 1994.”;


(e) by adding at the end of subsection (2) the following Note:

“Note: The Department of Health, Housing, Local Government and Community Services can tell you what the current indexed amounts are.”;

(f) by inserting after subsection (3) the following subsection:

“(3A) For the purposes of the definition of ‘current figure’ in subsection (3), the general patient safety net is taken not to have been indexed on or before 1 January 1994.”.

NOTE

1. No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; Nos. 22, 44, 72, 118, 131 and 132, 1987; Nos. 79, 87, 99 and 155, 1988; No. 95, 1989; Nos. 3, 84, 106 and 141, 1990; Nos. 6, 68, 70, 73, 83, 84, 115, 116, 119, 122, 141, 169, 175, 208 and 211, 1991; and Nos. 70, 81, 88, 136, 192, 200, 204 and 230, 1992; and Nos. 28 and 00, 1993.

[Minister’s second reading speech made in

Senate on 7 September 1993

House of Representatives on 17 November 1993]

Overview

The National Health Amendment Act (No. 2) 1993 was enacted by the Parliament of Australia to amend the National Health Act 1953, specifically targeting the pharmaceutical benefits safety net under Part VII. The Act was introduced to address the need to adjust and limit the application of certain thresholds and charges related to pharmaceutical benefits, thereby ensuring more effective management of costs within the healthcare system. The primary objective of the Act is to revise the eligibility criteria and the amounts charged for pharmaceutical benefits, ensuring they align with contemporary healthcare economic realities while maintaining the provision of essential health services to the public. This legislative amendment was designed to modify the financial thresholds and charges associated with the safety net, which directly affects the affordability and accessibility of pharmaceutical benefits for individuals. By setting new parameters for eligibility and adjusting the indexed amounts periodically, the Act aims to balance the need for cost containment with the imperative of providing equitable healthcare services. The changes introduced by this Act reflect a strategic policy approach to healthcare financing, ensuring that the pharmaceutical benefits scheme remains sustainable and effective in meeting the needs of the Australian population.

Scope and Application

The National Health Amendment Act (No. 2) 1993 applies to the provisions of the National Health Act 1953, specifically targeting Part VII, which deals with the pharmaceutical benefits safety net. The Act modifies the eligibility criteria and financial thresholds for concession and entitlement cards, as well as the charges and payments for pharmaceutical benefits under the Act. This legislation applies to individuals and families who are recipients of pharmaceutical benefits, and it operates within the Commonwealth jurisdiction of Australia. Notably, the Act excludes certain categories of pharmaceutical supplies from its purview, such as those taken under subsection 99(2A) and repatriation pharmaceutical benefits, as specified in the amendments. The Act also provides for periodic adjustments to specified amounts through subordinate instruments, ensuring the financial thresholds remain aligned with economic conditions. The Act commenced on 1 January 1994, and its amendments are subject to adjustments under section 99G, ensuring the amounts are periodically reviewed and updated.

Key Provisions

The National Health Amendment Act (No. 2) 1993 amends the National Health Act 1953, specifically targeting the pharmaceutical benefits safety net. This Act introduces modifications to the eligibility criteria for concession and entitlement cards, adjustments to the amounts paid, and changes to the charges for pharmaceutical benefits. These changes are outlined in sections 4, 5, and 6 of the Act. Section 4 modifies the eligibility criteria by setting a new threshold for concession and entitlement cards, replacing the previous $300 limit with a $400 limit or a combined amount that would not be less than $400, adjusted periodically. Section 5 further adjusts the amounts paid under certain conditions, and section 6 modifies the charges for pharmaceutical benefits, setting a $2.50 charge under specific circumstances. The Act imposes various obligations on the parties it governs. For instance, healthcare providers must adhere to the new eligibility criteria and charging structures outlined in sections 4, 5, and 6. The Department of Health, Housing, Local Government and Community Services is tasked with periodically adjusting the specified amounts and providing updated figures, as noted in sections 8 and 9. Patients must be informed of their new eligibility status and the applicable charges for pharmaceutical benefits. Additionally, the Act requires suppliers to disregard certain additional amounts charged under subsection 2A when determining previous charges for pharmaceutical benefits, as specified in section 6(2AB)(c). Breaches of the provisions set out in this Act can lead to various civil or criminal consequences. While the Act does not explicitly outline specific offences or penalties, penalties for breaches of the National Health Act 1953 could potentially apply. Under the National Health Act 1953, penalties for contravening the Act can include fines, imprisonment, or both, depending on the nature and severity of the breach. For instance, individuals or entities found to be charging incorrect amounts for pharmaceutical benefits could face fines, with the exact amount determined by the court. In more severe cases, imprisonment may be imposed, with penalties varying according to the specific offence and jurisdiction. It is important to note that the precise penalties are not detailed in the National Health Amendment Act (No. 2) 1993 but are governed by the overarching National Health Act 1953.

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Area of Law
Health Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Indexation
Reporting & Disclosure Obligations

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