National Health Determination under paragraph 98C(1)(b) Amendment 2014 (No. 8) (No. PB 62 of 2014)

Administered by Department of Health, Disability and Ageing

Legislation au F2014L01125 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

National Health Determination under paragraph 98C(1)(b)
Amendment 2014 (No. 8)

PB 62 of 2014

 

Authority

Paragraph 98C(1)(b) of the National Health Act 1953 (the Act) provides that the Minister may determine the conditions subject to which payments will be made by the Commonwealth in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.  Determination under paragraph 98C(1)(b) of the National Health Act 1953 (PB 119 of 2008) (the Principal Determination) sets out the conditions subject to which these payments will be made.

Purpose

This Amendment Determination amends the Principal Determination to reflect the changes made by the National Health (Listing of Pharmaceutical Benefits) Amendment Instrument 2014 (No. 9), commencing on 1 September 2014.  Schedule 4 of the Principal Determination is amended by the removal of the drug omeprazole and clarithromycin and amoxycillin, which has been de-listed.

Variation and revocation

Unless there is an express power to revoke or vary PB 119 of 2008 cited in this Instrument and explanatory statement, subsection 33(3) of the Acts Interpretation Act 1901 is relied upon to revoke or vary PB 119 of 2008.

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.

Paragraph 98C(1)(b) of the Act provides that the Minister may, from time to time, determine the conditions subject to which payments will be made by the Commonwealth in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.

The determination under paragraph 98C(1)(b) of the Act sets out the conditions under which payments will be made in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.


 

 

Consultations

The Department consulted with the Pharmaceutical Benefits Advisory Committee (PBAC) during the regular process of its meetings to consider applications in order to recommend to the Minister which medicines should be subsidised through the Pharmaceutical Benefits Scheme.  The Committee is independent of Government and includes members from the following interests or professions: consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and medical specialists.  The Committee has received submissions and representations from interested pharmaceutical companies and has recommended the changes to the Minister who has determined the changes to the conditions under paragraph 98C(1)(b) which appear in this Determination. 

 

This Instrument commences on 1 September 2014.

This Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

National Health Determination under paragraph 98C(1)(b) Amendment 2014
(No. 8)
(PB 62 of 2014)

 

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

The determination under paragraph 98C(1)(b) of the National Health Act 1953 sets out the conditions under which payments will be made in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.

This legislative instrument amends the Determination under paragraph 98C(1)(b) of the National Health Act 1953 (PB 119 of 2008).  The amendments provide for changes to the conditions subject to which payments will be made by the Commonwealth in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.  This instrument removes one listed drug from Schedule 4 of the Principal Instrument.

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 PBS is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines.  The recommendatory role of the Pharmaceutical Benefits Advisory Committee (PBAC) ensures that decisions about subsidised access to medicines on the PBS are evidence-based.

Conclusion

This Legislative Instrument is compatible with human rights because it advances the protection of human rights.

 

Felicity McNeill

First Assistant Secretary

Pharmaceutical Benefits Division

Department of Health

 

Overview

The National Health Determination under paragraph 98C(1)(b) Amendment 2014 (No. 8) (PB 62 of 2014) is an amendment to the National Health Act 1953, which establishes the legislative basis for the Pharmaceutical Benefits Scheme (PBS) under which the Commonwealth provides access to a range of medicines for Australians. The amendment was introduced to update the conditions for payments made under the PBS by removing certain drugs from the list of subsidised pharmaceutical benefits. The objective of the amendment is to ensure that the scheme remains current and effective in meeting the health needs of the population, as determined by the Pharmaceutical Benefits Advisory Committee. The amendment was enacted by the Australian Parliament and is compatible with human rights, as it aligns with the International Covenant on Economic, Social and Cultural Rights by facilitating access to affordable medications. This determination is designed to reflect changes recommended by the independent Pharmaceutical Benefits Advisory Committee, which consults with various stakeholders including consumers, health professionals, and pharmaceutical companies. The amendment commenced on 1 September 2014 and is a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The National Health Determination under paragraph 98C(1)(b) Amendment 2014 (No. 8) applies to the conditions under which payments will be made by the Commonwealth in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. The scope of this legislation encompasses entities such as pharmacists and medical practitioners who are approved to supply pharmaceutical benefits under the Pharmaceutical Benefits Scheme (PBS). The PBS is a Commonwealth-funded program that aims to provide affordable access to a wide range of medicines for all Australians. The Amendment Determination reflects changes made by the National Health (Listing of Pharmaceutical Benefits) Amendment Instrument 2014 (No. 9) and removes the drug omeprazole and clarithromycin and amoxycillin from Schedule 4 of the Principal Determination, which had previously been listed. This Amendment Determination operates on a national level and is intended to ensure that the Pharmaceutical Benefits Scheme remains up-to-date and effective in providing Australians with access to necessary medications. The Amendment Determination does not explicitly outline any exclusions, exemptions, or thresholds, but rather adjusts the conditions and listings to maintain the efficacy of the PBS. The application of the Act can be extended or restricted through subordinate instruments, as noted in the explanatory statement.

Key Provisions

The primary sections of the National Health Determination under paragraph 98C(1)(b) Amendment 2014 (No. 8) (PB 62 of 2014) pertain to changes in the conditions governing payments made by the Commonwealth for pharmaceutical benefits supplied by approved pharmacists and approved medical practitioners. This Amendment Determination, effective from 1 September 2014, modifies the Principal Determination (PB 119 of 2008) under the National Health Act 1953 (the Act) to reflect updates in the Pharmaceutical Benefits Scheme (PBS). Specifically, it removes certain medications from Schedule 4 of the Principal Instrument, which lists the drugs eligible for Commonwealth payments. The obligations and requirements imposed by this Amendment Determination primarily revolve around the conditions that must be met for payments to be made by the Commonwealth for pharmaceutical benefits. These conditions include the necessity for pharmacists and medical practitioners to be approved under the Act, ensuring that the supply of pharmaceutical benefits adheres to the specified criteria. Furthermore, the determination underscores the role of the Pharmaceutical Benefits Advisory Committee (PBAC) in recommending changes to the Minister, who ultimately determines the conditions under which these payments will be made. The removal of certain drugs from the list of eligible pharmaceutical benefits signifies a shift in the scope of the PBS, impacting which medications will be subsidised by the Commonwealth. In terms of consequences for breach, the Act does not explicitly detail offences, penalties, or civil/criminal consequences within the Amendment Determination itself. However, any non-compliance with the conditions stipulated in the Principal Determination or this Amendment Determination could potentially lead to the withholding of payments or other administrative actions taken by the Commonwealth. The overarching legal framework of the National Health Act 1953 provides the basis for enforcement actions, though the specific penalties or consequences for breaches would depend on the nature and severity of the non-compliance. The determination's alignment with human rights, particularly the right to the highest attainable standard of physical and mental health as recognised in the International Covenant on Economic, Social and Cultural Rights (ICESCR), underscores the importance of adhering to these conditions to ensure the continued provision of affordable and timely access to essential medications. The Amendment Determination, by refining the conditions for Commonwealth payments, aims to maintain the integrity and effectiveness of the PBS. This legislative update reflects ongoing evaluations and recommendations by the PBAC, ensuring that the PBS remains responsive to public health needs and evidence-based practices. The compatibility with human rights, particularly the right to health, highlights the determination's role in progressively realising this fundamental human right through the provision of subsidised access to medicines. Overall, this Amendment Determination is a critical component in the ongoing management and evolution of the PBS within the Australian healthcare system.

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