National Health Determination under paragraph 98C(1)(b) Amendment 2015 (No. 6) (PB 56 of 2015)

Administered by Department of Health, Disability and Ageing

Legislation au F2015L01065 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

National Health Determination under paragraph 98C(1)(b)
Amendment 2015 (No. 6)

PB 56 of 2015

 

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 2015 (No. 6), commencing on 1 July 2015.  Schedule 4 of the Principal Determination is amended by the deletion of glucose indicator—blood in the form test strips, 100 (Accu-Chek Advantage/Sensor Comfort).  

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 July 2015.

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 2015
(No. 6)
(PB 56 of 2015)

 

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 form of a 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 2015 (No. 6) (PB 56 of 2015) was enacted to align the conditions for Commonwealth payments concerning the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners with the changes introduced by the National Health (Listing of Pharmaceutical Benefits) Amendment Instrument 2015 (No. 6). This amendment was made under the authority of paragraph 98C(1)(b) of the National Health Act 1953, which empowers the Minister to determine such conditions. The policy objective behind these amendments is to ensure that the Pharmaceutical Benefits Scheme (PBS) remains effective and aligned with current medical needs and evidence-based practices, facilitated by recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC). The PBAC, an independent committee comprising members from various healthcare sectors, provides recommendations to the Minister, who then determines the necessary changes. This legislative instrument is compatible with human rights as it contributes to the progressive realisation of the right to the highest attainable standard of physical and mental health by providing subsidised access to medicines through the PBS.

Scope and Application

The National Health (Listing of Pharmaceutical Benefits) Amendment Instrument 2015 (No. 6) amends the National Health Determination under paragraph 98C(1)(b) of the National Health Act 1953, which governs the conditions for Commonwealth payments regarding the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. This Amendment Determination reflects changes made to the Principal Determination, which sets out the conditions for such payments. Specifically, the Amendment Determination removes glucose indicator—blood in the form test strips, 100 (Accu-Chek Advantage/Sensor Comfort) from Schedule 4 of the Principal Determination. The changes take effect from 1 July 2015 and are aligned with the objectives of the Pharmaceutical Benefits Scheme (PBS) to provide affordable access to a wide range of medicines for Australians. The determination applies nationally across Australia, impacting approved pharmacists and medical practitioners who supply pharmaceutical benefits. This legislative instrument is compatible with human rights, particularly Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights, by facilitating access to subsidised medicines, thereby supporting the highest attainable standard of physical and mental health.

Key Provisions

The main operative sections of this legislative instrument (paragraph 98C(1)(b) of the National Health Act 1953) pertain to the conditions under which payments will be made by the Commonwealth for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. This amendment determination (F2015L01065) modifies the Principal Determination (PB 119 of 2008) to reflect changes made by the National Health (Listing of Pharmaceutical Benefits) Amendment Instrument 2015 (No. 6), which commenced on 1 July 2015. Specifically, the amendment involves the removal of glucose indicator—blood in the form test strips, 100 (Accu-Chek Advantage/Sensor Comfort) from Schedule 4 of the Principal Determination. The Act imposes several obligations and requirements on the parties and entities it governs. Firstly, it mandates that payments for pharmaceutical benefits will only be made under the conditions specified in the determination. Approved pharmacists and medical practitioners must comply with these conditions to receive Commonwealth payments. This includes adhering to the criteria for the supply of pharmaceutical benefits, which are outlined in Schedule 4 of the Principal Determination. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a crucial role in recommending changes to these conditions based on evidence and expert opinions, ensuring that decisions about which medicines are subsidised are grounded in thorough analysis and stakeholder input. Failure to comply with the conditions specified in the Act can result in various consequences. There are no explicit offences or penalties mentioned in the text, but non-compliance with the stipulated conditions for receiving payments could lead to the withholding of payments by the Commonwealth. This financial disincentive underscores the importance of adhering to the requirements set forth in the Act. Additionally, entities involved in the supply of pharmaceutical benefits are expected to maintain records and documentation that attest to their compliance with the conditions, which could be subject to review or audit by the relevant authorities. This legislative instrument is compatible with human rights, as it supports the progressive realisation of the right to the highest attainable standard of physical and mental health, as recognised in Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR). By providing subsidised access to medicines through the Pharmaceutical Benefits Scheme (PBS), the Act contributes to the advancement of this human right. The involvement of the Pharmaceutical Benefits Advisory Committee (PBAC) ensures that decisions about which medicines are subsidised are evidence-based, further protecting and promoting the right to health.

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