National Health Determination under paragraph 98C(1)(b) Amendment 2018 (No. 7) (PB 92 of 2018)

Administered by Department of Health, Disability and Ageing

Legislation au F2018L01485 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH DETERMINATION UNDER PARAGRAPH 98C(1)(b) AMENDMENT 2018 (No. 7)

PB 92 of 2018

 

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.  The 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

The amendments made by this Instrument reflect amendments to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012), which commence on the same day.  The National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012) is made under sections 84AF, 84AK, 85, 85A, 88 and 101 of the Act.

The amendments made by this Instrument include additions, deletions and changes to drugs and forms in Schedules 1 to 5 of the Principle Determination.

A provision by provision description of this Instrument is contained in the Attachment.

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, medical specialists and a pharmaceutical industry nominee.  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 November 2018.

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


ATTACHMENT

PROVISION-BY-PROVISION DESCRIPTION OF NATIONAL HEALTH DETERMINATION UNDER PARAGRAPH 98C(1)(b) AMENDMENT 2018 (No. 7)

Section 1 Name of Instrument

This section provides that the Instrument is the National Health Determination under paragraph 98C(1)(b) Amendment 2018 (No. 7) and may also be cited as PB 92 of 2018.

Section 2 Commencement

This section provides that the Instrument commences on 1 November 2018.

Section 3 Amendment of Determination under paragraph 98C(1)(b) of the National Health Act 1953 (PB 119 of 2008)

This section provides that Schedule 1 amends the Determination under paragraph 98C(1)(b) of the National Health Act 1953 (PB 119 of 2008).

Schedule 1 Amendments

The amendments in Schedule 1 include additions, deletions and changes to drugs and forms in Schedules 1 to 5 of the Principle Determination.  These changes are summarised below.

 

SUMMARY OF CHANGES

Forms added to Schedule 3 (Dangerous Drug Fee applies)

Hydromorphone

Oral liquid containing hydromorphone hydrochloride 1 mg per mL, 200 mL

Forms deleted from Schedule 4 (complete pack must be supplied)

Betaxolol

Eye drops, suspension, 2.5 mg (as hydrochloride) per mL, 5 mL

Forms added to Schedule 4 (complete pack must be supplied)

Dexamethasone

Intravitreal injection 700 micrograms


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 2018 (No. 7)

(PB 92 of 2018)

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 (PB 119 of 2008) (the Principal Determination) 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 Principal Determination to provide for changes to those conditions.  Schedule 1 to this Legislative Instrument provides for additions, deletions and changes to drugs and forms in Schedules 1 to 5 of the Principle Determination.

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.

 

 

 

Lisa La Rance

Assistant Secretary

Pricing and PBS Policy Branch

Technology Assessment and Access Division

Department of Health

 

Overview

The National Health Determination under paragraph 98C(1)(b) Amendment 2018 (No. 7) (PB 92 of 2018) amends 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, as outlined in the National Health Act 1953. Enacted by the Australian Parliament, this amendment responds to changes in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012), which took effect on the same day. The amendment adjusts the Principal Determination (PB 119 of 2008) to include modifications to drugs and forms across Schedules 1 to 5. The objective of these amendments is to ensure the Pharmaceutical Benefits Scheme (PBS) remains effective and aligned with contemporary health needs. The Department of Health consulted with the Pharmaceutical Benefits Advisory Committee (PBAC) in making these changes, ensuring that the recommendations are evidence-based and cater to the health requirements of Australians.

Scope and Application

The National Health Determination under paragraph 98C(1)(b) Amendment 2018 (No. 7) is a legislative instrument that amends the National Health Determination under paragraph 98C(1)(b) of the National Health Act 1953, which sets out 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. This amendment reflects changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, which includes additions, deletions, and changes to drugs and forms in Schedules 1 to 5 of the Principal Determination. The changes made by this Instrument are based on recommendations from the Pharmaceutical Benefits Advisory Committee, which consulted with interested pharmaceutical companies and recommended changes to the Minister. The Instrument applies to approved pharmacists and approved medical practitioners who supply pharmaceutical benefits, and the changes it makes affect the conditions under which payments will be made for those benefits. The scope of the Amendment is national, as it applies to the Pharmaceutical Benefits Scheme, which is a Commonwealth scheme. There are no stated exclusions, exemptions, or thresholds in the Amendment, and it does not extend or restrict application through subordinate instruments. This Amendment is compatible with human rights as it engages Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights 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 Pharmaceutical Benefits Scheme 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 ensures that decisions about subsidised access to medicines on the PBS are evidence-based. This Legislative Instrument is compatible with human rights because it advances the protection of human rights.

Key Provisions

The National Health Determination under paragraph 98C(1)(b) Amendment 2018 (No. 7) (PB 92 of 2018) amends the existing conditions set out in the Principal Determination (PB 119 of 2008) under the National Health Act 1953. This Determination updates the Pharmaceutical Benefits Scheme (PBS) by making modifications to the drugs and forms listed in Schedules 1 to 5. Specifically, it includes additions, deletions, and changes to these schedules, as detailed in Schedule 1 of the Amendment. For example, hydromorphone oral liquid has been added to Schedule 3, subject to a dangerous drug fee, while betaxolol eye drops have been removed from Schedule 4, which requires the complete pack to be supplied. Conversely, dexamethasone intravitreal injection has been added to Schedule 4. Under the National Health Act, the Minister has the authority to determine the conditions for Commonwealth payments regarding the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners (section 98C(1)(b)). The Principal Determination (PB 119 of 2008) provides the framework for these payments. The Amendment 2018 (No. 7) modifies these conditions by altering the listings in the schedules, affecting which drugs and forms are covered under the PBS and how they are supplied. This ensures that the scheme remains current with medical and pharmaceutical developments, maintaining the accessibility and affordability of essential medications for Australians. The Amendment imposes specific obligations on approved pharmacists and approved medical practitioners by updating the list of pharmaceutical benefits covered under the PBS. These professionals must adhere to the new conditions outlined in the amended schedules, which dictate how certain drugs and forms are to be supplied. For instance, they must now account for the addition of hydromorphone oral liquid to Schedule 3, requiring the application of a dangerous drug fee, and the removal of betaxolol eye drops from Schedule 4, meaning they no longer need to supply the complete pack. Such changes necessitate updates to their record-keeping and compliance processes to ensure adherence to the new requirements. Failure to comply with the conditions set out in the amended Principal Determination could result in legal repercussions. While the specific penalties for non-compliance are not detailed in the Amendment itself, violations of the National Health Act 1953 can generally lead to civil or criminal penalties, depending on the nature and severity of the breach. For example, knowingly providing pharmaceuticals in a manner contrary to the Act could result in fines or other penalties as prescribed by the relevant legislation. The exact penalties would be determined in accordance with the provisions of the National Health Act and any other applicable laws. In summary, the National Health Determination under paragraph 98C(1)(b) Amendment 2018 (No. 7) modifies the conditions for Commonwealth payments concerning the supply of pharmaceutical benefits by introducing changes to the drugs and forms listed in Schedules 1 to 5. These changes are designed to keep the PBS aligned with current medical practices and ensure continued access to essential medications. Approved pharmacists and approved medical practitioners must comply with these updated conditions, and failure to do so may result in legal consequences under the National Health Act 1953.

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