EXPLANATORY STATEMENT
NATIONAL HEALTH ACT 1953
National Health (indexation of CONCESSION or ENTITLEMENT CARD FEE) AMENDMENT Determination 2018
PB 116 of 2018
Authority
This instrument is made under subsection 84HA(1) of the National Health Act 1953 (the Act). Subsection 84HA(2) of the Act provides that a determination under subsection (1) can only be made where the Pharmacy Guild of Australia (the Guild) has agreed in writing to the making of that determination. The Guild has agreed in writing to the making of this instrument.
In addition to the power to make this instrument under subsection 84HA(1) of the Act, subsection 33(3) of the Acts Interpretation Act 1901 (the Acts Interpretation Act) is relied on. Subsection 33(3) of the Acts Interpretation Act provides that the power to make a legislative instrument shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Purpose
This instrument amends the National Health (Concession or entitlement card fee) Determination 2012 (PB 102 of 2011) (the Principal Determination) to index the fee for issue of a safety net concession card or pharmaceutical benefits entitlement card (or an additional or replacement concession card or entitlement card). The fee is being increased from $9.91 to $10.10. This increase takes effect on 1 January 2019.
The fee has been indexed by the ratio of the Consumer Price Index (CPI) for the September quarter for each of the two previous years.
A provision-by-provision description of the instrument is contained in the Attachment.
Background
Part VII of the Act regulates the Pharmaceutical Benefits Scheme (PBS), which provides for the supply of listed drugs and medicinal preparations as pharmaceutical benefits. Eligible veterans are also entitled to access the Repatriation Pharmaceutical Benefits Scheme (RPBS), in accordance with the Veterans’ Entitlements Act 1986.
Subsection 84HA(1) of the Act provides that an approved pharmacist, an approved medical practitioner or an approved hospital authority who issues a safety net concession card or pharmaceutical benefits entitlement card (or an additional or replacement concession card or entitlement card) is entitled to be paid a fee determined by the Minister. Subsection 84HA(2) of the Act provides that the Minister must not determine a fee unless the Pharmacy Guild of Australia has agreed in writing to the determination.
The Principal Determination, made under subsection 84HA(1) of the Act, determines the amount payable for the issuing of each safety net concession card, each pharmaceutical benefits entitlement card, and each additional or replacement card in relation to any of these cards.
Division 1A of Part VII of the Act provides for a safety net scheme in relation to pharmaceutical benefits and repatriation pharmaceutical benefits (as defined in subsection 84(1) of the Act). The safety net scheme is designed to provide financial protection for those patients and their families who require a large number of PBS or RPBS medicines.
At the person’s request, a pharmacist records the supply of PBS and RPBS medicines to that person and the cost of the supply. When a person reaches a certain spending level on PBS or RPBS medicines (the safety net threshold), that person may be eligible for a safety net concession card or a pharmaceutical benefits entitlement card in respect of a relevant entitlement period. The issuing of such a card to a person enables that person to receive PBS or RPBS medicines at a reduced rate or free of charge for the remainder of the relevant entitlement period. The relevant entitlement period for the safety net scheme is a calendar year, that is, from 1 January to 31 December.
Consultation
The Pharmacy Guild of Australia has been consulted on this matter as required under subsection 84HA(2) of the Act, and has agreed in writing, to the amendment made by this Determination.
This Determination will commence on 1 January 2019.
This Determination is a legislative instrument for the purpose of the Legislation Act 2003.
Attachment
Details of the National Health (Indexation of concession or entitlement card fee) Amendment Determination 2018
Section 1 - Name of Instrument
This section provides that this instrument is the National Health (Indexation of concession or entitlement card fee) Amendment Determination 2018, and that it may also be cited as PB 116 of 2018.
Section 2 - Commencement
This section provides that this instrument commences on 1 January 2019.
Section 3 - Authority
This section provides that this instrument is made under section 84HA of the National Health Act 1953.
Section 4 - Schedule
This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned. It also provides that any other item in a Schedule to this Instrument has effect according to its terms.
The National Health (Concession or entitlement card fee) Determination 2012 (PB 102 of 2011) is specified in the Schedule.
Schedule 1 - Amendments
Item 1: Section 3
This item repeals and replaces section 3 of the Principal Determination. The amendment has been made to increase the fee for issuing cards from $9.91 to $10.10. The opportunity was also taken to modernise and clarify drafting of the section.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
National Health (Indexation of concession or entitlement card fee) Amendment Determination 2018
(PB 116 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
This legislative instrument amends the National Health (Concession or entitlement card fee) Determination 2012 (PB 102 of 2011) to increase to the fee payable to an approved pharmacist, an approved medical practitioner or an approved hospital authority for issuing a safety net concession card or pharmaceutical benefits entitlement card (or an additional or replacement concession card or entitlement card) from $9.91 to $10.10. The increase will take effect from 1 January 2019.
Human rights implications
This legislative instrument engages Articles 7 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. This legislative instrument also assists with the provision of favourable conditions of work to ensure remuneration for workers with fair wages.
The PBS is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines. Efficient operational arrangements for the PBS support effective administration of the scheme.
Conclusion
This legislative instrument is compatible with human rights because it advances the protection of human rights.
Natasha Ploenges
Acting Assistant Secretary
Pharmacy Branch
Technology Assessment and Access Division
Department of Health