National Health (Indexation of concession or entitlement card fee) Amendment Determination 2018) (PB 116 of 2018)

Administered by Department of Health, Disability and Ageing

Legislation au F2018L01759 Not in force Legislative Instrument

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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

 

Overview

The National Health (Indexation of concession or entitlement card fee) Amendment Determination 2018 is an amendment made under subsection 84HA(1) of the National Health Act 1953, with the concurrence of the Pharmacy Guild of Australia as required by subsection 84HA(2). This amendment addresses the need to update the fee for issuing safety net concession cards and pharmaceutical benefits entitlement cards, ensuring that the fee reflects changes in the Consumer Price Index (CPI) and thereby maintains its purchasing power. The fee for these cards is increased from $9.91 to $10.10, effective from 1 January 2019. This legislative instrument ensures the continued financial viability of the Pharmaceutical Benefits Scheme (PBS) and the Repatriation Pharmaceutical Benefits Scheme (RPBS) by updating fees in line with inflation, while also maintaining the efficiency and effectiveness of these essential health services.

Scope and Application

The National Health (Indexation of concession or entitlement card fee) Amendment Determination 2018 is an instrument made under section 84HA of the National Health Act 1953, which aims to adjust the fee payable for issuing safety net concession cards or pharmaceutical benefits entitlement cards. This legislation applies to approved pharmacists, medical practitioners, and hospital authorities who issue these cards, thereby affecting the entities and professionals involved in administering the Pharmaceutical Benefits Scheme (PBS) and the Repatriation Pharmaceutical Benefits Scheme (RPBS). The amendment increases the fee from $9.91 to $10.10, effective from 1 January 2019. The decision to index the fee is based on the Consumer Price Index (CPI) for the previous two years. The amendment is limited to the fee adjustment and does not extend to other aspects of the PBS or RPBS schemes. This legislative instrument is designed to ensure the operational efficiency of the PBS by allowing for periodic fee adjustments that reflect inflation, thereby maintaining fair remuneration for those who administer the card issuance process.

Key Provisions

The main operative sections of the National Health (Indexation of Concession or Entitlement Card Fee) Amendment Determination 2018 (section 1 and section 3) establish the name of the instrument and its legal authority. Section 4 of the instrument references the Schedule, which specifies the amendments made to the National Health (Concession or Entitlement Card Fee) Determination 2012 (section 3 of Schedule 1). The key amendment is the increase of the fee for issuing a safety net concession card or pharmaceutical benefits entitlement card from $9.91 to $10.10, effective from 1 January 2019 (item 1 of Schedule 1). The Act imposes obligations on the parties involved in the issuing of safety net concession cards and pharmaceutical benefits entitlement cards. Under section 84HA(1) of the National Health Act 1953, an approved pharmacist, an approved medical practitioner, or an approved hospital authority who issues such cards is entitled to be paid a fee determined by the Minister. Section 84HA(2) of the Act stipulates that the Minister must not determine a fee unless the Pharmacy Guild of Australia has agreed in writing to the determination, which has been fulfilled by the Guild's agreement to this amendment (subsection 84HA(2)). The instrument also outlines potential consequences for non-compliance, although specific offences, penalties, or consequences are not detailed within the text. Generally, under the National Health Act 1953, failure to adhere to the provisions regarding fees and the issuance of concession or entitlement cards could result in civil or criminal penalties. These could include fines or other sanctions as prescribed by the Act or relevant regulations. However, the exact penalties for breaches are not specified within this particular instrument, and further reference to the National Health Act 1953 or related legislation would be necessary to determine the full extent of these consequences.

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