National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2003B00203 Regulations Not in force Legislative Instrument

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National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1) 2003 No. 193

EXPLANATORY STATEMENT

STATUTORY RULES 2003 No. 193

Issued by the authority of the Minister for Health and Ageing

National Health Act 1953

National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1)

Subsection 140(1) of the National Health Act 1953 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Paragraph 85A(2)(a) of the Act enables the Minister to determine the maximum quantity or number of units of a pharmaceutical benefit that may, in one prescription, be directed to be supplied on one occasion, either for all purposes or for particular purposes; and paragraph 85A(2)(b) of the Act enables the Minister to determine the maximum number of occasions on which the supply of a pharmaceutical benefit may, in one prescription, be directed to be repeated, either for all purposes or for particular purposes.

However, subsection 85A(3) of the Act provides that the regulations may make provision authorising the variation of the application, in relation to persons included in a class of persons, of a determination under paragraph 85A(2)(a) or (b) of the Act.

Under regulation 13 of the National Health (Pharmaceutical Benefits) Regulations 1960, a medical practitioner may apply for authorisation of a prescription for the supply of more than the maximum quantity and/or for more than the maximum number of repeats. This application may currently be made either in writing or by telephone.

Authorisation of these prescriptions is made in writing in the case of written applications, and orally at the time of the telephone call in the case of applications by telephone. Under paragraph 3E(f) of the Health Insurance Commission Regulations 1975, the exercise of powers of the Minister under regulation 13 is a function of the Health Insurance Commission (HIC).

The purpose of the Regulations is to provide a further method for the submission and authorisation of an application to exceed the maximum quantity and/or maximum number of repeats, namely, electronic communication between the medical practitioner and the HIC.

A medical practitioner who wishes to use this method would make the application by means of an electronic communication of a kind approved in writing by the Secretary. This would be done by logging on to the HIC's web browser and submitting the application by entering the prescription details in the format provided on the relevant page of the web browser.

Where a medical practitioner receives an electronic reply giving notice of authorisation of an application, the reply from the HIC's computer would include the authorisation number that has been allotted to the prescription. The medical practitioner would be required to mark the authorisation number on the prescription and retain a copy of the prescription for one year, in the same way as currently required for telephone authorisations.

The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.

Details of the Regulations are in the Attachment.

The Regulations commence on 1 August 2003.

ATTACHMENT

Regulation 1 of the amending regulations provides that the name of the amending regulations is the National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1).

Regulation 2 of the amending regulations provides that the amending regulations commence on 1 August 2003.

Regulation 3 of the amending regulations provides that the National Health (Pharmaceutical Benefits) Regulations 1960 be amended as set out in Schedule 1.

Item 1 of Schedule 1 amends paragraph 13(2)(b) as a consequence of item 2, which allows for electronic applications for authorisation of prescriptions for more than the maximum quantities or repeats.

Item 2 of Schedule 1 amends paragraph 13(3)(b) to provide that a medical practitioner may, as a further alternative to the existing methods of written or telephone application, submit an application for authorisation of a prescription for more than the maximum quantity or number of repeats by means of an electronic communication of a kind approved in writing by the Secretary.

Item 3 of Schedule 1 inserts paragraph 13(5)(c) to provide that, where the Minister gives authorisation of a prescription for more than the maximum quantity or number of repeats that was submitted by electronic communication, the authorisation will be given by electronic communication. Item 3 also amends paragraph 13(5)(b) to replace the word "verbally" with the more accurate term "orally" in respect of the method of authorisation of telephone applications.

Item 4 of Schedule 1 amends subregulation 13(6), as a consequence of proposed item 3, which enables authorisations to be given by the Minister by electronic communication under proposed paragraph 13(5)(c).

Item 5 of Schedule 1 amends paragraph 13(6)(a) to provide that the Minister must, when giving an authorisation by electronic communication, advise the medical practitioner of the authorisation number by electronic communication. The medical practitioner must, under paragraph 13(6)(b), mark this number on the prescription and retain a copy of the prescription for one year from the date of authorisation. The inclusion of the authorisation number on the prescription enables a pharmacist who receives the prescription for dispensing to recognise that the quantity or number of repeats included in the prescription has been duly authorised.

Item 6 of Schedule 1 inserts new subregulation 13(7) to define "electronic communication" for the purpose of regulation 13 as having the same meaning given by subsection 5(1) of the Electronic Transactions Act 1999, namely:

"(a)       a communication of information in the form of data, text or images by means of guided and/or unguided electromagnetic energy; or

(b)       a communication of information in the form of speech by means of guided and/or unguided electromagnetic energy, where the speech is processed at its destination by an automated voice recognition system."

 

Overview

The National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1) were enacted to introduce an additional method for the submission and authorisation of applications for prescriptions exceeding the maximum quantity or number of repeats, complementing the existing methods of written or telephone application. This amendment responds to the need for more efficient and modern communication methods in the healthcare sector, particularly in the context of pharmaceutical benefits under the National Health Act 1953. The regulations were issued by the authority of the Minister for Health and Ageing and aim to facilitate the transition to electronic communication between medical practitioners and the Health Insurance Commission (HIC). The primary policy objective is to streamline the authorisation process by enabling medical practitioners to submit applications electronically, thereby enhancing the efficiency and responsiveness of the healthcare system. The National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1) amend the National Health (Pharmaceutical Benefits) Regulations 1960 to incorporate electronic communication as an approved method for applications, requiring the medical practitioner to log onto the HIC's web browser and submit the application in the prescribed format. Upon authorisation, the HIC must provide the authorisation number via electronic communication, which the medical practitioner must then mark on the prescription and retain a copy of for one year. This approach aims to reduce administrative burden, improve record-keeping, and ensure that pharmacists can readily verify the authorisation of prescriptions.

Scope and Application

The National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1) primarily apply to medical practitioners and the Health Insurance Commission (HIC) within the framework of the National Health Act 1953. The regulations introduce an electronic application process for medical practitioners seeking authorisation to exceed the maximum quantity or number of repeats for pharmaceutical benefits prescribed in a single prescription. This amendment extends the existing methods of written or telephone application by incorporating an electronic communication method for submitting and authorising such applications. The geographic reach of these regulations is nationwide, applying uniformly across Australia. There are no stated exclusions or exemptions within these regulations; however, the scope of application is limited to prescriptions that seek to exceed the maximum quantity or number of repeats for pharmaceutical benefits under the Act. The application of the regulations may be further extended or restricted through subordinate instruments, but the primary focus remains on enhancing the efficiency of the application and authorisation process for medical practitioners.

Key Provisions

The National Health (Pharmaceutical Benefits) Amendment Regulations 2003 (No. 1) (Regulations) primarily focus on the amendment of the National Health (Pharmaceutical Benefits) Regulations 1960 (1960 Regulations) to introduce a new method for medical practitioners to apply for and receive authorisation of prescriptions that exceed the maximum quantity or number of repeats allowed. Under regulation 2, these Regulations commence on 1 August 2003. Regulation 3 mandates the amendment of the 1960 Regulations as set out in Schedule 1. Specifically, Schedule 1 introduces electronic communication as an additional method for submitting and receiving authorisations for prescriptions exceeding the maximum quantities or repeats, complementing the existing methods of written or telephone applications. The Regulations impose certain obligations on medical practitioners and the Health Insurance Commission (HIC). Medical practitioners who wish to use electronic communication to submit an application for authorisation of a prescription exceeding the maximum quantities or repeats must do so by means of an approved electronic communication, as specified in writing by the Secretary. They must log on to the HIC's web browser, enter the prescription details in the prescribed format, and submit the application accordingly. Upon receiving an electronic reply notifying the authorisation of an application, the medical practitioner must mark the authorisation number provided in the reply on the prescription. Additionally, they must retain a copy of the prescription for one year, mirroring the current requirement for telephone authorisations. The HIC, on the other hand, is obligated to respond to electronic applications for authorisations within the regulatory framework. When authorising a prescription submitted by electronic communication, the Minister must provide the authorisation number to the medical practitioner via electronic communication. The HIC must ensure that this authorisation number is included on the prescription to enable pharmacists to verify that the quantity or number of repeats in the prescription has been duly authorised. Failure to comply with the provisions of the Regulations may result in legal consequences, although the specific offences, penalties, or consequences for breach are not explicitly stated in the provided text. However, it is reasonable to infer that non-compliance with the Regulations, particularly concerning the authorisation of prescriptions, could lead to civil or criminal penalties, as is common with regulatory breaches. The exact penalties would depend on the nature and severity of the breach, as well as other relevant laws and regulations. The maximum penalties, if applicable, would be determined based on these factors and any specific provisions within the National Health Act 1953 or other related legislation.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.