National Health (Pharmaceutical Benefits) Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1996B02937 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

STATUTORY RULES 1987 No 279

ISSUED BY AUTHORITY OF THE

MINISTER FOR COMMUNITY SERVICES AND HEALTH

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (PHARMACEUTICAL BENEFITS) REGULATIONS (AMENDMENT)

Section 104 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 for carrying out or giving effect to the Act.

In particular, section 105 of the Act provides that the regulations may -

“(a) make provision for or in relation to the writing of prescriptions”.

Regulation 19 of the National Health (Pharmaceutical Benefits) Regulations sets out requirements for the writing of a duly-written prescription. Paragraph 19(a)(h) requires the prescribing medical practitioner (or participating dental practitioner, as the case may be), when prescribing a pharmaceutical benefit the supply of which is authorised only in circumstances specified in a declaration under ss85(2) or a determination under s85A of the Act to mark that prescription as a “Specified Purpose” or “S.P.” prescription.


Pre-printed NHS prescription forms are supplied to approved medical practitioners. When a “Special Purpose” pharmaceutical benefit has been prescribed, the medical practitioner is therefore required to clearly identify that prescription as a “Specified Purpose” prescription by adding the words “Specified Purpose” or an abbreviation thereof. This enables the pharmacist to claim reimbursement for the supply of such pharmaceutical benefits, which are subject to restrictions laid down in declarations by the Minister under sub-section 85(2) or determinations under section 85A of the Act.

The system in practice has fallen down because many medical practitioners fail to observe this requirement thereby causing problems to both the pharmacist and the Departments. Abolition of this requirement and the introduction of other administrative measures to monitor the supply of such “Specified Purpose” pharmaceutical benefits, was among one of the recommendations of a review carried out by the Efficiency Scrutiny Unit into the manner in which pharmaceutical benefits are paid pursuant to Part VII of the Act.

This amendment to Regulation 19 removes this requirement, currently contained in paragraph (1)(h) of the Regulations.

The amendment is to take effect from 1 December 1987.

Overview

The National Health Act 1953, enacted by the Australian Parliament, was designed to establish and oversee the national health system, including the provision of pharmaceutical benefits. A significant issue identified within the system was the administrative burden placed on both medical practitioners and pharmacists due to the requirement for prescriptions of certain pharmaceuticals, termed "Specified Purpose" prescriptions, to be clearly marked as such. This was intended to ensure that pharmacists could properly claim reimbursement for these restricted pharmaceuticals. However, a review by the Efficiency Scrutiny Unit revealed that many medical practitioners were not complying with this requirement, causing inefficiencies and complications for pharmacists and the relevant departments. To address this issue, Statutory Rules 1987 No 279, issued by the Minister for Community Services and Health, amended the National Health (Pharmaceutical Benefits) Regulations to remove the necessity for such marking on prescriptions. The amendment aimed to streamline the process and was set to take effect from 1 December 1987.

Scope and Application

The National Health (Pharmaceutical Benefits) Regulations (Amendment) Statutory Rules 1987 No 279, issued under the authority of the Minister for Community Services and Health, pertains to the administration of pharmaceutical benefits as outlined in the National Health Act 1953. The regulations specifically address the writing of prescriptions under section 105 of the Act, detailing requirements for prescriptions that are subject to specified purposes, such as those authorised under sections 85(2) or 85A of the Act. This regulation ensures that medical practitioners correctly identify such prescriptions, allowing pharmacists to claim reimbursement for restricted pharmaceutical benefits. However, due to widespread non-compliance among medical practitioners, the amendment to Regulation 19 has abolished the requirement to mark prescriptions as "Specified Purpose" prescriptions, effective from 1 December 1987. This change aims to streamline the process and address inefficiencies identified in a review by the Efficiency Scrutiny Unit. The amendment reflects a broader effort to enhance the administration of pharmaceutical benefits within the Australian healthcare system.

Key Provisions

The National Health (Pharmaceutical Benefits) Regulations (Amendment) primarily amends Regulation 19, which concerns the writing of prescriptions for pharmaceutical benefits. Specifically, section 19(a)(h) of the Regulations, which required medical practitioners to mark prescriptions for "Specified Purpose" pharmaceutical benefits with the notation "Specified Purpose" or "S.P.", has been removed. This change is intended to alleviate administrative difficulties experienced by both medical practitioners and pharmacists due to the non-compliance with this requirement. Medical practitioners, including those participating in the dental scheme, are required to ensure that their prescriptions comply with the regulations as amended. The key obligation under the amended Regulation 19 is the removal of the necessity to label prescriptions with "Specified Purpose" notations, thereby simplifying the process for both prescribing and dispensing of pharmaceutical benefits subject to specific conditions. This amendment streamlines the administrative burden and aims to enhance the efficiency of the system. While the Regulations do not explicitly outline criminal or civil penalties for non-compliance with the previous requirement to mark "Specified Purpose" prescriptions, the overarching National Health Act 1953 may contain provisions that could lead to penalties for non-compliance with regulations. In general, breaches of the Act or Regulations could result in administrative actions, fines, or other legal consequences as deemed appropriate by the relevant authorities. The precise penalties would depend on the specific nature and severity of the breach, as well as any additional legislative provisions that may apply. The removal of the "Specified Purpose" requirement from Regulation 19 aims to address inefficiencies identified in a review by the Efficiency Scrutiny Unit, which recommended changes to the administration of pharmaceutical benefits. By eliminating the need for additional notations on prescriptions, the amendment seeks to reduce administrative burdens and improve the efficiency of the pharmaceutical benefits system. The amendment will take effect from 1 December 1987, ensuring that all parties are aware of and can comply with the new requirements.

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