EXPLANATORY STATEMENT
NATIONAL HEALTH (REMOTE ABORIGINAL HEALTH SERVICES PROGRAM)
SPECIAL ARRANGEMENTS AMENDMENT INSTRUMENT 2011 (NO. 1)
INSTRUMENT NUMBER PB 48 of 2011
Purpose
This instrument amends the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 (PB 65 of 2010) (the Principal Instrument).
This instrument increases the handling fee that is payable to an approved pharmacist or an approved hospital authority in respect of the supply of a pharmaceutical benefit to an approved Aboriginal Health Service in accordance with the Principal Instrument.
From 1 July 2011, the handling fee is increasing from $2.74 to $2.79. The handling fee is indexed annually (WCI9) with the increase provided through the Fifth Community Pharmacy Agreement.
The Principal Instrument is a special arrangement made under subsection 100(1) of the National Health Act 1953 (the Act). For subsection 100(1) of the Act, the Principal Instrument makes a special arrangement for the supply to remote Aboriginal Health Services (AHS) of Pharmaceutical Benefits Scheme (PBS) medicines contained in Section 2 of the Schedule of Pharmaceutical Benefits, in force at the time of supply, excluding the following:
- Pharmaceutical benefit items supplied to medical practitioners as emergency drug supplies, as described in section 93 of the Act;
- Pharmaceutical benefit items for which special arrangements are in force under paragraph 100(1)(b) of the Act; and
- Pharmaceutical benefits items that are Schedule 8 drugs, as defined by the relevant State or Territory drugs and poisons legislation.
These Arrangements constitute a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Section 100 special arrangements and Part VII of the Act
Subsection 100(1) enables the Minister to make special arrangements for, or in relation to, providing that an adequate supply of pharmaceutical benefits will be available to persons:
(a) who are living in isolated areas: or
(b) who are receiving treatment in circumstances in which generally available pharmaceutical benefits are inadequate for that treatment; or
(c) if the pharmaceutical benefits covered by the arrangements can be more conveniently or efficiently supplied under the arrangements.
Subsection 100(3) provides that Part VII of the Act, and regulations and other legislative instruments made for the purposes of Part VII have effect subject to a special arrangement made under subsection 100(1).
Subsection 100(2) provides that the Minister may vary or revoke a special arrangement made under subsection (1).
Consultations
These Arrangements have been made following the agreement of the Pharmacy Guild of Australia, as reflected in the Fifth Community Pharmacy Agreement. No further consultation was required because the amendment is minor and machinery in nature.
Medicare Australia (MA) has also been consulted to provide advice on the program management aspects for these arrangements because ordering and payment for the supply of PBS medicines under these Arrangements is managed by MA.
Overview
The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2011 (No. 1) was enacted to address a need for minor adjustments in the handling fees for the supply of pharmaceutical benefits to approved Aboriginal Health Services under the National Health Act 1953. This amendment responds to the Fifth Community Pharmacy Agreement, increasing the handling fee from $2.74 to $2.79 effective from 1 July 2011, and incorporates an annual indexation mechanism. This legislative instrument, made under the authority of subsection 100(1) of the Act, aims to ensure that an adequate supply of pharmaceutical benefits remains available to remote Aboriginal Health Services, addressing any gaps in the supply of necessary medications in isolated areas or under specific treatment circumstances. The amendment was developed following consultations with the Pharmacy Guild of Australia and Medicare Australia to ensure the feasibility and effectiveness of the fee adjustments within the existing program framework.
Scope and Application
This instrument amends the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 to adjust the handling fee for pharmaceutical benefits supplied to approved Aboriginal Health Services. The amendments apply to approved pharmacists or approved hospital authorities that supply pharmaceutical benefits to remote Aboriginal Health Services as defined under the National Health Act 1953. This includes remote areas and circumstances where generally available pharmaceutical benefits are inadequate, in line with subsection 100(1) of the Act. The changes are designed to enhance the supply of Pharmaceutical Benefits Scheme (PBS) medicines, excluding certain items such as emergency drug supplies, items with existing special arrangements, and Schedule 8 drugs. These arrangements apply nationally, with the handling fee increasing from $2.74 to $2.79 effective from 1 July 2011, and are subject to annual indexing as outlined in the Fifth Community Pharmacy Agreement. The application of this Act is subject to any special arrangements made under subsection 100(1), which can be varied or revoked by the Minister as per subsection 100(2).
Key Provisions
The key operative sections of this instrument (PB 48 of 2011) relate to the adjustment of the handling fee for pharmaceutical benefits provided to remote Aboriginal Health Services (AHS) under the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 (PB 65 of 2010). Specifically, Section 1 of this amendment increases the handling fee payable to approved pharmacists or hospital authorities from $2.74 to $2.79, effective from 1 July 2011. This increase is indexed annually, with adjustments provided through the Fifth Community Pharmacy Agreement (WCI9). This special arrangement is made under subsection 100(1) of the National Health Act 1953 (the Act), which allows for special provisions to ensure an adequate supply of pharmaceutical benefits to remote AHS.
The obligations and requirements imposed by this instrument on the parties involved include the obligation for approved pharmacists or hospital authorities to charge the new handling fee rate of $2.79 for each supply of a pharmaceutical benefit to a remote AHS under the special arrangement. This fee change is intended to ensure that the supply of pharmaceutical benefits to remote AHS is facilitated smoothly, reflecting the costs involved in these arrangements as outlined in the Fifth Community Pharmacy Agreement. Additionally, Medicare Australia, which manages the ordering and payment aspects for the supply of PBS medicines under these arrangements, has been consulted to ensure that program management aspects are appropriately addressed.
There are no specific offences, penalties, or civil/criminal consequences outlined in this instrument for breach of the new handling fee provisions. However, the general legislative framework under the National Health Act 1953 and related regulations would apply if there were any non-compliance or administrative breaches related to the special arrangements for pharmaceutical benefits. These might include administrative penalties or legal actions as per the broader health legislation. The primary focus of this instrument is to ensure that the financial arrangements for the supply of pharmaceutical benefits to remote AHS are updated and indexed appropriately, reflecting the agreed terms in the Fifth Community Pharmacy Agreement.