National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2015 (No. 1) (PB 65 of 2015)

Administered by Department of Health, Disability and Ageing

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (REMOTE ABORIGINAL HEALTH SERVICES PROGRAM) SPECIAL ARRANGEMENTS AMENDMENT INSTRUMENT 2015 (NO. 1)

PB 65 of 2015

 

Authority

 

Subsection 100(1) of the National Health Act 1953 (the Act) enables the Minister to make special arrangements for the supply of pharmaceutical benefits. Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).

 

Subsection 100(3) of the Act provides that Part VII of the Act, and instruments made for the purposes of Part VII of the Act, have effect subject to a special arrangement made under subsection 100(1). 

 

Purpose

 

The purpose of the National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2015 (No. 1), (the Amendment Instrument), made under subsections 100(1) and 100(2) of the Act, is to amend the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 (PB 65 of 2010) (the Special Arrangement). The Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.

 

The Amendment 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 Special Arrangement.

 

On and from 1 July 2015, the handling fee is increasing from $2.88 to $2.92. The handling fee

is indexed annually in accordance with the (WCI9).

 

Consultations

 

The Amendment Instrument is minor and machinery in nature.

 

The Amendment Instrument commences on 1 July 2015.

 

The Amendment Instrument is a legislative instrument for the purpose of the Legislative Instruments Act 2003.

 


 

Overview

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2015 (No. 1), enacted to amend the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010, addresses the need to adjust the handling fee for the supply of pharmaceutical benefits to remote Aboriginal Health Services. This amendment was introduced by the Minister for Health under the authority provided by the National Health Act 1953, specifically sections 100(1) and 100(2), which empower the Minister to make and vary special arrangements for the supply of pharmaceutical benefits. The primary objective of this amendment is to increase the handling fee payable to approved pharmacists or hospital authorities from $2.88 to $2.92, effective from 1 July 2015, and to ensure that this fee is indexed annually in line with the Wage Price Index. This legislative instrument, as stated, is minor and primarily machinery in nature, designed to maintain the operational efficiency of the program while ensuring it remains financially sustainable.

Scope and Application

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2015 (No. 1) amends the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010, which concerns the supply of pharmaceutical benefits to remote Aboriginal Health Services. This legislation applies to approved pharmacists, approved hospital authorities, and approved Aboriginal Health Services that are involved in the supply of these benefits under the National Health Act 1953. The amendment specifically adjusts the handling fee payable to approved pharmacists or hospital authorities for supplying pharmaceutical benefits to approved Aboriginal Health Services, effective from 1 July 2015. The handling fee is set to increase from $2.88 to $2.92, with future adjustments to be indexed annually according to the Wage Price Index. This legislation operates under the authority of the Minister for Health, who has the power to make and vary special arrangements concerning the supply of pharmaceutical benefits under the National Health Act 1953. The amendment instrument, which is minor and of a machinery nature, commenced on 1 July 2015 and is recognised as a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2015 (No. 1) primarily modifies the handling fee for the supply of pharmaceutical benefits to remote Aboriginal Health Services under the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 (PB 65 of 2010). Section 100 of the National Health Act 1953 (the Act) empowers the Minister to establish special arrangements for the supply of pharmaceutical benefits, and this amendment increases the handling fee applicable to these services. Effective from 1 July 2015, the handling fee is set to increase from $2.88 to $2.92, reflecting the economic adjustments and operational costs incurred by the service providers. The handling fee is indexed annually in accordance with the relevant index (WCI9). Entities governed by this Act, specifically approved pharmacists and approved hospital authorities, must adhere to the updated handling fee structure when supplying pharmaceutical benefits to approved Aboriginal Health Services in accordance with the special arrangement. This includes updating their billing practices and ensuring compliance with the new fee rates, which are effective from the commencement date of 1 July 2015. The Act stipulates that these special arrangements, including the increased handling fee, apply subject to any variations or revocations made by the Minister under section 100(2) of the Act. Failure to comply with the provisions of the Amendment Instrument may result in civil or criminal consequences, depending on the severity and intent of the breach. While specific penalties are not detailed in the explanatory statement, penalties for non-compliance with the National Health Act 1953 can typically include fines and, in serious cases, imprisonment. The exact penalties would be determined by the court based on the nature and extent of the offence. The Amendment Instrument, being a legislative instrument under the Legislative Instruments Act 2003, carries with it the authority to enforce compliance and the potential for legal action against those who fail to adhere to its stipulations.

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