National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2017 (No. 1) (PB 53 of 2017)

Overview

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2017 (No. 1) was enacted to adjust the handling fee payable to approved pharmacists or hospital authorities for the supply of pharmaceutical benefits to approved Aboriginal Health Services under the National Health Act 1953. The Act was introduced to address the need for an updated fee structure to account for inflation and maintain the viability of the Remote Aboriginal Health Services Program. The amendment, which increases the handling fee from $2.96 to $3.00 effective from 1 July 2017, is in line with the policy objective of ensuring the ongoing supply of pharmaceutical benefits to remote Aboriginal communities. The amendment was enacted by the Minister for Health under the authority provided by subsections 100(1) and 100(2) of the National Health Act 1953 and is subject to annual indexation as stipulated in the 2010-11 Federal Budget.

Scope and Application

The National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2017 (No.1) amends the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010, which pertains to the supply of pharmaceutical benefits to remote Aboriginal Health Services. This instrument applies to approved pharmacists and approved hospital authorities involved in the supply of pharmaceutical benefits under the Special Arrangement. It is made under the authority provided by the National Health Act 1953, which allows the Minister to make special arrangements for the supply of pharmaceutical benefits and to vary or revoke these arrangements as necessary. The amendment specifically concerns the increase in the handling fee for these services, effective from 1 July 2017, and mandates its annual indexation thereafter. The instrument does not extend beyond the scope of the special arrangement for remote Aboriginal Health Services, and no consultation was required due to the minor and administrative nature of the amendment.

Key Provisions

The main operative sections of the National Health (Remote Aboriginal Health Services Program) Special Arrangements Amendment Instrument 2017 (No. 1) (the Amendment Instrument) pertain to the increase in the handling fee payable to approved pharmacists or hospital authorities for the supply of pharmaceutical benefits to approved Aboriginal Health Services under the National Health (Remote Aboriginal Health Services Program) Special Arrangements Instrument 2010 (the Special Arrangement) (sections 1 and 2). Specifically, section 3 of the Amendment Instrument raises the handling fee from $2.96 to $3.00, effective from 1 July 2017, and mandates that this fee be indexed annually in accordance with the Wholesale Component Index (WCI) as outlined in the 2010-11 Federal Budget. The Amendment Instrument imposes obligations on approved pharmacists and hospital authorities who supply pharmaceutical benefits to approved Aboriginal Health Services under the Special Arrangement. They are required to charge the updated handling fee of $3.00 for each pharmaceutical benefit supplied, as per the new provisions. Additionally, these entities must ensure that the handling fee is indexed annually in line with the WCI, as stipulated in the 2010-11 Federal Budget. These obligations are designed to maintain the financial sustainability of the Remote Aboriginal Health Services Program and to ensure that the cost of supplying pharmaceutical benefits is adjusted in line with inflationary pressures. Failure to comply with the obligations set forth in the Amendment Instrument may result in civil or criminal consequences, although the specific nature of these consequences is not detailed in the Explanatory Statement. The primary legal mechanism for enforcing compliance is the authority granted to the Minister under subsection 100(1) of the National Health Act 1953, which allows for the variation or revocation of special arrangements, including the handling fee, if necessary. Given that the Amendment Instrument is a legislative instrument under the Legislation Act 2003, any breaches could also lead to penalties as prescribed by that Act. However, the precise penalties for non-compliance are not specified in the Explanatory Statement. The handling fee adjustment and its annual indexing are intended to provide a clear and legally binding framework for the financial transactions involved in the Remote Aboriginal Health Services Program.