National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2020 (No. 1) (PB 64 of 2020)

Overview

The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2020 (No. 1) was enacted to address the specific needs of remote Aboriginal Health Services in accessing pharmaceutical benefits under the National Health Act 1953. This legislation amends the existing special arrangement to increase the fees for bulk handling and patient-specific medicine supply, effective from 1 July 2020. The amendment also updates references to the Seventh Community Pharmacy Agreement, replacing the Sixth. This legislative action was taken by the Minister under the authority granted by the National Health Act and aligns with the annual indexation provisions stipulated in the 2010-11 Federal Budget, ensuring that the fees are adjusted in accordance with the Wholesale Component of the Index (WCI9). The policy objective of this special arrangement is to facilitate equitable access to essential medicines for Aboriginal and Torres Strait Islander people in remote areas, thereby addressing geographical, cultural, and financial barriers.

Scope and Application

The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2020 (No. 1) amends the existing National Health (Remote Area Aboriginal Health Services Program) Special Arrangement made under the National Health Act 1953. This amendment pertains specifically to the adjustment of fees related to the supply of pharmaceutical benefits to approved Aboriginal Health Services in remote areas. The Act applies to approved pharmacists and approved hospital authorities who supply medicines under the Special Arrangement to these health services. Geographically, this arrangement applies nationally within Australia, as it falls under Commonwealth jurisdiction. The amendment increases the bulk handling fee from $3.08 to $3.12 and the patient specific medicine supply fee from $4.84 to $4.91, effective from 1 July 2020. The changes are indexed annually in accordance with the Wholesale Component Index (WCI9). Additionally, the Amendment Instrument updates references from the Sixth Community Pharmacy Agreement to the Seventh Community Pharmacy Agreement. The legislative instrument is compatible with human rights, specifically engaging with Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights by facilitating the progressive realisation of the right to the highest attainable standard of physical and mental health.

Key Provisions

The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2020 (No. 1) (Amendment Instrument) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017 (Special Arrangement) by increasing the fees associated with the supply of pharmaceutical benefits to remote Aboriginal Health Services. Specifically, the Amendment Instrument raises the bulk handling fee from $3.08 to $3.12, and the patient-specific medicine supply fee from $4.84 to $4.91, effective from 1 July 2020. These fee adjustments are indexed annually in accordance with the Wage Price Index (WPI). Additionally, the Amendment Instrument updates the reference from the Sixth Community Pharmacy Agreement 2015 to the Seventh Community Pharmacy Agreement 2020, reflecting the latest agreement between the Commonwealth and pharmacy service providers. The Special Arrangement, as amended, continues to facilitate the supply of pharmaceutical benefits to remote Aboriginal Health Services, ensuring that these services can access necessary medicines under the Pharmaceutical Benefits Scheme (PBS). Under the National Health Act 1953, the Amendment Instrument imposes several obligations on the parties involved in the supply of pharmaceutical benefits to remote Aboriginal Health Services. Approved pharmacists and hospital authorities must now charge the increased fees for bulk handling and patient-specific medicine supply. The Agreement, now referenced as the Seventh Community Pharmacy Agreement, governs the terms under which these services are provided. The Minister for Health is responsible for ensuring that these arrangements are implemented effectively, and that the increased fees are applied correctly from the commencement date of 1 July 2020. These changes are intended to maintain the integrity and efficiency of the supply chain for essential medicines to remote Aboriginal Health Services. Failure to comply with the requirements of the Amendment Instrument may result in legal consequences. While specific offences and penalties are not detailed in the Explanatory Statement, non-compliance with legislative instruments under the National Health Act 1953 could lead to administrative actions, including fines or other penalties as prescribed by the Act. The consequences for entities such as approved pharmacists and hospital authorities may include financial penalties, which could impact their operations and ability to continue providing services under the Special Arrangement. Ensuring adherence to the new fee structure and the terms of the Seventh Community Pharmacy Agreement is crucial for maintaining the provision of essential medicines to remote Aboriginal Health Services.