EXPLANATORY STATEMENT
National Health Act 1953
National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1)
PB 70 of 2021
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 National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1) (the Amendment Instrument) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement (PB 107 of 2017) (the Special Arrangement). The Amendment Instrument increases the bulk handling fee and the patient specific medicine supply 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 2021, the bulk handling fee is increasing from $3.12 to $3.15 and the patient specific medicine supply fee is increasing from $4.91 to $4.96 in accordance with (WCI9).
The Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.
Consultation
No consultation was required as the 2010-11 Federal Budget provided for the annual indexation of the Remote Area Aboriginal Health Services Program handling fee and is indexed annually in accordance with the WCI9. As part of the 2017-2018 Budget process Government agreed for Services Australia (formerly the Department of Human Services) to implement an ongoing process for payment to approved pharmacists and approved hospital authorities of the patient specific medicine supply fee and is indexed annually in accordance with the WCI9. Therefore, the Amendment Instrument is minor and machinery in nature.
Commencement
The legislative instrument commences on 1 July 2021.
This Instrument is a legislative instrument for the purpose of the Legislation Act 2003.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1)
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1) (the Amendment Instrument) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement (PB 107 of 2017) (the Special Arrangement). The Amendment Instrument increases the bulk handling fee and the patient specific medicine supply 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 2021 the bulk handling fee is increasing from $3.12 to $3.15 and the patient specific medicine supply fee is increasing from $4.91 to $4.96 in accordance with (WCI9).
The Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.
Human rights implications
The Amendment Instrument engages Article 12 of the International Covenant on Economic, Social and Cultural Rights by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.
The Pharmaceutical Benefits Scheme (PBS) is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines. The Special Arrangement ensures more ready and equitable access to PBS medicines for Aboriginal and Torres Strait Islander people through the section 100 arrangement under the National Health Act 1953 (the supply of PBS Medicines to Remote Area Aboriginal Health Services (RAAHS) Program). The RAAHS Program addresses three identified barriers that Aboriginal and Torres Strait Islander people living in remote communities experience in accessing essential medicines, being geographical, cultural and financial.
Conclusion
This Legislative Instrument is compatible with human rights because it advances the protection of human rights.
Overview
The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1) is an amendment to the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017. Enacted under the authority of Subsection 100(1) of the National Health Act 1953, this legislative instrument addresses the need to update the fees associated with the supply of pharmaceutical benefits to remote Aboriginal Health Services. The increase in the bulk handling fee and the patient specific medicine supply fee aims to align with the Wholesale Cost Index (WCI9) and ensure that the services provided remain adequately compensated. The amendment was introduced by the Minister for Health and does not require consultation as it follows the established policy of annual indexation of fees, as outlined in the 2010-11 Federal Budget and subsequent budget processes. The legislative instrument is set to commence on 1 July 2021, reflecting the policy objective of providing equitable access to essential medicines for Aboriginal and Torres Strait Islander peoples in remote areas.
Scope and Application
The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1) amends the existing special arrangement under the National Health Act 1953 to increase the fees for the supply of pharmaceutical benefits to approved Aboriginal Health Services in remote areas. Specifically, the Amendment Instrument raises the bulk handling fee from $3.12 to $3.15 and the patient specific medicine supply fee from $4.91 to $4.96, effective from 1 July 2021. This special arrangement applies to approved pharmacists and hospital authorities who supply medicines to approved Aboriginal Health Services in remote areas, facilitating the equitable access to subsidised medicines for Aboriginal and Torres Strait Islander people in these regions. The Amendment Instrument extends the application of the special arrangement by adjusting the fees in line with the Wholesale Price Index, and it is applicable nationally, given its foundation under the Commonwealth's National Health Act 1953. The changes do not introduce any new exclusions or exemptions beyond those already specified in the original Special Arrangement.
Key Provisions
The National Health (Remote Area Aboriginal Health Services Program) Amendment Special Arrangement 2021 (No. 1) (Amendment Instrument) amends the existing National Health (Remote Area Aboriginal Health Services Program) Special Arrangement (Special Arrangement) by modifying two key fees associated with the program. Specifically, the bulk handling fee is increased from $3.12 to $3.15, and the patient specific medicine supply fee is increased from $4.91 to $4.96, effective from 1 July 2021. These adjustments are in accordance with the Wholesale Component Index (WCI9). The Special Arrangement itself is a mechanism under the National Health Act 1953 that facilitates the supply of pharmaceutical benefits to approved Aboriginal Health Services in remote areas.
The Amendment Instrument imposes certain obligations on parties involved in the Remote Area Aboriginal Health Services Program. Approved pharmacists and approved hospital authorities must now charge the updated fees for bulk handling and patient specific medicine supplies as outlined in the Amendment Instrument. These fees are integral to the operation of the Special Arrangement and are payable to these entities for their services in supplying pharmaceutical benefits to remote Aboriginal Health Services. The Special Arrangement continues to ensure that these services are provided efficiently and in accordance with the updated fee structure.
Under the National Health Act 1953, breaches of the provisions within the Special Arrangement can lead to civil or criminal consequences, although specific penalties are not detailed in the Amendment Instrument. The Act allows the Minister to vary or revoke the Special Arrangement if necessary, which underscores the regulatory oversight over the program. Parties failing to comply with the updated fee structure and other requirements could face potential actions under the Act, including financial penalties or other enforcement measures as deemed appropriate by the Minister.
The Amendment Instrument is compatible with human rights as it aids in the progressive realisation of the right to the highest attainable standard of physical and mental health, as recognised under Article 12 of the International Covenant on Economic, Social and Cultural Rights. By ensuring more equitable access to essential medicines through the Pharmaceutical Benefits Scheme (PBS) and the RAAHS Program, the Amendment Instrument supports the broader goal of improving health outcomes for Aboriginal and Torres Strait Islander people in remote areas. The human rights implications of the Amendment Instrument are considered to be positive, as it contributes to the advancement of health-related human rights for these communities.