EXPLANATORY STATEMENT
NATIONAL HEALTH ACT 1953
NATIONAL HEALTH (REMOTE AREA ABORIGINAL HEALTH SERVICES PROGRAM) SPECIAL ARRANGEMENT 2017
AMENDMENT INSTRUMENT 2018 (NO.1)
PB 62 of 2018
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 this legislative instrument, made under subsections 100(1) and 100(2) of the Act, is to amend the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017 (PB 107 of 2017) (the Special Arrangement). This Special Arrangement provides for the supply to remote Aboriginal Health Services of pharmaceutical benefits.
This instrument increases the bulk handling fee and the patient specific medicine supply fee (PSMSF) 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 2018, the bulk handling fee is increasing from $3.00 to $3.04 in accordance with (WCI9) and the patient specific medicine supply fee is increasing from $4.67 to $4.77. The patient specific medicine supply fee is the difference between the bulk handling fee and the applicable dispensing fee plus 29% of the Premium Free Dispensing Incentive (PFDI) which are both indexed annually in accordance with the Consumer Price Index (CPI).
Consultations
The amendment is minor and machinery in nature.
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 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 based on the CPI increases to the dispensing fee and PFDI fee.
The legislative instrument commences on 1 July 2018.
This Instrument is a legislative instrument for the purpose of the Legislation Act 2003.
Overview
The National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017 Amendment Instrument 2018 (No. 1) was enacted to amend the existing special arrangement under the National Health Act 1953 to update the fees associated with the supply of pharmaceutical benefits to remote Aboriginal Health Services. This instrument, which amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017, was introduced to ensure that the fees are indexed annually in accordance with the Consumer Price Index, reflecting the need for regular adjustments to maintain the purchasing power of these fees. The amendment was made under the authority of subsections 100(1) and 100(2) of the National Health Act 1953, enabling the Minister to make and vary special arrangements for the supply of pharmaceutical benefits. The policy objective is to provide a sustainable and equitable funding model for the Remote Area Aboriginal Health Services Program, ensuring the continued provision of essential healthcare services to remote communities.
Scope and Application
The National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017 Amendment Instrument 2018 (No.1) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017, which is part of the National Health Act 1953. This Act applies to approved pharmacists and approved hospital authorities who supply pharmaceutical benefits to remote Aboriginal Health Services under the Special Arrangement. The amendment affects the fees these entities are paid for bulk handling and patient-specific medicine supply. Specifically, it increases the bulk handling fee from $3.00 to $3.04 and the patient-specific medicine supply fee from $4.67 to $4.77, both effective from 1 July 2018. These fees are indexed annually in accordance with the Wholesale Price Index (WCI9) and the Consumer Price Index (CPI) respectively. The legislation applies nationally under the Commonwealth jurisdiction and the changes are directly tied to the Special Arrangement, which has been established to support remote Aboriginal Health Services. The amendment does not require consultation as it follows pre-existing budgetary provisions for annual indexation.
Key Provisions
The primary operative sections of the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017 Amendment Instrument 2018 (No. 1) (subsections 100(1) and 100(2) of the National Health Act 1953) provide the Minister with the authority to make special arrangements for the supply of pharmaceutical benefits, with the ability to vary or revoke these arrangements as necessary. This particular legislative instrument is an amendment to the existing Special Arrangement, which was established to facilitate the supply of pharmaceutical benefits to remote Aboriginal Health Services. The amendment increases the fees associated with the supply of these benefits, effective from 1 July 2018. Specifically, the bulk handling fee will increase from $3.00 to $3.04, and the patient specific medicine supply fee will rise from $4.67 to $4.77. These fees are indexed annually in accordance with the Consumer Price Index (CPI) and the Wholesale Component Index (WCI9).
The Act imposes several obligations and requirements on the parties involved. Approved pharmacists and approved hospital authorities must adhere to the updated fees set forth in the Special Arrangement. They must also ensure that any pharmaceutical benefits supplied to approved Aboriginal Health Services are done in accordance with the requirements of the amended Special Arrangement. Additionally, the Department of Human Services is required to implement an ongoing process for payment of the patient specific medicine supply fee to these approved entities, based on the CPI increases to the dispensing fee and Premium Free Dispensing Incentive (PFDI) fee.
The instrument does not explicitly outline offences, penalties, or consequences for breach; however, failure to comply with the terms of the Special Arrangement could potentially result in civil or administrative penalties under the National Health Act 1953. These penalties could include fines or other sanctions, although the exact nature and maximum penalties would depend on the specific circumstances of the breach and the provisions of the broader Act. It is essential for all parties to ensure adherence to the amended fees and requirements to avoid any potential repercussions.