EXPLANATORY STATEMENT
NATIONAL HEALTH ACT 1953
NATIONAL HEALTH (REMOTE AREA ABORIGINAL HEALTH SERVICES PROGRAM) SPECIAL ARRANGEMENT
AMENDMENT INSTRUMENT 2019 (NO.1)
PB 52 of 2019
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 (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 2019, the bulk handling fee is increasing from $3.04 to $3.08 in accordance with (WCI9) and the patient specific medicine supply fee is increasing from $4.77 to $4.84. 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 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 based on the CPI increases to the dispensing fee and PFDI fee.
The legislative instrument commences on 1 July 2019.
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 Amendment Instrument 2019 (No. 1) was enacted to amend the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement under the National Health Act 1953. This instrument addresses the need to update the fees for the supply of pharmaceutical benefits to remote Aboriginal Health Services, ensuring they remain in line with inflation and operational costs. Enacted by the Minister for Health under the authority provided by subsection 100(1) and (2) of the National Health Act, the policy objective is to facilitate the ongoing supply of essential pharmaceutical services to remote areas by adjusting fees in accordance with the Consumer Price Index. This adjustment aims to maintain the financial viability of the program while supporting the health needs of remote Aboriginal communities.
This amendment, which involves increasing the bulk handling fee from $3.04 to $3.08 and the patient specific medicine supply fee from $4.77 to $4.84, reflects the minor yet crucial adjustments necessary to sustain the program's effectiveness. Given the nature of the changes and the established indexing process, no consultation was required, as the amendments align with previously communicated budget commitments and ongoing administrative practices. The legislative instrument took effect on 1 July 2019, ensuring that the updated fees are applied from that date.
Scope and Application
The National Health (Remote Area Aboriginal Health Services Program) Special Arrangement Amendment Instrument 2019 (No.1) amends the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement, which was initially established under the National Health Act 1953. This Act applies to the supply of pharmaceutical benefits to remote Aboriginal Health Services, with the amendment specifically adjusting the fees associated with the bulk handling and patient-specific medicine supply. These fees are payable to approved pharmacists or approved hospital authorities when supplying pharmaceutical benefits to approved Aboriginal Health Services under the Special Arrangement. The amendment applies on a national level, as it is part of the overarching National Health Act 1953 which operates under the Commonwealth jurisdiction. The changes, which are minor and administrative in nature, are designed to align the fees with the Consumer Price Index (CPI) to ensure ongoing financial adjustments that reflect the economic conditions. The amendment does not exclude any specific entities or conduct, but rather applies universally to all services and transactions covered under the Special Arrangement. Subordinate instruments or further regulations may extend or restrict the application of these fees as necessary.
Key Provisions
The key provisions of the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement Amendment Instrument 2019 (No. 1) amend the existing arrangement under the National Health Act 1953 for the supply of pharmaceutical benefits to remote Aboriginal Health Services. Specifically, the amendments adjust the fees payable to approved pharmacists or hospital authorities for the bulk handling and patient-specific medicine supply (section 100(1) and (2)). Effective from 1 July 2019, the bulk handling fee increases from $3.04 to $3.08, and the patient-specific medicine supply fee rises from $4.77 to $4.84 (section 100(3)).
The Act imposes several obligations and requirements on parties involved in the supply of pharmaceutical benefits under this arrangement. Approved pharmacists or hospital authorities must comply with the updated fee structure for bulk handling and patient-specific medicine supply. They must ensure that these fees are appropriately calculated based on the specified formulas and indices, specifically the Consumer Price Index (CPI), which affects the dispensing fee and the Premium Free Dispensing Incentive (section 100(3)). The approved pharmacists or authorities must also ensure that they receive the correct amounts as stipulated in the Special Arrangement, and these fees must be indexed annually in line with the CPI.
Failure to comply with the updated fees and the payment structure set out in the Special Arrangement may lead to various civil or administrative consequences. While specific offences and penalties are not detailed in the provided text, breaches of the National Health Act 1953 or its regulations can generally result in fines or other penalties as prescribed by the Act. The exact consequences would depend on the nature and severity of the breach, but it is clear that adherence to the specified fee structure is mandatory and non-compliance can lead to significant repercussions for the involved parties.