Veterans' Affairs Pharmaceutical Benefits Schemes Amendment Determination 2021

EXPLANATORY STATEMENT

Veterans’ Entitlements Act 1986

Military Rehabilitation and Compensation Act 2004

Veterans’ Affairs Pharmaceutical Benefits Schemes Amendment Determination 2021

Instrument 2020 No. R43/MRCC43

Authority

Subsection 286(5) of the Military Rehabilitation and Compensation Act 2004 (the MRCA) and subsection 91(4) provide that the Military Rehabilitation and Compensation Commission (MRCC) and the Repatriation Commission respectively may vary the MRCA Pharmaceutical Benefits Scheme (MRCA PBS) and the Repatriation Pharmaceutical Benefits Scheme (RPBS) (the Schemes).

The proposed variations to the Schemes are to correct a longstanding error which refers to a provision of the Health Act 1953.

Purpose

The proposed instrument will correct a minor but longstanding error in section 40A of the Schemes.

The error was made when section 40A was inserted into the Schemes as new Part 5B in amendments to earlier versions of the Schemes, the Repatriation Pharmaceutical Benefits Scheme (Instrument No.12 of 1995) and the MRCA Pharmaceutical Benefits Scheme (Instrument 2004 No. M22) by the MRCA Pharmaceutical Benefits Scheme (Under Co-payment Data Collection) Determination 2012 (Instrument No. M20/2012) [F2012L00743] and the Veterans’ Entitlements (Repatriation Pharmaceutical Benefits Scheme – Under Co-payment Data Collection) Instrument 2012 (Instrument No. R19/2012) [F2012L00744].

The amendments were made as a consequence of a change in Commonwealth policy concerning the provision of data from pharmacists for those items dispensed by pharmacies where the dispensed price is less than or equal to the co-payment which would otherwise be payable for subsidised items.

Previously pharmacists had not been required to give information about un-subsidised supplies of pharmaceuticals where there is no charge against the Commonwealth.

Section 40A provides for the disclosure of the information to the Department of Health to be authorised by the Schemes where a number of conditions have been met:

• the pharmacist must not have claimed any part of the dispensing price of the pharmaceutical from the Commissions or the Department of Veterans’ Affairs; and
• the dispensing price of the pharmaceutical must be less than or equal to the co-payment the Eligible Person would have otherwise needed to pay for the pharmaceutical if it had been sold at the subsidised, instead of discounted price; and
• the information is given in accordance with the requirements of section 98C of the National Health Act 1958, to the extent they can be applied, as if the information being given under the Scheme to the Secretary of the Department of Health is being given to the Secretary under that provision.

The reference to “section 98C” was incorrect with “section 98AC” being the relevant provision.  Subsection 98AC(4) empowers the Minister for Health, by legislative instrument, to make rules specifying the information to be given (paragraph 98AC(4)(a)) and the procedures for giving it (paragraph 98AC(4)(b)).

Consultation

Section 17 of the Legislation Act 2003 requires a rule-maker to be satisfied, before making a legislative instrument that any consultation the rule-maker considered appropriate and reasonably practicable, has been undertaken.

External consultation was not required for this measure as there is no impact on pharmacists or those eligible to receive pharmaceutical benefits under the Schemes.

Regulatory Impact

None.

Commencement

The determination will commence the day after the instrument is registered.

This Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

ATTACHMENT

VETERANS’ AFFAIRS PHARMACEUTICAL BENEFITS SCHEMES AMENDMENT DETERMINATION 2021 (instrument 2020 No. R43/MRCC43)

1 Name

This section provides that this Instrument is the Veterans’ Affairs Pharmaceutical Benefits Schemes Amendment Determination 2021.

2 Commencement

This section states that this instrument commences the day after it is registered.

3 Authority

This section states that this instrument is made under section 286 of the Military Rehabilitation and Compensation Act 2004 and section 91 of the Veterans’ Entitlements Act 1986.

4 Schedules

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule – Amendments

MRCA Pharmaceutical Benefits Scheme

Item 1 replaces the references (both occurring) to “section 98C” with references to “section 98AC”.

Repatriation Pharmaceutical Benefits Scheme

Item 2 replaces the references (both occurring) to “section 98C” with references to “section 98AC”.