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2002
THE PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
NATIONAL HEALTH
AMENDMENT (PHARMACEUTICAL BENEFITS—BUDGET MEASURES) BILL
2002
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Health and Ageing,
Senator the Hon Kay
Patterson)
NATIONAL HEALTH AMENDMENT (PHARMACEUTICAL
BENEFITS—BUDGET MEASURES) BILL 2002
This Bill proposes amendments to the National Health Act
1953.
These amendments implement increases to Pharmaceutical Benefits
Scheme patient co-payments and safety nets, as announced in the 2002-03 Budget,
to reduce outlays under the Pharmaceutical Benefits Scheme.
The
amendments will:
• increase the general patient co-payment from
$22.40 to $28.60, with effect from 1 August 2002;
• increase the
concessional patient co-payment from $3.60 to $4.60, with effect from
1 August 2002;
• increase the general patient safety net
threshold from $686.40 to $874.90, with effect from 1 January 2003 ;
and
• increase the concessional patient safety net threshold (an amount
equal to 52 times the concessional patient co-payment) from $187.20 to $239.20,
with effect from 1 January 2003.
These increases will take the place of
indexation changes that would otherwise occur with effect from 1 January 2003.
Indexation of patient co-payments and safety net thresholds will resume with
effect from 1 January 2004.
The amendments are estimated to result in savings of approximately $1.1
billion over four years:
|
2002-03
$m |
2003-04
$m |
2004-05
$m |
2005-06
$m |
|
-298.6
|
-281.2
|
-272.1
|
-263.4
|
NATIONAL HEALTH AMENDMENT (PHARMACEUTICAL
BENEFITS-BUDGET MEASURES) BILL 2002
NOTES ON CLAUSES
Clause 1 – Short
title
This clause specifies the short title of the Act as the National
Health Amendment (Pharmaceutical Benefits—Budget Measures) Bill
2002.
Clause 2 – Commencement
Clause 2 provides
that Schedule 1, Part 1 (items 1 to 24) commence on 1 August 2002, Schedule 1,
Part 2 (items 25 to 28) commence on 1 January 2003 and that the remainder of the
Act commences on Royal Assent.
Clause 3 –
Schedule
This clause provides that the Acts specified in the Schedule are
amended as set out in the Schedule. The Bill comprises only one Schedule that
amends the National Health Act 1953.
Subsection 84C(4) provides that the supply of a pharmaceutical benefit
whose Commonwealth dispensed price exceeds the patient co-payment is not to be
counted towards the safety net threshold unless the amount received by the
pharmacist in respect of that supply is at least equal to the relevant patient
co-payment. Items 1 and 2 amend paragraphs 84C(4)(c) and (d) to reflect the new
patient co-payments of $4.60 and $28.60 effected by items 6 and 7 respectively.
Item 3 generalises the note to subsection 84C(4) to obviate the need for any
future amendment.
Subsection 84C(1C) provides that where a person is a general patient
during part of an entitlement period (calendar year) and a concessional
beneficiary during another part of that entitlement period, any supplies of
general benefit prescriptions made to the person can be counted towards the
concessional safety net threshold at a transferred value. Section 84CA sets
that transferred value at a rate equal to the concessional patient co-payment.
Item 4 amends section 84CA to reflect the new concessional patient co-payment of
$4.60 effected by item 6. Item 5 generalises the note to section 84CA to
obviate the need for any future amendment.
Item 6 amends paragraphs 87(2)(a), (b) and (c) to provide that the
patient co-payment for concessional benefit prescriptions and for concession
card (general safety net) prescriptions will be increased from $3.20 (indexed
under section 99G, and currently $3.60) to $4.60.
Item 7 amends paragraph 87(2)(e) to provide that the patient co-payment
for general benefit prescriptions will be increased from $20.00 (indexed under
section 99G, and currently $22.40) to $28.60.
Item 8 generalises the note to subsection 87(2) to obviate the need for
any future amendment.
Subsection 99(2A) provides that the supply on general benefit
prescription of a pharmaceutical benefit for which the Commonwealth (dispensed)
price at the time of supply does not exceed the general patient co-payment is
deemed not to be the supply of a pharmaceutical benefit, except for the purpose
of recording expenditure towards the safety net threshold. Item 9 amends
paragraphs 99(2A)(a), (aa) and (b) to reflect the new general patient co-payment
of $28.60 effected by item 7. Item 10 generalises the note to subsection 99(2A)
to obviate the need for any future amendment.
Subsection 99(2AB) provides that the supply on a concession card
prescription of a pharmaceutical benefit for which the Commonwealth (dispensed)
price at the time of supply does not exceed the concessional patient co-payment
is deemed not to be the supply of a pharmaceutical benefit, except for the
purpose of recording expenditure towards the safety net threshold. Item 11
amends paragraphs 99(2AB)(a), (b) and (c) to reflect the new concessional
patient co-payment of $4.60 effected by item 6. Item 12 generalises the note to
subsection 99(2AB) to obviate the need for any future amendment.
Subsection 99(2B) provides that the supply on a concessional benefit
prescription of a pharmaceutical benefit for which the Commonwealth (dispensed)
price at the time of supply does not exceed the concessional patient co-payment
is deemed not to be the supply of a pharmaceutical benefit, except for the
purpose of recording expenditure towards the concessional safety net threshold.
Item 13 amends paragraphs 99(2B)(a), (b) and (c) to reflect the new concessional
patient co-payment of $4.60 effected by item 6. Item 14 generalises the note to
subsection 99(2B) to obviate the need for any future
amendment.
Items 15, 17 and 18 amend the definitions of concessional beneficiary
charge, general patient charge and general patient reduced charge in section 99F
to reflect the increased patient co-payments of $4.60, $28.60 and $4.60
respectively, effected by items 6 and 7.
Section 99F provides that the concessional beneficiary safety net is an
amount equal to 52 times the concessional beneficiary charge. Item 16 is a
savings provision that ensures that the concessional beneficiary safety net will
remain at its current level ($187.20) for the remainder of the 2002 calendar
year.
Section 99G sets out the method and timing of indexing patient
co-payments and safety net thresholds, which normally occurs with effect from 1
January each year.
Items 19, 21 and 23 repeal provisions of section 99G
that are now obsolete or redundant. Item 22 amends the note to subsection
99G(2) to obviate further amendment in the event of a future change of name of
the Department administering Part VII of the National Health Act
1953.
Item 20 provides that the increased patient co-payments and
safety net thresholds will be subject to indexation after 2003.
Subitem
24(1) is a savings provision that preserves the validity of indexation before
2003. Subitem 24(2) provides that the amounts to be indexed with effect from
1 January 2004 will be the new patient co-payments and safety net
thresholds and that the Consumer Price Index for the September 2002 quarter will
be used as the basis for indexation.
SCHEDULE 1, PART 2
Item 25 amends subsection 84C(1AA) by increasing from $600 (indexed under
section 99G, and currently $686.40) to $874.90 the level of expenditure which
makes a general patient eligible for a safety net concession card and thus
obtain pharmaceutical benefits at the concessional rate for the remainder of the
entitlement period (calendar year). Item 26 generalises the note to subsection
84C(1AA) to obviate the need for any future amendment.
Item 27 amends paragraphs 87(2)(b) and (c) by increasing from $600
(indexed under section 99G, and currently $686.40) to $874.90 the expenditure
level at which a general patient becomes eligible to be charged only the
concessional rate of patient co-payment for the supply of a pharmaceutical
benefit.
Item 28 amends the definition of general patient safety net in section
99F to reflect the increase to $874.90 effected by items 25 and 27.