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1998-1999-2000
THE PARLIAMENT OF
THE COMMONWEALTH OF
AUSTRALIA
SENATE
NATIONAL
HEALTH AMENDMENT (IMPROVED MONITORING OF ENTITLEMENTS TO PHARMACEUTICAL
BENEFITS) BILL 2000
SUPPLEMENTARY EXPLANATORY
MEMORANDUM
Amendments to be Moved on Behalf of the
Government
(Circulated
by the authority of the Minister for Health and Aged Care,
the Hon Dr
Wooldridge MP)
ISBN: 0642 454647
NATIONAL HEALTH AMENDMENT (IMPROVED MONITORING OF
ENTITLEMENTS TO PHARMACEUTICAL BENEFITS) BILL 2000
These amendments will amend the National Health Amendment (Improved
Monitoring of Entitlements to Pharmaceutical Benefits) Bill
2000.
These amendments implement changes concerning the membership
and tenure of the Pharmaceutical Benefits Advisory Committee (PBAC).
The
PBAC is a committee of experts. Its function is to make recommendations to the
Minister as to the drugs and medicinal preparations that are to be subsidised
through the Pharmaceutical Benefits Scheme (PBS). It also has the function of
recommending restrictions where it is of the opinion that a pharmaceutical
benefit should only be listed in certain circumstances eg. for particular
conditions.
In performing its functions, the PBAC must give
consideration to the effectiveness and cost of drugs and medicinal preparations
and the comparison of those drugs and medicinal preparations with alternative
therapies, including non-drug therapies.
The amendments provide for the
PBAC to consist of 12 members appointed by the Minister, including one consumer
representative, one health economist, at least one practising community
pharmacist, at least two general practitioners, and at least one clinical
pharmacologist.
Appointments would be for a term of not more than four
years. Members, including the Chairperson, would be limited to terms of 12
years in total with no more than 8 years consecutively. The Chairperson would
be allowed a maximum of eight years in that position. Application provisions
ensure that existing service on the PBAC is counted towards these
limits.
These amendments have no financial impact.
NOTES ON CLAUSES
Amendment (1) - Commencement
Clause 2 is amended as a
consequence of the addition of Schedule 2 to the Bill, to add a commencement
provision for that Schedule.
Amendment (2) -
Commencement
Clause 2 is amended by the addition of two subclauses.
New subclause (2) provides that the amendments made by Schedule 2 will commence
on a day or days to be fixed by Proclamation.
New subclause (3) provides
that, if the Act does not commence under subsection (2) within the period of six
months from the day on which it receives Royal Assent, it commences on the first
day after the end of that period.
Amendment (3) -
Schedule(s)
Clause (3) is amended as a consequence of the addition of
Schedule 2 to the Bill.
Amendment (4) – Schedule
2
This amendment provides for Schedule 2 to be added to the
Bill.
SCHEDULE 2 – AMENDMENTS OF THE NATIONAL HEALTH ACT
1953
This item inserts into the National Health Act 1953, new sections
100A, 100B, 100C and 100D after section 100.
Section 100A establishes the
Pharmaceutical Benefits Advisory Committee (PBAC) and sets out the membership.
The PBAC is to consist of the Chairperson and eleven other members, including
one person to represent consumers, one health economist, at least one practising
community pharmacist, at least two general practitioners and at least one
clinical pharmacologist. For the remaining members, the Minister must be
satisfied that their qualifications or experience are in a field relevant to the
functions of the Committee, enabling them to contribute meaningfully to the
deliberations of the Committee. The Chairperson of the Committee will be a
member of the Committee, and all members will hold office on a part-time
basis.
Section 100B sets out the term of office for members of the PBAC.
Members of the PBAC will be appointed by the Minister by written instrument and
each member will hold office for a term of not more than four years specified in
the instrument. Members, including the Chairperson, are eligible for
reappointment, provided that reappointment will not result in membership for a
continuous period of more than eight years, or more than twelve years in total.
A member shall not be Chairperson for more than eight years in total. The
exercise or performance of the functions and powers of the Committee is not
affected if there is a vacancy in the office of a member of the Committee. The
names and qualifications of the members of the PBAC must be published in the
Gazette.
Section 100C provides that the Minister may at any time
terminate the appointment of a member of the PBAC.
Section 100D sets out
conditions of remuneration for members of the PBAC. Members are to be paid as
determined by the Remuneration Tribunal, subject to the Remuneration Tribunal
Act 1973. Where no determination is in operation, members will be paid the
remuneration that is prescribed.
Item 2
This item repeals
subsections 101(1), (2), (2AAA), (2AA), (2A), (2B) and (2C), which currently
provide for the establishment, membership, terms of office and termination of
appointment, of the PBAC. These provisions are to be replaced by those in new
sections 100A, 100B, 100C and 100D. It also amends the heading to section 101
as that section will now deal only with the functions of the PBAC.
Item 3
This amendment inserts “Pharmaceutical
Benefits Advisory” before “Committee” in subsection 101(3), as
a consequence of the repeal of subsection 101(1) by Item 2.
Item
4
This amendment is an application provision that provides that
periods served as member, or as Chairperson, of the “old PBAC” up to
the commencement of these changes, are to be taken into account in assessing
eligibility for appointment as a member, or as a Chairperson, of the “new
PBAC” under subsection 100B(4) or (5) respectively.
This amendment
also defines:
• “commencement day” as the day on which this
amendment commenced;
• “new PBAC” as the Pharmaceutical
Benefits Advisory Committee within the meaning of the National Health Act
1953, as in force immediately after the commencement day;
and
• “old PBAC” as the Pharmaceutical Benefits Advisory
Committee within the meaning of the National Health Act 1953, as in force
immediately before the commencement day.