Commonwealth Consolidated Acts

NATIONAL HEALTH ACT 1953 - SECT 99ADHA

When this section applies

  (1)   This section applies if:

  (a)   a determination under subsection   85(6) is in force on the reduction day in relation to a brand (the new brand ) of a pharmaceutical item (the existing item ); and

  (b)   the determination came into force:

  (i)   after the last day of the period in respect of which the weighted average disclosed price is determined for another brand (the existing brand ) of the existing item; and

  (ii)   before the reduction day; and

  (c)   the approved ex - manufacturer price of the existing brand of the existing item is reduced on the reduction day under subsection   99ADH(3).

Price reduction

  (2)   On the reduction day, the approved ex - manufacturer price of the new brand of the existing item is taken to be reduced to the same amount as the approved ex - manufacturer price of the existing brand of the existing item on that day.

Claimed price reduction

  (3)   If, on the reduction day:

  (a)   a determination under subsection   85B(3) is in force in relation to a particular pack quantity of the new brand of the existing item; and

  (b)   the approved ex - manufacturer price of the new brand of the existing item is reduced because of subsection   (2);

then, on the reduction day the claimed price for that pack quantity of the new brand of the existing item is taken to be reduced by the percentage worked out as follows:

where:

"AEMP1" means the amount that would have been the approved ex - manufacturer price of the new brand of the existing item on the reduction day if the reduction under subsection   (2) had not occurred.

"AEMP2" means the approved ex - manufacturer price of the new brand of the existing item on the reduction day.