Senate debates

Wednesday, 20 June 2007

National Health Amendment (Pharmaceutical Benefits Scheme) Bill 2007

In Committee

11:17 am

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Minister for the Arts and Sport) Share this | Hansard source

by leave—I move:

(1)    Schedule 1, item 81, page 29 (after line 3), at the end of subsection 99ACC(3), add:

Note:   The new price for the single brand of the combination item may be the same as the existing agreed price.

(2)    Schedule 1, item 81, page 29 (lines 4 to 12), omit subsection 99ACC(4), substitute:

        (4)    If the Pharmaceutical Benefits Advisory Committee gives advice to the Minister under subsection 101(4AC) in relation to the combination item, then, in working out the new price of the single brand of the combination item, the Minister may have regard to that advice in considering the extent (if any) to which to reduce the existing agreed price.

     (4A)    If:

             (a)    subsection (4) applies; and

             (b)    the Minister decides to reduce the existing agreed price;

then, in agreeing the new price of the single brand of the combination item, the Minister:

             (c)    may have regard to the advice referred to in subsection (4) in relation to the combination item; and

             (d)    must take into account, in relation to the listed component drug, or each listed component drug, that became subject to statutory price reduction:

                   (i)    the approved price to pharmacists, on the reduction day, of each brand of a pharmaceutical item that has the drug that is the listed component drug; and

                  (ii)    the quantity of the listed component drug contained in the combination item.

      (4B)    If subsection (4) does not apply, then, in agreeing the new price of the single brand of the combination item, the Minister must take into account, in relation to the listed component drug, or each listed component drug, that became subject to statutory price reduction:

             (a)    the approved price to pharmacists, on the reduction day, of each brand of a pharmaceutical item that has the drug that is the listed component drug; and

             (b)    the quantity of the listed component drug contained in the combination item.

(3)    Schedule 1, item 81, page 31 (lines 17 to 23), omit subsection 99ACD(3).

(4)    Schedule 1, item 81, page 31 (line 28), omit “reduction”, substitute “determination”.

(5)    Schedule 1, item 81, page 31 (lines 35 and 36) to page 32 (lines 1 to 5), omit subsection 99ACD(6), substitute:

        (6)    If, on a day before the determination day:

             (a)    one or more of the listed component drugs contained in the drug in the existing item had been subject to a 12.5% price reduction; and

             (b)    because of that price reduction, the approved price to pharmacists of the existing brand of the existing item was reduced;

then the reduction referred to in subsection (5) is to be adjusted to reflect:

             (c)    the extent to which the 12.5% price reduction was taken into account in working out the amount of the reduction to the approved price to pharmacists; and

             (d)    the quantity of the listed component drug contained in the drug in the existing item.

(6)    Schedule 1, item 81, page 34 (lines 21 to 27), omit subsection 99ACE(5), substitute:

        (5)    If, on a day before the reduction day:

             (a)    one or more of the listed component drugs contained in the drug in the related item had been subject to a 12.5% price reduction; and

             (b)    because of that price reduction, the approved price to pharmacists of the related brand of the related item was reduced;

then the reduction referred to in subsection (3) or (4) is to be adjusted to reflect:

             (c)    the extent to which the 12.5% price reduction was taken into account in working out the amount of the reduction to the approved price to pharmacists; and

             (d)    the quantity of the listed component drug contained in the drug in the related item.

(7)    Schedule 1, item 83, page 62 (after line 18), after subsection 101(4AB), insert:

Function relating to Minister’s decisions about prices of combination items

  (4AC)    If the Committee is satisfied that therapy involving a combination item provides, for some patients:

             (a)    a significant improvement in patient compliance with the therapy; or

             (b)    a significant improvement in efficacy or reduction in toxicity;

over alternative therapies, then the Committee must advise the Minister accordingly.

(8)    Schedule 1, page 66 (after line 23), after item 99, insert:

99A  Transitional provision—approved price to pharmacists

If the determination day or reduction day referred to in subsection 99ACD(6) or 99ACE(5) of the National Health Act 1953 is a day that is on or after this Schedule commences, then the reference in those subsections to the approved price to pharmacists on a day (the relevant day) before the determination day or reduction day is a reference to the approved price to pharmacists within the meaning of subsection 98B(3) of that Act as in force on the relevant day.

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