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2004-2005
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
NATIONAL HEALTH AMENDMENT (BUDGET MEASURES -
PHARMACEUTICAL BENEFITS SAFETY NET) BILL 2005
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Health and Ageing,
the Honourable Tony Abbott MP)
NATIONAL HEALTH AMENDMENT (BUDGET MEASURES -
PHARMACEUTICAL BENEFITS SAFETY NET) BILL 2005
OUTLINE
The purpose of this Bill is to amend Part VII of the National Health Act 1953 (the Act) in
relation to certain aspects of the Pharmaceutical Benefits Scheme (PBS), as announced in the
2005-06 Budget.
The amendments will implement new safety net and patient co-payment arrangements for
some pharmaceutical benefits where the pharmaceutical benefit is supplied within 20 days of
a previous supply. The amendments will also increase the thresholds for eligibility for PBS
safety net entitlements.
Part VII of the Act provides for subsidised access to high quality medicines and includes
mechanisms which support quality use of medicines and appropriate use of Government
funding. The Act establishes patient co-payments and thresholds for eligibility for PBS
safety net entitlements relating to the supply of pharmaceutical benefits, and sets out the
circumstances in which patient co-payments are eligible to accrue towards a person's safety
net total.
Exclusion of early supplies of specified pharmaceutical benefits from safety net entitlements
The Bill introduces a definition for an early supply of a specified pharmaceutical benefit and
establishes a mechanism to determine, by way of legislative instrument, the pharmaceutical
benefits that will be within the scope of the definition. For those pharmaceutical benefits, a
resupply within 20 days of a previous supply of the same pharmaceutical benefit for the same
person will not count towards the calculation of the person's safety net entitlements. For the
purposes of this Explanatory Memorandum, this is referred to as the safety net 20 day rule.
The safety net 20 day rule will result in the following effects for such early supplies:
the patient co-payment amount will not accrue towards the safety net threshold; and
the patient co-payment will be the standard amount that applies to the person's
entitlement, reduced safety net co-payments will not apply.
The new provisions will mean that the PBS safety net will not act as an incentive for patients
to obtain early supplies of pharmaceutical benefits for the purpose of gaining safety net
benefits. Those benefits are obtained when the combined amount of patient co-payments
made by an individual or their family during a calendar year reaches the safety net threshold
set out in Part VII, Division 4A of the Act. Once the safety net threshold is reached, the
patient co-payment for further supplies of pharmaceutical benefits for the remainder of the
calendar year is reduced to the safety net rate set out at section 87 of the Act.
The amendments reflect good practice for safe use of medicines by encouraging access to
medicines in quantities and at a frequency required to meet patient treatment needs. The
changes also highlight the need for the prescribed quantity of a pharmaceutical benefit to
reflect the prescribed dosage. Where necessary for individual dosage requirements,
prescribers may obtain approval to prescribe larger quantities to avoid the need for the patient
to obtain additional or more frequent supplies of pharmaceutical benefits.
1
The pharmaceutical benefits which will be subject to the measure will be determined by the
Minister on the advice of the Pharmaceutical Benefits Advisory Committee (PBAC).
Doctors will still be able to write a prescription for which all repeats of the medicine are
dispensed at the one time - if that is necessary for the patient due to distance from a
pharmacy or chronic illness, and hardship in obtaining repeats. In addition, where patients
need a change in dosage or formulation (eg. injection instead of tablet), the new provisions
will not prevent supply of a necessary prescription within 20 days.
Hospital-related supplies of pharmaceutical benefits for inpatients, non-admitted patients and
patients on discharge will not be subject to the safety net 20 day rule. Such supplies include
pharmaceutical benefits supplied for prescriptions originating from hospitals and day hospital
facilities.
Arrangements for the supply of, and eligibility of patient co-payments for accrual towards the
safety net, for out-patient medications supplied by public hospitals, pharmaceutical benefits
supplied by participating PBS-Reform hospitals operating under the Australian Health Care
Agreements between the Commonwealth and the States, and pharmaceutical benefits
supplied by private hospitals will be unaffected by these amendments.
Current arrangements under Regulation 25 of the National Health (Pharmaceutical Benefits)
Regulations 1960 provide for PBS subsidised supply of certain pharmaceutical benefits
within 20 days of the previous supply in certain circumstances. These circumstances include
where the previous supply has been lost, stolen or destroyed; or where the supply is required
without delay for the treatment of the person.
The early supply of a specified pharmaceutical benefit will be subject to both the
Regulation 25 requirements regarding the circumstances in which an early supply may be
made, and also the safety net 20 day rule.
Increase in the PBS Safety Net
The Bill will also increase the thresholds, set out at Part VII, Division 4A of the Act, for
eligibility for PBS safety net entitlements for general and concessional patients.
The amendments will:
increase the general threshold by an amount equal to two indexed general patient co-
payment amounts on 1 January each year from 2006 to 2009 inclusive; and
increase the concessional threshold by an amount equal to two indexed concessional
patient co-payment amounts on 1 January each year from 2006 to 2009 inclusive.
These increases will occur in addition to the annual indexation of the safety net thresholds on
1 January each year (see Division 4A of the Act).
The increases will result in a gradual adjustment of the eligibility thresholds for the PBS
safety net entitlements via increments over four years. This will help to rebalance the way
costs for the PBS are shared between the Commonwealth government and individuals to
reflect a fair contribution by patients to the cost of the PBS at the point of sale.
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FINANCIAL IMPACT STATEMENT
The amendments relating to the early supply of specified pharmaceutical benefits via the PBS
and the RPBS are estimated to result in savings of approximately $70 million over four years:
2005-06 2006-07 2007-08 2008-09 4 Yr Total
$m $m $m $m
-$3.1 -$21.9 -$22.4 -$22.9 -$70.1
The amendments relating to increases in the safety net thresholds are estimated to result in
savings to the PBS and RPBS of approximately $140 million over four years:
2005-06 2006-07 2007-08 2008-09 4 Yr Total
$m $m $m $m
-$1.7 -$21.5 -$45.6 -$71.4 -$140.2
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NATIONAL HEALTH AMENDMENT (BUDGET MEASURES -
PHARMACEUTICAL BENEFITS SAFETY NET) BILL 2005
NOTES ON CLAUSES
Clause 1 - Short title
Clause 1 provides that the amending Act may be cited as the National Health Amendment
(Budget Measures - Pharmaceutical Benefits Safety Net) Act 2005.
Clause 2 - Commencement
Subclause 2(1) provides that proposed sections 1, 2 and 3 of the Act and anything else not
elsewhere covered by the table set out in subclause 2(1) commence on Royal Assent.
Schedule 1, items 1, 2, and 12, and Schedule 2, Part 1 commence on Royal Assent. Schedule
1, items 3 to 11, and 13, and Schedule 2, Part 2 commence on 1 January 2006. Schedule 2,
Part 3 commences on 1 January 2007. Schedule 2, Part 4 commences on 1 January 2008.
Schedule 2, Part 5 commences on 1 January 2009. Schedule 2, Part 6 commences on
31 December 2009.
Clause 3 - Schedule(s)
Clause 3 provides that each Act that is specified in a Schedule to the amending Act is to be
amended or repealed as set out in the applicable terms in the Schedule concerned, and that
any other item in a Schedule to the amending Act has effect according to its terms.
SCHEDULE 1 - EARLY SUPPLIES OF PHARMACEUTICAL BENEFITS ETC.
Item 1
This item amends subsection 84(1) of the National Health Act 1953 (the Act) to insert a
definition of early supply of a specified pharmaceutical benefit that has the meaning given by
subsection 84AAA(1).
Item 2
This item inserts after section 84 of the Act, new section 84AAA. New subsection 84AAA(1)
provides that a supply of a pharmaceutical benefit to a person (whether or not that supply is a
supply of a kind described in paragraph 84C(4A)(a)) is an early supply of a specified
pharmaceutical benefit if the supply is made within 20 days after the day of a previous supply
of the same pharmaceutical benefit to the person (whether or not the previous supply is a
supply of a kind described in paragraph 84C(4A)(a)).
The reference to paragraph 84C(4A)(a) of the Act is a reference to repatriation
pharmaceutical benefits supplied under the scheme established under section 91 of the
Veterans' Entitlements Act 1986. This means that the early supply of a specified
pharmaceutical benefit refers to a supply of a specified pharmaceutical benefit, as either a
pharmaceutical benefit or a repatriation pharmaceutical benefit, within 20 days of a previous
supply of the same pharmaceutical benefit, (as either a pharmaceutical benefit or a
repatriation pharmaceutical benefit) to the same person. The repatriation pharmaceutical
benefits supplied under the Repatriation Pharmaceutical Benefits Scheme (RPBS) which will
be subject to the new provisions for early supply of a specified pharmaceutical benefit are
4
those where the repatriation pharmaceutical benefit is the same as a specified pharmaceutical
benefit for supply under the Pharmaceutical Benefits Scheme (PBS).
The supply of a pharmaceutical benefit for prescriptions originating from a hospital or day hospital
facility is not subject to the provisions for an early supply of a specified pharmaceutical benefit. The
meaning of hospital is defined in the Health Insurance Act 1973 to mean a recognised
hospital, a private hospital, or a hospital that is declared by the Minister to be a hospital for
the purposes of that definition. The meaning of day hospital facility is as defined in the
National Health Act 1953 at subsection 4(1).
New subsections 84AAA(2) and (3) provide that the Minister may specify, by legislative
instrument, pharmaceutical benefits for the purposes of new subsection 84AAA(1), and may
include reference to the circumstances in which the pharmaceutical benefit is supplied or any
other circumstances in relation to the pharmaceutical benefit.
Item 3
Subsections 84C(4) and 84C(4A) of the Act regulate the supply or repeated supply of
pharmaceutical benefits and repatriation pharmaceutical benefits which are be taken into
account in totalling amounts charged for the purpose of demonstrating eligibility for a safety
net concession card or safety net entitlement card.
A "concession card" is the safety net card which a general patient (individual or family) is
eligible to receive when total eligible patient co-payments for pharmaceutical benefits reach
the general patient safety net threshold (currently $874.90). A concession card qualifies the
persons covered by the card to receive pharmaceutical benefits at the concessional co-
payment rate (currently $4.60), except as provided for in these amendments.
An "entitlement card" is the safety net card which a concessional beneficiary (as defined at
section 84 of the Act) individual or family is eligible to receive when total eligible patient
payments for pharmaceutical benefits reach the concessional patient safety net threshold
(currently 52 prescriptions, $239.20). An entitlement card qualifies the persons covered by
the card to receive pharmaceutical benefits with no patient co-payment, except as provided
for in these amendments.
Item 3 inserts, after subsection 84C(4), new subsection 84C(4AA) to provide that the amount
charged for an early supply of a specified pharmaceutical benefit is not to be taken into
account when determining eligibility for a concession card or entitlement card, unless the
supply is a supply of an out-patient medication.
Out-patient medication is defined in section 84 of the Act to mean a drug or medicinal
preparation supplied through the out-patient department of a public hospital.
Item 4
Subsection 87(2) of the Act sets out the amounts to be charged to patients for the supply of
pharmaceutical benefits. These provisions form the basis for the patient co-payment amounts
which apply for general benefit prescriptions (currently up to $28.60), concessional benefit
prescriptions (currently $4.60), concession card prescriptions (currently $4.60), and
entitlement prescriptions (free). Prescriptions for repatriation pharmaceutical benefits are
treated as for concessional benefit prescriptions and entitlement prescriptions.
5
Item 4 amends paragraph 87(2)(a) of the Act by deleting the provision that the concessional
co-payment amount applies only for a concessional benefit prescription or a concession card
prescription. It substitutes three new subparagraphs setting out the circumstances in which
the concessional co-payment amount will apply. These are for: a concessional benefit
prescription; an entitlement card prescription where the supply is an early supply of a
specified pharmaceutical benefit, or a concession card prescription (other than for an early
supply of a specified pharmaceutical benefit). This will result in the concessional co-
payment amount being the patient charge for an entitlement card prescription where the
supply is an early supply of a specified pharmaceutical benefit, but not for a concession card
prescription where the supply is an early supply of a specified pharmaceutical benefit.
Item 5
Subsection 87(2) of the Act has the effect that the general patient co-payment
(currently $28.60) applies for general patient prescriptions, except where they are eligible to
be charged at the reduced concessional rate because the person or person's family has made
co-payments totalling the general patient safety net.
Item 5 inserts, after subsection 87(2) of the Act, new paragraph 87(2)(2AAA), to provide that
the patient charge that applies for a general benefit prescription after a person or the person's
family has made co-payments totalling the safety net is not reduced to the concessional co-
payment amount (currently $4.60) if the supply of the pharmaceutical benefit is an early
supply of a specified pharmaceutical benefit.
Item 6
Item 6 amends subsection 87(2)(e) of the Act to achieve, for supplies made on a concession
card prescription, the same result as described under Item 5 in relation to supplies made on a
general benefit prescription for a person or the person's family who has made co-payments
totalling the safety net.
The amendment results in the patient co-payment for a concession card prescription being the
general patient benefit co-payment amount (currently $28.60) not the concessional co-
payment amount (currently $4.60), if the supply of the pharmaceutical benefit is an early
supply of a specified pharmaceutical benefit.
Item 7
Subsection 87(2AB) of the Act sets out the types of supplies of pharmaceutical benefits in
relation to which patient charges are to be taken into account or disregarded for the purpose
of determining whether a person or the person's family has reached the general patient safety
net threshold. This item adds at the end of subsection 87(2AB), new paragraph 87(2AB)(e),
that requires any amount charged for an early supply of a specified pharmaceutical benefit
(other than a supply of an out-patient medication) is to be disregarded in totalling the
amounts charged.
Items 8 and 9
Subsection 87(5) of the Act provides that approved hospital authorities as defined at section
84 of the Act may charge amounts not exceeding those set out in subsections 87(2) and
87(2A) to be charged by approved pharmacists and approved medical practitioners for the
supply of pharmaceutical benefits.
6
Item 8 deletes from the reference (in subsection 87(5)) to the person receiving treatment at a
hospital, the phrase not being the holder of an entitlement card. This will result, as for other
prescription categories, in an approved hospital authority being able to charge for the supply
of a pharmaceutical benefit on an entitlement card prescription, an amount which does not
exceed the amount to be charged by approved pharmacists and approved medical
practitioners for the supply. However, the ability of an approved hospital authority to charge
an amount for the supply of a pharmaceutical benefit on an entitlement card prescription is
limited by the provision in Item 9.
Item 9 inserts after 87(5) of the Act, new subsection 87(5A), to limit the circumstances in
which an approved hospital authority may charge a patient co-payment for the supply of a
pharmaceutical benefit on an entitlement card prescription (as allowed for under the Item 8
amendment) to being only in circumstances where the supply of the pharmaceutical benefit is
an early supply of a specified pharmaceutical benefit.
The combined effect of Items 8 and 9 is to ensure that no change is made to the current
situation whereby approved hospital authorities cannot charge a patient payment for the
supply of a pharmaceutical benefit on an entitlement card prescription, but provide for the
approved hospital authority to be able to make a charge for supply of a pharmaceutical
benefit on an entitlement card prescription where the supply is an early supply of a specified
pharmaceutical benefit.
This means that the provisions for charging a patient co-payment for an early supply of a
specified pharmaceutical benefit will be in line with those already in place for charging by
approved hospital authorities for other categories of prescriptions for the supply of
pharmaceutical benefits, and in all cases limited to an amount that does not exceed the
amount charged by an approved pharmacist or approved medical practitioner.
Item 10
Section 99 of the Act sets out the amount that pharmacists and medical practitioners who are
approved under the Act to supply pharmaceutical benefits, are entitled to be paid by the
Commonwealth for supplying those benefits.
Item 10 amends, the provisions in paragraph 99(2)(a) of the Act that provide for the amount to
be paid by the Commonwealth to approved suppliers for the supply of pharmaceutical benefits
on an entitlement card prescription, to be limited to those circumstances where the supply of
the pharmaceutical benefit on an entitlement card prescription is not an early supply of a
specified pharmaceutical benefit.
The effect of excluding the supply of a pharmaceutical benefit on an entitlement card
prescription that is an early supply of a specified pharmaceutical benefit, is that the payment
made to the approved supplier for these supplies will default to the payment provisions in place
under paragraph 99(2)(b) of the Act.
The provisions in paragraph 99(2)(b) of the Act, together with paragraph 99(2)(a) as amended,
result in the payment to the approved supplier for all categories of prescriptions, (other than
entitlement card prescriptions which are not for an early supply of a specified pharmaceutical
benefit), of an amount that is the difference, if any, between the Commonwealth price and the
amount the approved supplier is entitled to charge the patient under subsection 87(2) of the Act.
7
Item 11
Subsection 99(2A) of the Act regulates the amount to be paid to approved pharmacists or
medical practitioners for the supply of pharmaceutical benefits on general benefit
prescriptions where the Commonwealth price is less than the general patient co-payment.
Item 11 amends subsection 99(2A) of the Act to include the supply of a pharmaceutical
benefit on a concession card prescription in circumstances where the supply is an early
supply of a specified pharmaceutical benefit, as another type of prescription for which the
provisions in subsection 99(2A) of the Act will apply. This reflects the intention that where
the supply of a pharmaceutical benefit on a concession card prescription is an early supply of
a specified pharmaceutical benefit, the reduced concessional charge does not apply. For an
early supply of a pharmaceutical benefit where the Commonwealth price is less than the
general co-payment amount, the patient will pay an amount, not exceeding the general co-
payment (currently $28.60), to the pharmacist as full payment. The pharmacist will not
receive any payment from the Commonwealth for the early supply of the pharmaceutical
benefit.
Item 12
Section 101 of the Act sets out the functions of the Pharmaceutical Benefits Advisory
Committee (PBAC) in relation to making recommendations and providing advice to the
Minister regarding the medicines to be declared as pharmaceutical benefits under Part VII of
the Act, and any other matter concerning Part VII of the Act referred to the PBAC by the
Minister.
Item 12 adds new subsection 101(3AA) to extend the PBAC's functions such that the PBAC
is to make recommendations to the Minister about what should be specified in the
determination made under new subsection 84AAA(2) regarding the pharmaceutical benefits
that are specified pharmaceutical benefits and therefore subject to the new provisions relating
to the early supply of pharmaceutical benefits.. Item 12 also inserts new subsection 101(3AB)
which provides that this new function does not limit the other functions of the PBAC set out
in subsection 101(3) of the Act.
Item 13
Item 13 provides that the amendments in Schedule 1 apply to an early supply of a specified
pharmaceutical benefit made on or after 1 January 2006, irrespective of whether the early
supply is an early supply because of another supply of a pharmaceutical benefit or a
repatriation pharmaceutical benefit that was made before 1 January 2006. This amendment
makes clear that the calculation of the interval between supplies for the purposes of the safety
net 20 day rule relates back to a previous supply even if that supply was made prior to the
commencement of these amendments.
SCHEDULE 2--AMOUNT OF SAFETY NET
SCHEDULE 2 - PART 1
These amendments commence on Royal Assent.
Items 1 and 2
Section 84C of the Act sets out the requirements for demonstrating eligibility for a safety net
concession card or a safety net entitlement card.
8
Subsection 84C(1AA) requires that for a general patient to be eligible for a concession card,
the total of the amounts charged previously for the supply of pharmaceutical benefits and the
amount to be charged for the pharmaceutical benefit being supplied must be equal to or not
be less $874.90. This amount is known as the "general patient safety net".
Item 1 amends subsection 84C(1AA) to remove $874.90 as the amount that the total general
patient charges must be equal to in order to be eligible for a safety net concession card and
substitutes the words is the amount of the general patient safety net (within the meaning of
section 99F).
Item 2 amends subsection 84C(1AA) in a similar way to Item 1 by removing $874.90 as the
amount that the total general patient charges must be not less than in order to be eligible for a
safety net concession card and substitutes the words than the amount of the general patient
safety net.
These changes will obviate the need to amend the dollar value for the general patient safety
net amount as the amount is adjusted in accordance with the provisions set out at Division 4A
of the Act.
Items 3 and 4
Subsection 87(2) of the Act sets out the amounts to be charged to patients for the supply of
pharmaceutical benefits according to the category of benefit supplied. These provisions
regulate the basis for the patient co-payment amounts which apply for general, concessional,
safety net concessional, and safety net entitlement categories of supply.
Paragraphs 87(2)(b) and 87(2)(c) of the Act provide for the co-payment for a general patient
prescription to be charged at the concessional benefit rate if it is demonstrated that a person
or their family has previously been charged for the supply of pharmaceutical benefits, a total
amount not less than $874.90.
Items 3 and 4 amend paragraphs 87(2)(b) and 87(2)(c) respectively to remove $874.90 as the
amount that total general patient charges must be not less than in order for a general patient
prescription to be charged at the concessional benefit rate. In each case, the amendment
substitutes the words than the amount of the general patient safety net (within the meaning of
section 99F).
These changes will obviate the need to amend the dollar value of the general patient safety
net amount as the amount is adjusted in accordance with the provisions set out at Division 4A
of the Act.
Items 5 and 6
The definition of the general patient safety net and the dollar amount of that safety net is set
out in section 99F of the Act.
Item 5 repeals the definition and replaces it with an amount - general patient safety net
means $874.90.
Item 6 introduces a new term general patient safety net base amount which is defined as
$874.90.
9
This new definition is required to allow for the new method of calculation of the general patient
safety net amount to come into effect on 1 January 2006 and to apply on 1 January of each year
thereafter until and including 2009.
The substituted definition for the general patient safety net amount is effective from the date
of Royal Assent but this will not result in any change to the safety net amount during 2005.
The new definition for general patient safety net base amount comes into effect on
1 January 2006.
Item 7
Section 99G of the Act provides for annual indexation of the safety net amounts and patient
co-payment charges. It sets out the method to be used for indexing these amounts and the
formula for calculating the indexation factor which is based on the Consumer Price Index.
The table in subsection 99G(1) of the Act sets out the amounts that are subject to indexation -
the Item 4 amount in the table is the general patient safety net. The current figure for this
amount immediately prior to the indexation day is used to calculate the new general patient
safety net.
Item 7 substitutes General patient safety net base amount in place of General patient safety
net at Item 4 in the table. This change, effective from 1 January 2006, will allow for on-
going calculation of an annual indexed base amount for the general safety net using the figure
from the previous year as the starting point. The indexed based amount is then used as a
component in calculating the total indexed safety net for each year. For 2006, the base
amount for the first calculation using the new method is set, under Item 6, to $874.90 which
is the 2005 figure.
SCHEDULE 2 - PART 2
These amendments commence on 1 January 2006.
Item 8
Section 99F of the Act includes the definition of concessional beneficiary safety net as
meaning: the amount worked out by multiplying the concessional beneficiary charge by 52.
Item 8 removes "52" and substitutes "54" as the number by which the concessional co-payment
amount is multiplied to calculate the concessional beneficiary safety net for that year.
Item 9
Section 99F of the Act includes the definition of general patient safety net as meaning an
amount of $874.90.
Item 9 amends the definition of general patient safety net to mean that it is:
the general patient safety net base amount plus 2 times the amount of the general
patient charge.
This amendment provides for the new method of calculating the general patient safety net to
incorporate the indexed base amount from the previous year plus two indexed general co-
payment amounts effective from 1 January 2006. Subsequent years are dealt with in Parts 3
to 5 below. Part 6 limits this method of calculation to the years from 2006 to 2009 only, by
changing the definition for the general patient safety net in an amendment effective from
31 December 2009.
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SCHEDULE 2 - PART 3
These amendments commence on 1 January 2007.
Item 10
Item 10 changes the definition of concessional beneficiary safety net in section 99F, as
amended by Item 8 above, to remove "54" and substitute "56" as the number by which the
concessional co-payment amount is multiplied to calculate the concessional beneficiary safety
net for that year.
Item 11
Item 11 changes the definition of general patient safety net in section 99F, as amended by
Item 9 above, to remove "2" and substitute "4" as the number by which the general patient
charge amount is multiplied before being added to the indexed general patient safety net base
amount in calculating the general patient safety net for that year.
SCHEDULE 2 - PART 4
These amendments commence on 1 January 2008.
Item 12
Item 12 changes the definition of concessional beneficiary safety net in section 99F, as
amended by Item 10 above, to remove "56" and substitute "58" as the number by which the
concessional co-payment amount is multiplied to calculate the concessional beneficiary safety
net for that year.
Item 13
Item 13 changes the definition of general patient safety net in section 99F, as amended by
Item 11 above, to remove "4" and substitute "6" as the number by which the general patient
charge amount is multiplied before being added to the indexed general patient safety net base
amount in calculating the general patient safety net for that year.
SCHEDULE 2 - PART 5
These amendments commence on 1 January 2009.
Item 14
Item 14 changes the definition of concessional beneficiary safety net in section 99F, as
amended by Item 12 above, to remove "58" and substitute "60" as the number by which the
concessional co-payment amount is multiplied to calculate the concessional beneficiary safety
net for that year.
Item 15
Item 15 changes the definition of general patient safety net in section 99F, as amended by
Item 13 above, to remove "6" and substitute "8" as the number by which the general patient
charge amount is multiplied before being added to the indexed general patient safety net base
amount in calculating the general patient safety net for that year.
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SCHEDULE 2 - PART 6
These amendments commence on 31 December 2009.
Items 16, 17 and 18
These items provide for the method used to calculate the general patient safety net for 2006 to
2009 inclusive as set out in Parts 1 to 5 above to be changed back to the method in place prior
to 1 January 2006.
Item 16 substitutes the definition of general patient safety net in section 99F, as amended, to
mean:
the amount that was the general patient safety net immediately before 31 December 2009.
Item 17 repeals the definition of general patient safety net base amount in section 99F, as
amended, as it no longer forms part of the calculation.
Item 18 substitutes general patient safety net in place of general patient safety net base
amount as the Item 4 amount in the CPI Indexation Table in section 99G.
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