Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Hansard source

The Pharmaceutical Benefits Scheme, the PBS, is regarded as one of the best systems of its kind in the world. It provides affordable access to high-quality medicines for all Australians by subsidising the cost of PBS medicines and delivering them through local pharmacies and hospitals in our communities. The PBS safety net insures that families and individuals who require large amounts of medicines are protected from high cumulative costs. The National Health Amendment (Pharmaceutical Benefits Scheme) Bill 2008 contains amendments to the National Health Act 1953 which, although unrelated, will help to ensure that the PBS remains current and operates effectively for all Australians, whether as PBS users, suppliers or the medicines industry.

One of the amendments improves access to the PBS safety net. This will mean that couples living apart, due to illness or infirmity, will be able to use the safety net jointly. These couples will be able to combine PBS co-payment contributions towards the same safety net threshold. Both persons will be able to be included in the same safety net card and will have access to safety net benefits once the threshold is reached. In effect, the PBS payments required for both members of a couple to reach the safety net will be the equivalent of one safety net threshold, not two. This has the potential to reduce the out-of-pocket costs for PBS medicines for such couples by an amount equal to the relevant safety net threshold. PBS medicines required by either person can then be obtained at the reduced safety net rate for the remainder of the calendar year. This amendment strengthens the ability of the PBS safety net to deliver real benefits in savings to the people who need them. It recognises that when couple members need to live apart, for reasons of ill-health, frailty or dependent care, they do not cease to be part of a family. It provides continuity for joint access to safety net entitlements for these couples, despite their living circumstances having changed permanently. It will improve the affordability of PBS medicines for these people at a time in their lives when they may be most in need of PBS benefits.

The bill also amends the act to extend access to the PBS for government officers working outside Australia. Current PBS eligibility, supply and export restrictions prevent pharmaceutical benefits being provided to government officers when working overseas, despite eligibility for the PBS in Australia. However, accessing medicines outside Australia can be difficult and uncertain. The changes will allow pharmacists to dispense PBS prescriptions for medicines required by these officers, accompanying spouses and dependent children and for those medicines to be sent outside Australia in quantities required for their personal use. This will provide access for these Australians to quality, affordable medicines and PBS safety net entitlements.

The amendment to the criteria for determining co-marketed brands will ensure that the legislation operates as was originally intended. The amendment will allow co-marketed brands to remain co-marketed in certain circumstances and to continue to have the co-marketing pricing benefits, even if they are brands of more than one pharmaceutical item. In addition, the amendments provide that the minister may, by legislative instrument, determine that co-marketed brands cease to be co-marketed. The ministerial determination will have precedence over the regulations prescribing co-marketed brands. This is an important amendment as it facilitates timely and efficient administration of the PBS co-marketing arrangements. In response to Senator Colbeck’s question as to how the co-marketing provisions affect industry, I am advised, Senator, that this will be positive for industry, because co-marketed items are protected from statutory price reductions. If there is further information that you would like on that, I am happy to provide it.

This bill also contains minor and technical amendments which change the way that two definitions are referred to in the act and removes the requirement for gazettal of certain ministerial determinations. The relevant determinations will be legislative instruments for the purposes of the Legislative Instruments Act 2003. In response to the question posed by you, Senator Allison, I acknowledge that you have indicated that you will withdraw the amendment that your party has consistently applied to lots of legislation, including PBS legislation. I want to put on the record that the Labor Party is committed to a consistent and comprehensive response to the broad suite of legislation that does not recognise same-sex relationships. This will be part of the audit that we do of legislation to ensure that same-sex couples are considered. There will then be a full response, hopefully, in a short period of time—but not short enough, unfortunately, for the Democrats to be able to vote for it. We acknowledge the Democrats’ persistence, throughout the time they have been in this chamber, in attempting to ensure that same-sex couples are not discriminated against—a view that is shared by the Labor Party.

Finally, I want to thank Senator Colbeck and Senator Allison for their contributions to the debate and for the support of this bill. The changes in the bills strengthen the PBS and improve access to PBS entitlements. The government will continue to monitor the PBS to ensure that it is operating as intended and to ensure that access to necessary medicines is available when needed by those Australians eligible to receive them. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.