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MRCA Pharmaceutical Benefits Scheme (No.
MRCC 44/2013) [F2013L02012]
Portfolio:
Veterans' Affairs
Authorising
legislation: Military Rehabilitation and Compensation Act 20014
Last day to
disallow: 19 March 2014 (Senate)
Purpose
2.25 The MRCA Pharmaceutical Benefits Scheme (No. MRCC 44/2013) sets out the
circumstances in which the Military Rehabilitation and Compensation Commission
may arrange for pharmaceutical benefits to be provided to members of the
Defence Force, including former members or their dependants, at the
concessional rate. It replaces the MRCA Pharmaceutical Benefits Scheme (2004
No. M22).
Background
2.26 The committee reported on the instrument in its Second Report of the
44th Parliament.
Committee view on compatibility
Right to health
Impact of
changes to calculation of reimbursement on access to medicines
2.27 The committee sought clarification from the Minister for Veterans' Affairs
in relation to the objective of the amendment to the pharmaceutical
reimbursement measure and the impact the amendment will have on those affected.
Minister's response
The VPRS [Veterans' Pharmaceutical Reimbursement Scheme]
reimbursement amount is calculated using an IT system known as the
Pharmaceutical Allowance Calculator. The unintended advantage occurred in
circumstances where the veteran or member received the pharmaceutical allowance
via financial supplements that had not been included in the Pharmaceutical
Allowance Calculator. This meant that the pharmaceutical allowance was not
included in the calculation of their reimbursement, resulting in them receiving
a reimbursement for some co-payments that had already been subsidised by the
pharmaceutical allowance.
As the offsetting of co-payments against the pharmaceutical
allowance is an integral part of the VPRS, the VPRS needed to be amended to
stop these unintended payments. Without the amendments some people would continue
to have all their co-payments off set against would not have their
pharmaceutical allowance recognised in their reimbursement calculation.
The amendments to the VPRS included the addition of the
"missing" financial supplements into the Pharmaceutical Allowance
Calculator. These supplements should have been identified in the Pharmaceutical
Calculator when the Veterans' Pharmaceutical Reimbursement Scheme commenced. The
amendments prevent the payment of double-compensation and thereby protect the
public revenue.
Unfortunately, the example given in reference to "policy
intention" for the pharmaceutical reimbursement as mentioned in the
Consultation part of the Explanatory Statement for the instrument was
incorrect. The reference to policy intention was made in relation to the
provision relating to a service couple where both members of the couple were
eligible for the pharmaceutical reimbursement. This was an error. The provision
in question (paragraph 37(c)) is beneficial in nature. It has nothing to do with
public-revenue protection. Please accept my apology on behalf of the Department
of Veterans' Affairs for the confusion.
The example should have referred to the situation described
above where additional sources of pharmaceutical allowance were not included in
the Pharmaceutical Allowance Calculator - the policy intention being that the pharmaceutical
reimbursement should always be a net amount i.e. co-payments less
pharmaceutical allowance, so as to avoid double-compensation.[1]
Committee response
2.28 The committee thanks the Minister for Veterans' Affairs for his
response and has concluded its examination of this instrument.
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