What is the program?
Under this program, Aboriginal health services (AHSs) in remote areas can provide free Pharmaceutical Benefits Scheme (PBS) medicines to their patients.
They can give the medicines directly to their patients during a consultation without using a PBS prescription form. This means the patient does not need to go to a pharmacy for their medicines.
This special arrangement began in 1999 under section 100 of the National Health Act 1953.
Why the program is important
It can be difficult for people living in remote areas of Australia to get PBS medicines. They may:
- not have basic medical services or pharmacies near them
- face delays in getting medicines through a prescription
- find it hard to prove they are eligible for concessional benefits under the PBS
- not be able to afford the medicines they need.
This program makes it easier for people in remote areas to get PBS medicines for free. More than 160 AHSs and their patients benefit from this program.
How the program works
1. AHSs apply for approval to take part
To take part in this program, an AHS must:
Participation is voluntary. Some services may wish to keep their current supply arrangements.
2. AHSs order medicines from an approved supplier
After an AHS is approved, they:
- bulk order eligible medicines from an approved supplier using the supplies request form
- maintain a stock of eligible medicines.
They can also order medicines for an individual patient through a prescription. The supplier will label the medicine for the patient.
AHSs do not need to pay suppliers for medicines ordered under this program.
Find out more about ordering and claiming supplies of PBS medicines on the Services Australia website.
3. Approved supplier provides the medicines and claims for payment
When an approved supplier receives a supplies request form from an AHS, they:
- provide the medicines to the AHS
- confirm the supply by completing the rest of the form
- submit the form to Services Australia to claim for payment.
The supplier must not send the medicines to patients directly.
Find out more about ordering and claiming supplies of PBS medicines on the Services Australia website.
4. AHSs dispense the medicines
An appropriate health professional from the AHS dispenses the medicines to their patients. They must be either:
- a medical practitioner
- an Aboriginal health worker or a nurse working under the supervision of a medical practitioner (where consistent with the relevant state or territory law).
The AHS must not charge a co-payment to the patient for the medicines.
Payment amount for approved supplier
For each PBS medicine supplied to an AHS, the payment to the supplier is the sum of:
- the approved price to pharmacists
- an amount for administration, handling and infrastructure
- a handling fee – this is indexed annually and is $3.40 as of 1 July 2024
- if applicable – the patient-specific medicine supply fee for each PBS medicine labelled for individual patients. This is indexed annually and is $5.37 as of 1 July 2024.
For more details, see the National Health (Remote Area Aboriginal Health Services Program) Special Arrangement 2017 (section 15).
Governance of the program
AHSs must comply with strict conditions. This includes state or territory requirements when they prescribe, store and dispense medicines. We will not approve AHSs if they do not meet these requirements.
Find out more about the eligibility criteria for AHSs.
Who we work with
We:
- develop program policy
- receive, process and approve applications from AHSs to take part in the program.
Services Australia:
- provides AHSs with a registration number after approval
- processes payment claims from approved suppliers.