Health Insurance (Pharmaceutical Benefit) (General Provisions) (No. 2) (Amendment No. 10) (Jersey) Order 2013

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 3 April 2013:

Decision Reference: MD-S-2013-0029
Decision Summary Title :	DS – Health Insurance (Pharmaceutical Benefit) (General Provisions) (No.2) (Amendment No.10) (Jersey) Order 2013		Date of Decision Summary:	2 April 2013
Decision Summary Author:	Strategy and Policy Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Health Insurance (Pharmaceutical Benefit) (General Provisions) (No.2) (Amendment No.10) (Jersey) Order 2013		Date of Written Report:	2 April 2013
Written Report Author:	Strategy and Policy Director		Written Report : Public or Exempt?	Public
Subject: Health Insurance (Pharmaceutical Benefit) (General Provisions) (No.2) (Amendment No.10) (Jersey) Order 2013
Decision(s): The Minister made the Health Insurance (Pharmaceutical Benefit) (General Provisions) (No.2) (Amendment No.10) (Jersey) Order 2013
Reason(s) for Decision: The Health Insurance (Pharmaceutical Benefit) (General Provisions) (No.2) (Jersey) Order sets out the details in respect of the administration of pharmaceutical benefit, including the dispensing fee and the discount rates applicable to the total remuneration of pharmacists under the Health Insurance Law. The amendment to the Order creates a two tier dispensing fee, with the first 50,000 items dispensed in any 12 month period attracting a higher dispensing fee. For the interim 5 month period from 1 May 2013 and ending 30 September 2013, the fee is set at £3.40 per item for the first 20,833 items dispensed, compared to £3.13 at present. The fee was last adjusted in November 2010. The fee for the first 50,000 items will next be increased in October 2013, in line with the increase in the June RPI(Y). Amendments have also been made to the discounting arrangements under the legislation.
Resource Implications: There are no manpower implications in respect of this Order. The cost of the dispensing fees and the pharmaceutical benefit is met by the Health Insurance Fund. The additional cost in 2013 is estimated at £600,000.
Action required: Strategy and Policy Director to notify the Greffe and the Law Draftsman that the Order has been made and to forward the signed and sealed Order to the States Greffe, requesting the Greffier of the States to arrange for the Order to be notified to the States.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Health Insurance (Pharmaceutical Benefit) (General Provisions) (No. 2) (Amendment No. 10) (Jersey) Order 2013

Explanatory Note

This Order revises the basic dispensing fee payable to pharmacists on a supply of pharmaceutical benefit and the percentages applied to reduce the aggregate amount payable to an approved supplier in respect of the supply of pharmaceutical benefit in a month.

A 2 tier rate is introduced in respect of the basic dispensing fee paid to a pharmacist who is an approved supplier under the Health Insurance (Jersey) Law 1967 for each item of pharmaceutical benefit supplied on a subscription. The amount paid for each item supplied at the first tier rate is increased.

For the period 1st May 2013 to 30th September 2013 inclusive, a pharmacist will receive a basic dispensing fee of £3.40 for the 20,833 items he or she supplies (the first tier) , and a basic dispensing fee of £3.13 for each item further item dispensed in the period (the second tier).

After that, for each year commencing on 1st October 2013 or its anniversary, a pharmacist will receive a basic dispensing fee of £3.40 for the first 50,000 items he or she supplies, and a basic dispensing fee of £3.13 for each item further item dispensed in the period.

There is already provision for the aggregate amount payable to an approved supplier in respect of the supply of pharmaceutical benefit in any month to be reduced by a percentage determined according to the aggregate value of the basic ingredient price of the items supplied. The percentage rates reduction rates are halved.