Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022

Administered by Department of Health, Disability and Ageing

Legislation au F2022L01358 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

                                                       

Health Insurance Act 1973

 

Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022

 

Subsection 3C(1) of the Health Insurance Act 1973 (the Act) provides that the Minister may, by legislative instrument, determine that a health service not specified in an item in the pathology services table (the Table) shall, in specified circumstances and for specified statutory provisions, be treated as if it were specified in the Table.   

 

The Table is set out in the regulations made under section 4A of the Act. The most recent version of the regulations is the Health Insurance (Pathology Services Table) Regulations 2020.

  

This instrument relies on subsection 33(3) of the Acts Interpretation Act 1901 (AIA). Subsection 33(3) of the AIA provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

Purpose

The purpose of the Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022 (the Amendment Determination) is to amend the Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018 (Co-Dependent Pathology Services Determination). Under this Amendment Determination, three existing items (73337, 73341 and 73344) will be amended and one new item (73436) will be created.

 

From 1 November 2022, the Amendment Determination will amend existing items 73337, 73341 and 73344 to replace the reference to the specific drug ‘pembrolizumab’ with a more general reference to ‘an immunotherapy’ which will cover pembrolizumab, cemiplimab, other Pharmaceutical Benefits Scheme (PBS) listed immunotherapies and future listed drugs. This enables Medicare benefits to be payable for biomarker testing for the evaluation of the absence of epidermal growth factor receptor (EGFR), anaplastic lymphoma kinase (ALK) or ROS proto-oncogene (ROS1) to determine patient eligibility for treatment with a PBS listed immunotherapy drug, such as cemiplimab or pembrolizumab. Cemiplimab and pembrolizumab, are immunotherapy drugs that are used to treat a number of cancers.

 

In November 2021, the Pharmaceutical Benefits Advisory Committee (PBAC) recommended the listing of cemiplimab for the treatment of patients with previously untreated metastatic nonsmall cell lung cancer (NSCLC) with a Programmed Death-Ligand 1 (PD-L1) tumour proportion score greater than or equal to 50 per cent with no evidence of an EGFR gene, an ALK gene rearrangement or a ROS1 gene arrangement in tumour materials. At its November 2021 meeting, the Medical Services Advisory Committee (MSAC) supported amendments to Medicare Benefits Schedule (MBS) items 73337, 73341 and 73344 to enable Medicare benefits to be payable for biomarker testing to determine if the PBS requirements for cemiplimab relating to EGFR, ALK or ROS1 gene status are met.

 

 

The Amendment Determination will insert new item 73436 from 1 November 2022. The new item will provide Medicare funding for MET proto-oncogene, receptor tyrosine kinase (MET) exon 14 skipping alterations (METex14sk) testing in patients with locally advanced or metastatic NSCLC to determine eligibility for treatment with tepotinib under the PBS. METex14sk are a specific type of genetic variation that can result in faster tumour growth and patients with METex14sk commonly have a worse prognosis than those without these alterations. Tepotinib is a targeted drug that can improve health outcomes in patients who have METex14sk.

 

At its March 2022 meeting, the PBAC recommended the PBS listing of tepotinib for the treatment of patients with local advanced or metastatic MET exon 14 skipping alterations-positive NSCLC. MSAC had previously supported the creation of a new MBS item for METex14sk testing in patients with locally advanced or metastatic NSCLC to determine eligibility for tepotinib under the PBS at its November 2021 meeting.

 

Consultation

MSAC reviews new or existing medical services or technology, and the circumstances under which public funding should be supported through listing on the Medicare Benefits Schedule (MBS). This includes the listing of new items, or amendments to existing items on the MBS.

 

During the MSAC process, letters of support for the listing of a new item for METex14sk testing in patients with NSCLC were received from Rare Cancers Australia and Genomics for Life.

 

The Department did not consult on the changes to items 73337, 73341 and 73344 as this is a minor change to replace a specific PBS listed drug name with a generic term for the class of PBS listed drug and considered to be minor in nature.

 

Details of the Amendment Determination are set out in the Attachment.

The Amendment Determination commences on 1 November 2022.

 

The Amendment Determination is a legislative instrument for the purposes of the Legislation Act 2003.

          

 

Authority:     Subsection 3C(1) of the

                                                                                Health Insurance Act 1973

 

 

 

 

 


ATTACHMENT

 

Details of the Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022

 

Section 1 – Name

 

Section 1 provides for the Amendment Determination to be referred to as the Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022.

 

Section 2 – Commencement

 

Section 2 provides that the Amendment Determination commences on 1 November 2022.

 

Section 3 – Authority

 

Section 3 provides that the Amendment Determination is made under subsection 3C(1) of the Health Insurance Act 1973.

 

Section 4 – Schedules

 

Section 4 provides that each instrument that is specified in a Schedule to this Amendment Determination is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Amendment Determination has effect according to its terms.

 

Schedule 1 – Amendments

 

Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018

 

Amendment item 1 amends items 73337, 73341 and 73344 to replace the reference to the specific drug ‘pembrolizumab’ with a general reference to ‘immunotherapy’. This change will enable Medicare benefits to be payable for biomarker testing for the evaluation of the absence of EGFR, ALK or  ROS1 to determine patient eligibility for treatment with a PBS listed immunotherapy drug, such as cemiplimab or pembrolizumab.

 

Amendment item 2 inserts item 73436, which is for METex14sk testing in patients with locally advanced or metastatic NSCLC to determine eligibility for treatment with tepotinib under the PBS. This new item will allow Medicare benefits to be payable for METex14sk testing in patients with locally advanced or metastatic NSCLC to determine eligibility for treatment with tepotinib under the PBS.   

 

 

 

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022

 

This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Determination

 The purpose of the Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022 (the Amendment Determination) is to amend the Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018 (Co-Dependent Pathology Services Determination). Under this Amendment Determination, three existing items (73337, 73341 and 73344) will be amended and one new item (73436) will be inserted.

 

From 1 November 2022, the Amendment Determination will amend existing items 73337, 73341 and 73344 to replace the reference to the specific drug ‘pembrolizumab’ with a more general reference to ‘an immunotherapy’ which will cover pembrolizumab, other Pharmaceutical Benefits Scheme (PBS) listed immunotherapies and future listed drugs. This enables Medicare benefits to be payable for biomarker testing for the evaluation of the absence of epidermal growth factor receptor (EGFR), anaplastic lymphoma kinase (ALK) or ROS proto-oncogene (ROS1) to determine patient eligibility for treatment with a PBS listed immunotherapy drug, such as cemiplimab or pembrolizumab. Cemiplimab and pembrolizumab, are immunotherapy drugs that are used to treat a number of cancers.

 

In November 2021, the Pharmaceutical Benefits Advisory Committee (PBAC) recommended the listing of cemiplimab for the treatment of patients with previously untreated metastatic nonsmall cell lung cancer (NSCLC) with a Programmed Death-Ligand 1 (PD-L1) tumour proportion score greater than or equal to 50 per cent. At its November 2021 meeting, the Medical Services Advisory Committee (MSAC) supported public funding for PD-L1 testing in patients diagnosed with NSCLC in alignment with PBAC’s decision to list cemiplimab on the PBS.

 

The Amendment Determination will insert new item 73436 from 1 November 2022. The new item will be listed for METex14sk testing in patients with locally advanced or metastatic NSCLC to determine eligibility for treatment with tepotinib under the PBS. METex14sk are a specific type of genetic variation that can result in cancer growth. Patients with METex14sk commonly have a worse prognosis than those without these alterations. tepotinib is a targeted drug that can improve health outcomes in patients who have METex14sk.

 

At its March 2022 meeting, the PBAC recommended the listing of tepotinib for the treatment of patients with local advanced or metastatic MET exon 14 skipping alterations-positive NSCLC. MSAC had previously supported the creation of a new Medicare Benefits Schedule (MBS) item for METex14sk testing in patients with locally advanced or metastatic NSCLC to determine eligibility for tepotinib under the PBS at its November 2021 meeting.

 

 

 

Human rights implications

This instrument engages Articles 9 and 12 of the International Covenant on Economic Social and Cultural Rights (ICESCR), specifically the rights to health and social security.

The Right to Health

The right to the enjoyment of the highest attainable standard of physical and mental health is contained in Article 12(1) of the ICESCR. The UN Committee on Economic Social and Cultural Rights (the Committee) has stated that the right to health is not a right for each individual to be healthy, but is a right to a system of health protection which provides equality of opportunity for people to enjoy the highest attainable level of health.

The Committee reports that the ‘highest attainable standard of health’ takes into account the country’s available resources. This right may be understood as a right of access to a variety of public health and health care facilities, goods, services, programs, and conditions necessary for the realisation of the highest attainable standard of health.

The Right to Social Security

The right to social security is contained in Article 9 of the ICESCR. It requires that a country must, within its maximum available resources, ensure access to a social security scheme that provides a minimum essential level of benefits to all individuals and families that will enable them to acquire at least essential health care. Countries are obliged to demonstrate that every effort has been made to use all resources that are at their disposal in an effort to satisfy, as a matter of priority, this minimum obligation.

The Committee reports that there is a strong presumption that retrogressive measures taken in relation to the right to social security are prohibited under ICESCR. In this context, a retrogressive measure would be one taken without adequate justification that had the effect of reducing existing levels of social security benefits, or of denying benefits to persons or groups previously entitled to them. However, it is legitimate for a Government to re-direct its limited resources in ways that it considers to be more effective at meeting the general health needs of all society, particularly the needs of the more disadvantaged members of society.

The right of equality and non-discrimination

The rights of equality and non-discrimination are contained in articles 2, 16 and 26 of the International Covenant on Civil and Political Rights (ICCPR).  Article 26 of the ICCPR requires that all persons are equal before the law, are entitled without any discrimination to the equal protection of the law and in this respect, the law shall prohibit any discrimination and guarantee to all persons equal and effective protection against discrimination on any ground such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

Analysis

This instrument advances the existing rights to health, the right to social security and the right of equality and non-discrimination by providing patients diagnosed with locally advanced or metastatic NSCLC access to Medicare benefits for METex14sk testing to gain access to tepotinib, which is a targeted drug that can improve health outcomes in patients who have METex14sk alterations, under the PBS.

 

This instrument also amends three items to replace the reference to a specific PBS immunotherapy drug, pembrolizumab, with a general reference to ‘an immunotherapy’. This change will enable Medicare benefits to be payable for biomarker testing for the evaluation of the absence of EGFR, ALK or ROS1 to determine patient eligibility for treatment with a PBS listed immunotherapy drug, such as cemiplimab or pembrolizumab. Cemiplimab and pembrolizumab, are immunotherapy drugs that are used to treat a number of cancers. 

 

Conclusion

This instrument is compatible with human rights as it advances the right to health, the right to social security and the right of equality and non-discrimination.

 

 

Nigel Murray

Assistant Secretary

MBS Policy and Specialist Services

Medical Benefits Division

Department of Health and Aged Care

 

Overview

The Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022 was enacted to amend the Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018 under subsection 3C(1) of the Health Insurance Act 1973. The purpose of this Amendment Determination is to modify existing items in the pathology services table to allow for broader eligibility for Medicare benefits under the Pharmaceutical Benefits Scheme (PBS). Specifically, it replaces the reference to a specific drug, pembrolizumab, with a more general term, 'an immunotherapy', to cover other PBS-listed immunotherapies and future drugs, thereby enabling Medicare benefits for biomarker testing. Furthermore, the Amendment Determination introduces a new item for MET proto-oncogene, receptor tyrosine kinase (MET) exon 14 skipping alterations (METex14sk) testing, facilitating access to tepotinib, a targeted drug for patients with METex14sk alterations. This change ensures that patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) can benefit from improved health outcomes through targeted treatments. The Amendment Determination is a legislative instrument for the purposes of the Legislation Act 2003 and was made by the Minister for Health under the authority of the Health Insurance Act 1973. It is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, advancing the rights to health, social security, and equality and non-discrimination.

Scope and Application

The Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022 applies to the amendment of specific pathology services under the Health Insurance Act 1973, with changes taking effect from 1 November 2022. This legislative instrument pertains to the Medicare Benefits Schedule (MBS) and is applicable nationally across Australia. The Amendment Determination modifies existing items and introduces a new item related to pathology services, specifically targeting the treatment of certain cancers by ensuring that patients have access to Medicare benefits for particular biomarker tests. The amendments cover the treatment of patients with non-small cell lung cancer (NSCLC) by enabling Medicare benefits for tests that determine eligibility for specific cancer drugs listed on the Pharmaceutical Benefits Scheme (PBS). These changes ensure that the MBS reflects current medical practices and the availability of new treatments, providing a broader scope of coverage for immunotherapy drugs and specific genetic testing related to cancer treatment. The Determination does not specify any exclusions or exemptions but relies on the broader regulatory framework set out in the Health Insurance Act 1973 and related regulations.

Key Provisions

The main operative sections of the Health Insurance (Section 3C Co-Dependent Pathology Services) Amendment Determination (No. 6) 2022 (Amendment Determination) are sections 4 and Schedule 1. Section 4 stipulates that the Amendment Determination will amend existing items 73337, 73341, and 73344 in the Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018 to replace the reference to the specific drug ‘pembrolizumab’ with a more general reference to ‘immunotherapy’. This amendment will enable Medicare benefits to be payable for biomarker testing for the evaluation of the absence of epidermal growth factor receptor (EGFR), anaplastic lymphoma kinase (ALK) or ROS proto-oncogene (ROS1) to determine patient eligibility for treatment with a Pharmaceutical Benefits Scheme (PBS) listed immunotherapy drug, such as cemiplimab or pembrolizumab. Additionally, Schedule 1 introduces new item 73436, which will provide Medicare funding for MET proto-oncogene, receptor tyrosine kinase (MET) exon 14 skipping alterations (METex14sk) testing in patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) to determine eligibility for treatment with tepotinib under the PBS. The Amendment Determination imposes specific obligations on the parties it governs. It requires healthcare providers, pathology services, and patients to comply with the new and amended items in the Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018. Healthcare providers must ensure that biomarker testing is conducted for patients with locally advanced or metastatic NSCLC to determine eligibility for treatment with PBS listed immunotherapy drugs, such as cemiplimab or pembrolizumab. Pathology services must update their billing practices to reflect the new and amended items. Patients must be informed of their eligibility for Medicare benefits for biomarker testing under the amended and new items. The Amendment Determination does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, any non-compliance with the new and amended items in the Health Insurance (Section 3C Co-Dependent Pathology Services) Determination 2018 could potentially lead to legal consequences. In general, breaches of Medicare regulations may result in financial penalties, legal action, or other administrative consequences. For example, healthcare providers who knowingly bill for services not covered by Medicare could face financial penalties, legal action, or exclusion from the Medicare program. Similarly, pathology services that fail to comply with the new and amended items could face financial penalties or legal action. Patients who knowingly provide false information to obtain Medicare benefits could face legal consequences. However, the exact penalties for non-compliance are not specified in the Amendment Determination itself and would likely be determined by the relevant Medicare regulations and administrative procedures.

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