EXPLANATORY STATEMENT
INSTRUMENT NUMBER PB 5 OF 2008
NATIONAL HEALTH ACT 1953
AMENDMENT SPECIAL ARRANGEMENTS UNDER SUBSECTION 100(1)
CHEMOTHERAPY PHARMACEUTICALS ACCESS PROGRAM
Purpose and operation
The purpose of the Australian Pharmaceutical Benefits Scheme (PBS) is to provide timely, reliable and affordable access for the Australian community to necessary and cost-effective medicines.
The PBS is regulated by Part VII of the National Health Act 1953 (the Act), which provides for the supply of listed drugs and medicinal preparations as pharmaceutical benefits.
Subsection 85(1) of the Act provides that benefits shall be provided by the Commonwealth in accordance with Part VII of the Act in respect of pharmaceutical benefits.
Subsection 100(1) of the Act provides that the Minister may make special arrangements for providing that an adequate supply of special pharmaceutical products will be available to persons:
(a) who are living in isolated areas; or
(b) who are receiving medical treatment in such circumstances that pharmaceutical benefits:
(i) cannot be conveniently or efficiently supplied in accordance with Part VII of the Act; or
(ii) are inadequate for that medical treatment.
Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).
Subsection 100(3) provides that Part VII of the Act has effect subject to a special arrangement made under subsection 100(1).
The declaration made under subsection 85(2) of the Act sets out the drugs and medicinal preparations to which Part VII of the Act applies and the restrictions, if any, that apply to the prescribing of such drugs and medicinal preparations as pharmaceutical benefits. Schedule 6 of the declaration under subsection 85(2) lists those drugs and medicinal preparations that may be made available under arrangements provided for by section 100 of the Act.
The Chemotherapy Pharmaceuticals Access Program is a set of Arrangements made under subparagraph 100(b)(i) of the Act for the purpose of the supply of chemotherapy pharmaceuticals at public hospitals to non-admitted patients, day admitted patients and patients on discharge.
These Arrangements constitute a legislative instrument for the purposes of the Legislative Instruments Act 2003.
This legislative instrument in giving effect to recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) amends Chemotherapy Pharmaceuticals Access Program Arrangements under subparagraph 100(b)(i) made by legislative instrument number PB 93 of 2007 which came into effect on 1 December 2007, as amended. The amendments are set out in the items of Schedule 1 to the instrument.
A provision-by-provision description of the instrument is contained in the Attachment.
This instrument, expressed to commence on 1 January 2008, was made on 19 November 2007.
Consultations
The PBAC is an independent expert body established by section 100A which makes recommendations to the Minister about which drugs and medicinal preparations should be available as pharmaceutical benefits. PBAC members are appointed following nomination by prescribed organisations and associations from consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and specialists, with at least one member selected from each of those interests or professions. Remaining members are persons whom the Minister is satisfied have qualifications and experience in a field relevant to the functions of the PBAC, and that would enable them to contribute meaningfully to the deliberations of the PBAC. When recommending the listing of a medicine on the PBS, the PBAC takes into account the medical conditions for which the medicine has been approved for use in Australia, its clinical effectiveness, safety and cost-effectiveness compared with other treatments.
The public hospital pharmaceutical reforms provide Australian Government subsidised access to a range of cancer chemotherapy drugs, listed on the PBS, for day admitted and non-admitted public hospital patients within a clinical setting under the Chemotherapy Pharmaceutical Access Program. The pharmaceutical reforms are implemented by means of an agreement between the Australian Government and participating States through the Australian Health Care Agreements. To date, Victoria, Western Australian and Queensland are participating in the reforms.
ATTACHMENT
Paragraph 1: provides that this instrument commences on 1 January 2008.
Paragraph 2: provides that Schedule 1 amends PB 93 of 2007.
Schedule 1: provides for the following amendments:
SUMMARY OF CHANGES
SCHEDULE 1
Alteration of Circumstances
Pemetrexed
SCHEDULE 3
Items Added
Pemetrexed Powder for I.V. infusion 500 mg (as disodium heptahydrate) [for the treatment of patients with mesothelioma]
Overview
The National Health Act 1953, enacted by the Parliament of Australia, provides for the supply of listed drugs and medicinal preparations as pharmaceutical benefits through the Australian Pharmaceutical Benefits Scheme (PBS). The Act was amended to establish the Chemotherapy Pharmaceuticals Access Program, which was introduced to address the need for timely and efficient access to chemotherapy pharmaceuticals for patients in public hospitals. This program is implemented under the authority provided by subsection 100(1) of the Act, which allows for special arrangements to ensure adequate supply of special pharmaceutical products for patients in isolated areas or receiving medical treatment where the PBS does not provide sufficient or efficient access. The policy objective is to provide cost-effective and necessary medicines to the Australian community, ensuring that patients requiring chemotherapy have access to these treatments within a clinical setting. The Chemotherapy Pharmaceuticals Access Program is subject to the overarching provisions of Part VII of the Act and is overseen by the Pharmaceutical Benefits Advisory Committee, which makes recommendations to the Minister regarding the availability of pharmaceutical benefits.
Scope and Application
The Chemotherapy Pharmaceuticals Access Program, which is an arrangement under the National Health Act 1953, aims to ensure the supply of chemotherapy pharmaceuticals at public hospitals to non-admitted patients, day admitted patients and patients on discharge. This program falls under the authority of subsection 100(1) of the Act, allowing the Minister to make special arrangements to provide an adequate supply of special pharmaceutical products to persons in certain circumstances. Specifically, the program targets those living in isolated areas or receiving medical treatment where pharmaceutical benefits cannot be conveniently or efficiently supplied under the Act, or where such benefits are inadequate for the treatment. The Act's reach is national, as it involves the Commonwealth's regulation of pharmaceutical benefits, and is implemented through agreements between the Australian Government and participating States. The amendments to the Chemotherapy Pharmaceuticals Access Program, as outlined in Schedule 1 of the legislative instrument, modify the circumstances under which Pemetrexed is provided for the treatment of patients with mesothelioma. This legislative instrument, which commenced on 1 January 2008, amends previous arrangements made under legislative instrument number PB 93 of 2007.
Key Provisions
The main operative sections of the National Health Act 1953 Amendment Special Arrangements Under Subsection 100(1) Chemotherapy Pharmaceuticals Access Program (PB 5 of 2008) establish the framework for the provision of chemotherapy pharmaceuticals to certain patients under specific circumstances. Section 100(1) of the Act allows the Minister to make special arrangements for providing an adequate supply of special pharmaceutical products to individuals who live in isolated areas or are receiving medical treatment where pharmaceutical benefits cannot be conveniently or efficiently supplied under Part VII of the Act or are inadequate for their medical treatment. Section 100(3) clarifies that Part VII of the Act applies subject to any special arrangements made under section 100(1). Schedule 6 of the Act lists drugs and medicinal preparations that may be made available under these special arrangements.
The Act imposes specific obligations on the parties involved in the provision of chemotherapy pharmaceuticals under the Chemotherapy Pharmaceuticals Access Program. The Pharmaceutical Benefits Advisory Committee (PBAC) is tasked with making recommendations to the Minister regarding which drugs and medicinal preparations should be available as pharmaceutical benefits. The PBAC is an independent expert body composed of members with relevant qualifications and experience in various fields related to the functions of the PBAC. When recommending the listing of a medicine on the Pharmaceutical Benefits Scheme (PBS), the PBAC considers the medical conditions for which the medicine has been approved for use in Australia, its clinical effectiveness, safety, and cost-effectiveness compared to other treatments.
The Act also outlines the public hospital pharmaceutical reforms that provide Australian Government subsidised access to a range of cancer chemotherapy drugs listed on the PBS for day admitted and non-admitted public hospital patients within a clinical setting. These reforms are implemented through agreements between the Australian Government and participating states, with Victoria, Western Australia, and Queensland currently participating. The reforms aim to ensure that patients in need have timely and reliable access to necessary and cost-effective chemotherapy pharmaceuticals.
Under the Act, any breach of the obligations or requirements imposed on the parties could result in civil or criminal consequences. However, the specific offences, penalties, or consequences are not detailed in the explanatory statement. It is likely that any breaches would be subject to the general provisions of the National Health Act 1953 and any relevant state or territory legislation, which may include fines, imprisonment, or other penalties as prescribed by law. The maximum penalties would depend on the specific nature and severity of the breach.