National Health Act 1953 - Amendment Special Arrangements under subsection 100(1) - Highly Specialised Drugs Program (No. PB 129 of 2008)

Administered by Department of Health, Disability and Ageing

Legislation au F2008L04640 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 129 of 2008

NATIONAL HEALTH ACT 1953

AMENDMENT SPECIAL ARRANGEMENTS UNDER SUBSECTION 100(1)

HIGHLY SPECIALISED DRUGS PROGRAM

 

Purpose and operation

Part VII of the National Health Act 1953 (the Act) is the legislative basis of the Pharmaceutical Benefits Scheme (PBS) by which the Commonwealth provides reliable, timely, and affordable access to a wide range of medicines for all Australians.

Subsection 85(1) provides that benefits are to be provided by the Commonwealth in accordance with Part VII in respect of pharmaceutical benefits.

Drugs and medicinal preparations to which Part VII applies are (with the exception of some medicinal preparations with additives) declared by the Minister by legislative instrument to be so under subsection 85(2). These are listed drugs as defined in subsection 84(1).

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 Highly Specialised Drugs Program is a set of Arrangements made under subparagraph 100(b)(i) of the Act for the purpose of providing that an adequate supply of special pharmaceutical products will be available to persons who are receiving treatment with highly specialised drugs at private hospitals as non-admitted patients, day admitted patients or patients on discharge.

This legislative instrument amends the Arrangements made under subparagraph 100(b)(i) (PB 120 of 2008) which came into effect on 1 December 2008.  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 2009, was made on 3 December 2008.

Consultations

The Pharmaceutical Benefits Advisory Committee (PBAC) is the independent expert body, established by section 100A of the Act, which makes recommendations to the Minister for Health and Ageing about which drugs and medicinal preparations should be available as pharmaceutical benefits.  Under subsection 101(4) of the Act, a drug or medicinal preparation may not be declared to be a drug or medicinal preparation to which Part VII of the Act applies unless the PBAC has recommended that it be so declared.  When recommending a medicine be listed 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.

PBAC members are selected 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.

The Commonwealth/State Highly Specialised Drugs Working Party (HSDWP) is a non-statutory body established by the Australian Health Ministers Advisory Council (AHMAC).  The HSDWP makes recommendations to the PBAC on the suitability of certain drugs for listing under the Highly Specialised Drugs Program.  The HSDWP considers the funding and administrative aspects of supply through the hospital system, and a recommendation for listing must be supported by a majority of Working Party members.  The HSDWP consists of representatives from State and Territory Health Departments and the Australian Private Hospitals Association, and is chaired by a representative of the Commonwealth Department of Health and Ageing.

 


ATTACHMENT

Paragraph 1:  provides that this instrument commences on 1 January 2009.

Paragraph 2:  provides that Schedule 1 amends PB 120 of 2008.

Schedule 1: provides for the following amendments: 

 

 

SCHEDULE 2

Alteration of Form

Ibandronic acid  From:

Concentrated injection for I.V. infusion 6 mg (as ibandronate sodium) in 6 mL

To:

Concentrated injection for I.V. infusion 6 mg (as ibandronate sodium monohydrate) in 6 mL

 

 

 

Overview

The National Health Act 1953 was enacted to provide a legislative foundation for the Pharmaceutical Benefits Scheme (PBS), ensuring Australians have reliable, timely, and affordable access to a broad range of medicines. The Act was introduced by the Parliament of Australia to address the need for a structured system to manage and subsidise medications within the country. The Highly Specialised Drugs Program, established under subsection 100(1) of the Act, aims to ensure that an adequate supply of special pharmaceutical products is available to individuals in isolated areas or those receiving medical treatment where conventional PBS provisions are inadequate. This program was enacted to cater specifically to the needs of patients requiring highly specialised drugs, ensuring they receive necessary treatments despite geographical or treatment-related challenges. The policy objective is to provide equitable access to life-saving and critical medications for all Australians, regardless of their location or specific medical circumstances.

Scope and Application

The National Health Act 1953, as amended, provides the legislative foundation for the Pharmaceutical Benefits Scheme (PBS), ensuring Australians have access to affordable and reliable medicines. Under this Act, the Commonwealth Minister for Health has the authority to make special arrangements for the provision of highly specialised drugs through the Highly Specialised Drugs Program, targeting individuals receiving treatment in isolated areas or those in circumstances where standard PBS provisions are inadequate. This Act applies to persons living in remote areas or receiving medical treatments where conventional pharmaceutical benefits under Part VII of the Act are impractical or insufficient. The geographical scope of this Act is national, impacting all jurisdictions within Australia. However, it does not extend to other territories outside Australia's national borders. The Act allows for the creation of subordinate instruments to further define and implement its provisions, ensuring flexibility in addressing emerging healthcare needs. This legislative framework ensures that Australians in need of highly specialised drugs receive the necessary support, subject to the criteria and amendments specified within the Act and its subordinate instruments.

Key Provisions

The key provisions of the legislation are set out in Part VII of the National Health Act 1953 (the Act), with particular focus on subsection 100(1) and Schedule 6. Subsection 100(1) allows the Minister to make special arrangements for the provision of pharmaceutical benefits, specifically tailored for those in isolated areas or receiving medical treatment where standard PBS provisions are inadequate (subsection 100(1)(a) and (b)). Schedule 6 lists drugs and medicinal preparations that may be provided under these special arrangements. The legislative instrument amends the previous arrangement (PB 120 of 2008) to update the list of drugs and their specifications, effective from 1 January 2009. The Act imposes several obligations on the parties involved. The Minister is responsible for making the special arrangements under subsection 100(1), which must be consistent with the broader objectives of the PBS. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a critical role by recommending drugs for inclusion on the PBS, considering factors such as clinical effectiveness, safety, and cost-effectiveness (subsection 101(4)). Additionally, the Commonwealth/State Highly Specialised Drugs Working Party (HSDWP) advises the PBAC on the suitability of drugs for the Highly Specialised Drugs Program, ensuring that funding and administrative aspects are adequately considered. Under the Act, breaches of the provisions related to the Highly Specialised Drugs Program can lead to various consequences. While specific offences and penalties are not detailed in the explanatory statement, breaches of the Act generally may result in civil or criminal penalties. For example, unauthorised supply of pharmaceutical benefits can attract significant fines, as stipulated in other sections of the National Health Act. The precise penalties would depend on the nature and severity of the breach, but they could include substantial fines and potential imprisonment for serious offences. The legislative instrument also outlines the consultation process involving the PBAC and HSDWP. The PBAC, composed of experts from various fields, ensures that recommendations are evidence-based and balanced. The HSDWP, comprising representatives from health departments and the private hospital sector, provides practical insights into the feasibility of drug inclusion in the Highly Specialised Drugs Program. This collaborative approach aims to ensure that the special arrangements are both clinically effective and administratively viable. Overall, the Act and its amendments seek to balance the need for specialised pharmaceutical treatments with the broader goals of the PBS, ensuring equitable access to essential medicines while catering to unique patient needs through targeted special arrangements.

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