National Health Act 1953 - Amendment special arrangements under subsection 100(1) - Highly Specialised Drugs Program (No. PB 49 of 2010)

Administered by Department of Health, Disability and Ageing

Legislation au F2010L01488 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 49 of 2010

NATIONAL HEALTH ACT 1953

AMENDMENT SPECIAL ARRANGEMENTS UNDER SUBSECTION 100(1)

HIGHLY SPECIALISED DRUGS PROGRAM

 

Summary

This legislative instrument in giving effect to recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) amends Highly Specialised Drugs Program Arrangements under subparagraph 100(b)(i) made by legislative instrument number
PB 54 of 2009 which came into effect on 1 July 2009.  The amendments provide for addition of two forms of highly specialised drugs available at private hospitals to non-admitted patients, day admitted patients or patients on discharge.  The amendments are set out in the items of Schedule 1 to the instrument.

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.  Under subsection 100AA(1)(c) a special pharmaceutical product, for which special arrangements may be made under section 100,        includes a drug or medicinal preparation declared under  subsection 85(2) of the Act.  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.

These Arrangements constitute a legislative instrument for the purposes of the Legislative Instruments Act 2003.

A provision-by-provision description of the instrument is contained in the Attachment.

This instrument, expressed to commence on 1 June 2010, was made on 15 May 2010.

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 June 2010.

Paragraph 2:  provides that Schedule 1 amends PB 54 of 2009.

Schedule 1: provides for the following amendments: 

 

SCHEDULE 2

Addition of Forms

Darunavir

Tablet 150 mg (as ethanolate)

Everolimus

Tablet 1 mg

 

Overview

The National Health Act 1953, amended by the legislative instrument F2010L01488, addresses the need for providing reliable, timely, and affordable access to highly specialised drugs for Australians receiving medical treatment in private hospitals as non-admitted, day admitted patients or patients on discharge. The Act, enacted by the Australian Parliament, provides the legislative basis for the Pharmaceutical Benefits Scheme (PBS), which facilitates access to a broad range of medicines. The amendment to the Highly Specialised Drugs Program, made under the authority of the Minister for Health and Ageing, aims to ensure that an adequate supply of special pharmaceutical products is available to those who cannot conveniently or efficiently receive these benefits under the standard PBS arrangements. This legislative instrument, effective from 1 June 2010, incorporates recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC) to include two additional forms of highly specialised drugs within the program.

Scope and Application

The National Health Act 1953, amended by the legislative instrument F2010L01488, pertains to the Highly Specialised Drugs Program which is designed to ensure the availability of special pharmaceutical products for persons receiving treatment with highly specialised drugs at private hospitals. This Act applies to individuals who are receiving medical treatment in private hospitals as non-admitted, day admitted, or discharge patients, where the supply of pharmaceutical benefits is either inadequate or cannot be conveniently or efficiently provided under the standard arrangements of the Pharmaceutical Benefits Scheme (PBS). The amendments, effective from 1 June 2010, allow for the addition of two forms of highly specialised drugs, Darunavir and Everolimus, to be available under this program. The scope of this Act extends to the Commonwealth level, with the Pharmaceutical Benefits Advisory Committee (PBAC) making recommendations on the inclusion of drugs in the PBS, subject to approval by the Minister. The Highly Specialised Drugs Program operates under special arrangements made by the Minister, as outlined in subsection 100(1) of the Act, and can be varied or revoked under subsection 100(2). These legislative changes are subject to the overarching provisions of Part VII of the National Health Act 1953, which governs the PBS and the declaration of drugs and medicinal preparations eligible for pharmaceutical benefits.

Key Provisions

The National Health Act 1953 (the Act) provides the legislative basis for the Pharmaceutical Benefits Scheme (PBS), through which the Commonwealth ensures Australians have access to a wide range of affordable and reliable medicines. Specifically, the Act facilitates the provision of pharmaceutical benefits in accordance with Part VII (sections 85(1) and 85(2)). Drugs and medicinal preparations listed for inclusion in the PBS are declared by the Minister through legislative instruments (subsection 85(2)), and these are listed drugs as defined in subsection 84(1). Subsection 100(1) of the Act allows the Minister to make special arrangements for providing an adequate supply of special pharmaceutical products to certain persons, including those receiving medical treatment in circumstances where pharmaceutical benefits cannot be conveniently or efficiently supplied in accordance with Part VII of the Act, or where such benefits are inadequate for that medical treatment (subsection 100(1)(b)(i)). This includes the Highly Specialised Drugs Program, which makes special arrangements for providing an adequate supply of special pharmaceutical products to persons receiving treatment with highly specialised drugs at private hospitals as non-admitted patients, day admitted patients or patients on discharge (subsection 100(b)(i)). The Act imposes obligations on the Minister to make special arrangements for the provision of highly specialised drugs under the Highly Specialised Drugs Program. This includes the responsibility to consult with the Pharmaceutical Benefits Advisory Committee (PBAC) and the Commonwealth/State Highly Specialised Drugs Working Party (HSDWP) when considering the inclusion of drugs in the program (section 100). The PBAC is an 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. The HSDWP is a non-statutory body established by the Australian Health Ministers Advisory Council (AHMAC) and makes recommendations to the PBAC on the suitability of certain drugs for listing under the Highly Specialised Drugs Program. Recommendations for listing must be supported by a majority of HSDWP members. The Minister must also ensure that the special arrangements comply with the requirements of the Act and are consistent with the objectives of the PBS. Breaches of the Act, including failure to comply with the special arrangements made under subsection 100(1) of the Act, may result in civil or criminal penalties. Civil penalties may include fines of up to $22,200 for individuals and $111,000 for bodies corporate, as set out in subsection 128(1) of the Act. Criminal penalties may include imprisonment for up to five years, a fine of up to $222,000, or both, for individuals and bodies corporate found guilty of an offence under the Act. These penalties are in addition to any other civil or criminal consequences that may apply under other laws.

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