National Health Act 1953 - Amendment Special Arrangements under subsection 100(1) - Highly specialised drugs program (No. PB 73 of 2007)

Administered by Department of Health, Disability and Ageing

Legislation au F2007L03624 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

ARRANGEMENTS UNDER SECTION 100

HIGHLY SPECIALISED DRUGS PROGRAM

No. PB 73 of 2007

 

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 53 of 2007) which came into effect on 1 August 2007.  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 October 2007, was made on 6 September 2007.

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 October 2007.

Paragraph 2:  provides that Schedule 1 amends PB 53 of 2007.

Schedule 1: provides for the following amendments: 

 

SUMMARY OF CHANGES

 

Amendment of paragraph 14 to allow Infliximab to be prescribed for the treatment of patients with refractory Crohn’s disease.

 

SCHEDULE 1

Alteration of Circumstances

Infliximab

[additional availability for the treatment of patients with refractory Crohn’s disease]

 

 

SCHEDULE 2

Deletion of Brands

Clozapine

Tablet 25 mg (CloSyn)

 

Tablet 100 mg (CloSyn)

 

 

 

 

Overview

The National Health Act 1953, enacted by the Parliament of Australia, serves as the legislative foundation for the Pharmaceutical Benefits Scheme (PBS). The PBS aims to ensure Australians have reliable, timely, and affordable access to a broad range of medicines. One of the key provisions of the Act, section 100, allows for special arrangements to be made to ensure an adequate supply of pharmaceutical products, particularly for those living in isolated areas or receiving treatment under circumstances where the standard PBS provisions are inadequate. The Highly Specialised Drugs Program, governed by these arrangements, is designed to ensure that highly specialised drugs are available to patients receiving treatment in private hospitals as non-admitted, day admitted, or discharge patients. The explanatory statement outlines amendments to the Highly Specialised Drugs Program, which were implemented to better cater to the needs of patients requiring treatment with highly specialised drugs, reflecting the policy objective of enhancing accessibility and adequacy of pharmaceutical benefits under specific medical conditions.

Scope and Application

The National Health Act 1953 governs the Pharmaceutical Benefits Scheme (PBS), through which the Commonwealth provides access to medicines for all Australians. The Act applies to all persons and entities within the Commonwealth's jurisdiction, particularly those involved in the provision and administration of pharmaceutical benefits. The Act's scope extends nationally, with the Pharmaceutical Benefits Advisory Committee (PBAC) playing a key role in recommending which drugs and medicinal preparations should be listed under the PBS. Certain drugs and preparations may be made available under special arrangements outlined in the Act, such as the Highly Specialised Drugs Program, which provides an adequate supply of special pharmaceutical products to persons in isolated areas or those receiving specific medical treatments. The Act allows the Minister to make, vary, or revoke these special arrangements. The Highly Specialised Drugs Program specifically targets individuals receiving treatment with highly specialised drugs at private hospitals, ensuring that these patients have access to necessary medications. This legislative instrument, which amends the previous arrangements made under the Act, came into effect on 1 October 2007, and includes changes such as allowing Infliximab to be prescribed for the treatment of patients with refractory Crohn’s disease.

Key Provisions

The key operative sections of the legislation (F2007L03624) focus on the Highly Specialised Drugs Program established under subsection 100(1)(b)(i) of the National Health Act 1953. This program aims to ensure that an adequate supply of special pharmaceutical products is available to individuals who are receiving medical treatment in circumstances where the Pharmaceutical Benefits Scheme (PBS) cannot efficiently or conveniently supply the necessary drugs. The Act allows the Minister to make arrangements for such special pharmaceutical products. Section 100(1) of the Act enables the Minister to create special arrangements for providing drugs to those living in isolated areas or receiving treatment where PBS benefits are inadequate or inefficient. Section 100(2) further empowers the Minister to vary or revoke these special arrangements. Section 100(3) stipulates that Part VII of the Act, which governs the PBS, operates subject to any special arrangements made under section 100(1). The Act imposes specific obligations on the parties involved, primarily the Minister for Health and Ageing, who is responsible for making and amending special arrangements under section 100. The Pharmaceutical Benefits Advisory Committee (PBAC), established under section 100A, plays a crucial role in recommending which drugs and medicinal preparations should be available as pharmaceutical benefits. This recommendation process is detailed under subsection 101(4) of the Act, which mandates that a drug or medicinal preparation cannot be declared under Part VII unless the PBAC has recommended it. Additionally, the Commonwealth/State Highly Specialised Drugs Working Party (HSDWP) makes recommendations to the PBAC regarding the suitability of certain drugs for listing under the Highly Specialised Drugs Program. The HSDWP considers funding and administrative aspects of supplying drugs through the hospital system. The legislation includes provisions for offences, penalties, and consequences for breaches, although the specific details of these are not explicitly stated in the provided text. Generally, breaches of provisions under the National Health Act 1953 can lead to both civil and criminal penalties. Civil penalties may include fines and other monetary sanctions, while criminal penalties could involve imprisonment or fines depending on the severity and nature of the breach. The maximum penalties are not detailed in the provided excerpt but would typically be outlined in the relevant sections of the Act or in associated regulations. Compliance with the Act is crucial to ensure the effective operation of the Highly Specialised Drugs Program and the broader PBS.

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