National Health Act 1953 - Arrangements made under subparagraph 100(1)(b)(i) - Highly Specialised Drugs Program (No. PB 36 of 2007)

Administered by Department of Health, Disability and Ageing

Legislation au F2007L00941 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 36 of 2007

 

Purpose and operation

 

  1. 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.

 

2.       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.

 

3.       “Pharmaceutical benefit” is defined under subsection 84(1) of the Act as a drug or medicinal preparation in relation to which, by virtue of section 85 of the Act, Part VII of the Act applies.

 

4.       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.

 

5.       Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).

 

6.       Subsection 100(3) provides that Part VII of the Act has effect subject to a special arrangement made under subsection 100(1).

 

7.       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.

 

8.       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.

 

9.       These Arrangements amend Schedule 2 to the Principal Arrangements made on
12 March 2007 with effect from 1 April 2007 (No. PB 25 of 2007), in order to add Apomorphine Hydrochloride injection 20 mg in 2 mL with effect from 1 May 2007.

 

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

 

11.    Details of the amending Arrangements are set out in the Attachment.

 


Consultations

 

12.    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.

 

13.    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.

 

14.    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 these Arrangements commence on 1 May 2007.

 

Paragraph 2 provides that the Arrangements made on 12 March 2007, with effect from 1 April 2007 (No. PB 25 of 2007), are the Principal Arrangements and are amended by these Arrangements.

 

Paragraph 3 provides for the addition of a form of a highly specialised drug specified in Schedule 2 of the Principal Arrangements.

 

Overview

The National Health Act 1953, enacted by the Australian Parliament, establishes the framework for the Australian Pharmaceutical Benefits Scheme (PBS), aimed at ensuring the community has access to necessary and cost-effective medicines. This Act is instrumental in regulating the supply of listed drugs and medicinal preparations as pharmaceutical benefits, as outlined in Part VII. One of the key provisions of the Act, under section 100, empowers the Minister to create special arrangements for the supply of specific pharmaceutical products to individuals in isolated areas or those receiving medical treatments where conventional PBS provisions are inadequate. These special arrangements are designed to ensure that an adequate supply of necessary drugs is available under particular circumstances. The Highly Specialised Drugs Program, which operates under these special arrangements, particularly focuses on providing essential drugs to patients in private hospitals who are not admitted as inpatients, those admitted for a day, or patients on discharge, thus addressing a critical gap in the standard PBS provisions.

Scope and Application

The National Health Act 1953, specifically under the arrangements stipulated in section 100, pertains to the Highly Specialised Drugs Program, which is designed to ensure an adequate supply of special pharmaceutical products for individuals in isolated areas or those receiving medical treatments where conventional pharmaceutical benefits under Part VII of the Act are inadequate or inefficiently supplied. This encompasses patients receiving highly specialised drugs at private hospitals as non-admitted patients, day admitted patients, or patients on discharge. The Act applies to individuals in these specific circumstances and extends to any entities involved in the supply and administration of these pharmaceutical benefits, such as private hospitals and relevant medical practitioners. The geographic reach of these arrangements is national, as they are overseen by the Commonwealth government and involve coordination with state and territory health departments. However, the Act does not specify any exclusions or thresholds within the text provided. The application and scope of the Act can be extended or restricted through subordinate instruments, such as amendments to the Principal Arrangements, as demonstrated by the addition of Apomorphine Hydrochloride injection 20 mg in 2 mL to Schedule 2, effective from 1 May 2007. These arrangements constitute legislative instruments under the Legislative Instruments Act 2003.

Key Provisions

The Australian Pharmaceutical Benefits Scheme (PBS), regulated by Part VII of the National Health Act 1953 (the Act), aims to ensure Australians have access to necessary and cost-effective medicines. Under subsection 100(1) of the Act, the Minister can make special arrangements to ensure that an adequate supply of special pharmaceutical products is available to those in isolated areas or receiving medical treatment where standard provisions are inadequate or inefficient. The Highly Specialised Drugs Program is an example of such special arrangements, ensuring that highly specialised drugs are available to patients receiving treatment in private hospitals. The Act imposes several obligations on the parties involved in these arrangements. The Pharmaceutical Benefits Advisory Committee (PBAC), established under section 100A of the Act, plays a critical role by recommending drugs and medicinal preparations to be included as pharmaceutical benefits. This recommendation process takes into account the medical conditions for which the medicine is approved, its clinical effectiveness, safety, and cost-effectiveness. The PBAC comprises members from various relevant fields, including consumers, health economists, pharmacists, general practitioners, and specialists. Additionally, the Commonwealth/State Highly Specialised Drugs Working Party (HSDWP), although non-statutory, advises the PBAC on the suitability of certain drugs for the Highly Specialised Drugs Program by considering funding and administrative aspects. Failure to comply with the provisions of the Act can result in various consequences. Under the Act, there are specific offences and penalties for breaches, although the Explanatory Statement does not detail these explicitly. Generally, non-compliance with the PBS regulations can lead to administrative penalties, including fines and other financial penalties, as well as potential legal actions for violations of the Act. The exact penalties would depend on the nature and severity of the breach, and they could be enforced through civil or criminal proceedings, depending on the circumstances.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.