National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2016 (No. 4) (PB 34 of 2016)

Administered by Department of Health, Disability and Ageing

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (EFFICIENT FUNDING OF CHEMOTHERAPY) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2016 (No. 4)

PB 34 of 2016

 

Authority

Subsection 100(1) of the National Health Act 1953 (the Act) enables the Minister to make special arrangements for the supply of pharmaceutical benefits. 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) of the Act provides that Part VII of the Act, and instruments made for the purposes of Part VII, have effect subject to a special arrangement made under subsection 100(1). 

 

Purpose

The purpose of this legislative instrument, made under subsections 100(1) and 100(2) of the Act, is to amend the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (PB 79 of 2011) (the Special Arrangement), to make changes relating to the efficient funding of chemotherapy.

 

The Special Arrangement achieves greater efficiency in payment for the supply of injected or infused chemotherapy medicines (chemotherapy pharmaceutical benefits) to eligible patients being treated for cancer, to reflect the 2010 budget measure entitled ‘Revised arrangements for the efficient funding of chemotherapy drugs’. This Special Arrangement also relates to the supply of medicines associated with the side-effects of cancer and cancer treatment (related pharmaceutical benefits) at certain public hospitals.

 

This instrument makes changes to the pharmaceutical benefits available under the Special Arrangement for the efficient funding of chemotherapy. These changes reflect changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 made under sections 84AF, 84AK, 85, 85A, 88 and 101 of the Act, which commence on the same day.

 

This instrument:

  • adds new pharmaceutical benefit, ‘Bendamustine’, new brand ‘Ribomustin’, the associated circumstances maximum amounts and number of repeats; 
  • adds new pharmaceutical benefit, ‘Nivolumab’, new brand ‘Opdivo’, the associated circumstances maximum amounts and number of repeats; 
  • adds the brand ‘IRINOTECAN ACT’ and removes the brand ‘Tecan’ for the listed drug ‘Irinotecan’;
  • removes the brand ‘Fludara’ and adds the brand ‘Fludarabine ACT’ for the listed drug ‘Fludarabine’;
  • amends the circumstance codes, associated circumstances and purposes for the listed drugs ‘Paclitaxel, nanoparticle albuminbound’, ‘Pembrolizumab  and ‘Trastuzumab emtansine’;
  • removes the brand Ondaz and Ondaz Zydis for the listed drug Ondansetron;
  • remove the Responsible Person sanofiaventis Australia Pty Ltd (GZ).

Additionally, from 1 May 2016, the Department of Human Services will have an automated authority system which will enable authorised prescribers to seek and obtain authority approvals via their desktop software, in real time.  Changes to this instrument have been made to provide for the electronic authority approval. Section 22 (1A)  has been inserted to override out of date authority tags which appear in Schedule 4, column headed Authority Requirements - Part of Circumstances.  The override is necessary to allow for electronic authority methods. Technical amendments to sections 11 to 14 of the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012) have been made to allow authorised prescribers to submit details of a prescription by means of electronic communication to obtain an electronic authority.

 

A provision by provision description of this instrument is contained in Attachment.

 

Consultations

An ongoing and formal process of consultation in relation to matters relevant to the Special Arrangement includes the involvement of interested parties through the membership of the Pharmaceutical Benefits Advisory Committee (PBAC). PBAC is an independent expert body established by section 100A of the Act 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 PBAC, and that would enable them to contribute meaningfully to the deliberations of PBAC.  When recommending the listing of a medicine on the Pharmaceutical Benefits Scheme (PBS), 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.

 

On 15 January 2014 the Minister for Human Services endorsed a number of efficiency measures that was inclusive of the Automated PBS authority approvals measure.  Consultation with the Department of Human Services and the PBAC has occurred in relation to policy matters regarding the implementation of automated electronic authority decision making.

 

This instrument commences on 1 May 2016.

 

This instrument is a legislative instrument for the purposes of the Legislation Act 2003.

 

 

 

 

 

 

 

 

ATTACHMENT

PROVISION BY PROVISION DESCRIPTION OF THE NATIONAL HEALTH (EFFICIENT FUNDING OF CHEMOTHERAPY) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2016 (No. 4)

Section 1  Name of Instrument

This section provides that this Instrument is the National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2016 (No. 4) and that it may also be cited as PB 34 of 2016.

Section 2  Commencement

This section provides that this Instrument commences on 1 May 2016.

Section 3   Amendments to PB 79 of 2011

This section amends the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (PB 79 of 2011) (the Special Arrangement).

Item 1 and 2 inserts into section 22 (1) a new subsection (1A) and (2A), that allows for an authority approval to be obtained via electronic authority methods where ‘Compliance with Telephone Authority Required Procedures’ or ‘Compliance with Written or Telephone Authority Required Procedures’ was previously required.  That is, where a medicine is listed with the words ‘Compliance with Written or Telephone Authority Required procedures’ in schedule 3, column headed ‘Authority Requirements – Part of Circumstances’, it is intended that the prescriber may seek authority approval via an automated electronic approval process.

Item 3 inserts a new pharmaceutical benefit ‘Bendamustine’ into Schedule 1, Part 1 of the Special Arrangement by inserting a new listed drug ‘Bendamustine’ in the formsPowder for injection containing bendamustine hydrochloride 25 mg and ‘Powder for injection containing bendamustine hydrochloride 100 mgwith the manner of administration ‘Injection’ and brand ‘Ribomustin

 Item 4 amends the entry in Schedule 1 Part 1 of the Special Arrangement for the listed drug ‘Irinotecan’ in the form ‘I.V. injection containing irinotecan hydrochloride trihydrate 100 mg in 5 mL’ by adding the brand ‘IRINOTECAN ACT.

Item 5 amends the entry in Schedule 1 Part 1 of the Special Arrangement for the listed drug ‘Irinotecan’ in the form ‘I.V. injection containing irinotecan hydrochloride trihydrate 40 mg in 2 mL’ by adding the brand ‘IRINOTECAN ACT.

Item 6 amends the entry in Schedule 1 Part 1 of the Special Arrangement for the listed drug ‘Irinotecan’ in the form ‘I.V. injection containing irinotecan hydrochloride trihydrate 500 mg in 25 mL’ by adding the brand ‘IRINOTECAN ACT and removing the brand ‘Tecan’.

Item 7 inserts a new pharmaceutical benefit ‘Nivolumab’ into Schedule 1, Part 1 of the Special Arrangement by inserting a new listed drug ‘Nivolumab’ in the formsInjection concentrate for I.V. infusion 40 mg in 4 mL and ‘Injection concentrate for I.V. infusion 100 mg in 10 mLwith the manner of administration ‘Injection’ and brand ‘Opdivo’. 

Item 8 amends the entry in Schedule 1 Part 1 of the Special Arrangement for the listed drug ‘Paclitaxel, nanoparticle albuminboundby removing the circumstance code C3955’  and ‘C3956’ and associated circumstance and adding the new circumstance codes C4657’ ‘C6106’ and ‘C6119’ and the associated circumstance.

Item 9 amends the entry in Schedule 1 Part 1 of the Special Arrangement for the listed drug ‘Pembrolizumabby removing the circumstance code C5293’ ‘C5334’ ‘C5361’ ‘C5362’ and associated circumstance and adding the new circumstance codes C5362’ ‘C6093’ ‘C6094’ ‘C6103’ ‘C6104’ and the associated circumstance.

Item 10 amends the entry in Schedule 1 Part 1 of the Special Arrangement for the listed drug ‘Trastuzumab emtansineby removing the circumstance code C4987’ and associated circumstance and adding the new circumstance codes C6096’ and ‘C6129’ and the associated circumstance.

Item 11 inserts a new pharmaceutical benefit ‘Bendamustine’ into Schedule 1, Part 2 of the Special Arrangement by inserting a new listed drug ‘Bendamustine’ and the associated maximum amounts and number of repeats. 

Item 12 inserts a new pharmaceutical benefit ‘Nivolumab’ into Schedule 1, Part 2 of the Special Arrangement by inserting a new listed drug ‘Nivolumab’ and the purpose codes ‘P6070’ ‘P6083’ ‘P6095’ ‘P6116’ and ‘P6111’ and the associated maximum amounts and number of repeats. 

Item 13 amends the entry in Schedule 1 Part 2 of the Special Arrangement for the listed drug ‘Paclitaxel, nanoparticle albuminboundby adding the new purpose codes ‘P4657’ P6106’ and ‘P6119’ and the associated maximum amounts and number of repeats. 

Item 14 amends the entry in Schedule 1 Part 2 of the Special Arrangement for the listed drug ‘Pembrolizumabby removing the purpose codes ‘P5293’ ‘P5334’ ‘P5361’ and adding the new purpose codes ‘P6093’ ‘P6094’ ‘P6103’ and  ‘P6104’ and the associated maximum amounts and number of repeats. 

Item 15 amends the entry in Schedule 2 of the Special Arrangement for the listed drug ‘Ondansetron’ in the forms Tablet 4 mg (as hydrochloride dihydrate)’ and ‘Tablet 8 mg (as hydrochloride dihydrate)’ by removing the brand ‘Ondaz. 

Item 16 amends the entry in Schedule 2 of the Special Arrangement for the listed drug ‘Ondansetron’ in the forms Wafer 4 mg’ and ‘Wafer 8 mg’ by removing the brand ‘Ondaz Zydis. 

Item 17 amends the entry in Schedule 3 of the Special Arrangement by removing the responsible person sanofiaventis Australia Pty Ltd (GZ).

Item 18 inserts a new related pharmaceutical benefit ‘Bendamustine’ into Schedule 4 of the Special Arrangement by inserting a new listed drug Bendamustineand adding the new circumstances ‘C6075’ and ‘C6124’ and the associated circumstances.

Item 19 inserts a new related pharmaceutical benefit ‘Nivolumab’ into Schedule 4 of the Special Arrangement by inserting a new listed drug Nivolumaband adding the new circumstances ‘C6070’ ‘C6083’ ‘C6095’ ‘C6111’ and ‘C6116’ and the associated circumstances.

Item 20 amends the entry in Schedule 4 of the Special Arrangement for the listed drug ‘Paclitaxel, nanoparticle albumin-bound’ by removing the circumstance code ‘C3955 and ‘C3956 and the associated circumstances and adding the new circumstance codes C4657’ ‘C6106’ and ‘C6119’ and the associated circumstance.

Item 21 amends the entry in Schedule 4 of the Special Arrangement for the listed drug ‘Pembrolizumab’ by removing the circumstance code ‘C5293 C5334 C5361’ and C5362 and the associated circumstances and adding the new circumstance codes C5362 C6093 C6094 C6103 and ‘C6104and the associated circumstance.

Item 22 amends the entry in Schedule 4 of the Special Arrangement for the listed drug ‘Trastuzumab emtansine’ by removing the circumstance code ‘C4987 and the associated circumstance and adding the new circumstance codes ‘C6096’ and ‘C6129and the associated circumstance.

 

 

 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2013 (No. 4)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of this legislative instrument, made under subsections 100(1) and 100(2) of the Act, is to amend the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (PB 79 of 2011) (the Special Arrangement), to make changes to the special arrangement relating to the efficient funding of chemotherapy.

The Special Arrangement achieves greater efficiency in payment for the supply of injected or infused chemotherapy medicines (chemotherapy pharmaceutical benefits) to eligible patients being treated for cancer, to reflect the 2010 budget measure titled ‘Revised arrangements for the efficient funding of chemotherapy drugs’. This Special Arrangement also relates to the supply of medicines associated with the side-effects of cancer and cancer treatment (related pharmaceutical benefits) at certain public hospitals.

This Instrument:

  • adds 4 new listed brands for the listed drugs ‘Doxorubicin’, and ‘Gemcitabine’;
  • adds 1 new listed form for the listed drug ‘Aprepitant’;
  • removes 2 listed brands for the listed drug ‘Docetaxel’; and
  • adds new circumstance codes and the associated circumstances for  the listed drug ‘Aprepitant’.

Human rights implications

This legislative instrument engages Article 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

The Pharmaceutical Benefits Scheme (PBS) is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines. The recommendatory role of the Pharmaceutical Benefits Advisory Committee (PBAC) ensures that decisions about subsidised access to medicines on the PBS are evidence-based.

Conclusion

This Legislaive Instrument is compatible with human rights because it advances the protection ohuman rights.

 

Overview

The National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2016 (No. 4) is an instrument made under the National Health Act 1953, specifically under subsections 100(1) and 100(2), to amend the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011. The purpose of this instrument is to implement changes related to the efficient funding of chemotherapy, which aligns with the 2010 budget measure titled "Revised arrangements for the efficient funding of chemotherapy drugs." It aims to achieve greater efficiency in the payment for the supply of chemotherapy medicines and related pharmaceutical benefits at certain public hospitals. This legislative instrument reflects changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, and it introduces new pharmaceutical benefits, modifies existing brands and circumstances, and allows for electronic authority approvals starting from 1 May 2016. The enactment body responsible for this instrument is the Australian Parliament, and the overarching policy objective is to ensure efficient and effective funding mechanisms for cancer treatments and their associated side-effects, thereby enhancing access to essential medications under the Pharmaceutical Benefits Scheme.

Scope and Application

The National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2016 (No. 4) amends the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011, which was established under the National Health Act 1953 to enhance the efficiency of funding for the supply of injected or infused chemotherapy medicines, and related pharmaceutical benefits for the treatment of cancer. This legislative instrument applies to pharmaceutical benefits associated with the supply of chemotherapy drugs and related treatments, targeting entities involved in the pharmaceutical supply chain and healthcare providers in public hospitals who administer these treatments. It is applicable nationally, affecting entities and individuals across Australia who are involved in the provision or administration of chemotherapy drugs listed under the arrangement. The instrument introduces new pharmaceutical benefits, modifies existing brands and circumstance codes, and facilitates electronic authority approvals for prescribers. There are no specific exclusions or exemptions stated within the text; however, the changes are designed to streamline and modernise the funding and administration processes of chemotherapy treatments. This instrument, made under the authority of the National Health Act 1953, is effective from 1 May 2016 and includes provisions for further amendments through subordinate instruments, ensuring the arrangement can be updated to reflect changes in medical treatments and technological advancements.

Key Provisions

The main operative sections of this legislative instrument (section 2) amend the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (PB 79 of 2011) to reflect changes in the efficient funding of chemotherapy. This involves adding new pharmaceutical benefits and brands, amending circumstance codes, and updating authority requirements to allow for electronic approvals (section 3). The amendments include the addition of new drugs such as 'Bendamustine' and 'Nivolumab', updating the brands for existing drugs, and modifying circumstance codes for several listed drugs to ensure that the Special Arrangement remains aligned with current medical practices and technological advancements. The obligations imposed by this Act on the parties or entities it governs include ensuring that authorised prescribers comply with the updated authority requirements and circumstance codes when seeking approvals for chemotherapy medicines. These amendments aim to streamline the approval process, making it more efficient and accessible. The Department of Human Services is tasked with implementing the automated authority system, enabling real-time electronic approvals for authorised prescribers, thus ensuring that the changes are effectively integrated into practice. For breaches of the provisions outlined in this legislative instrument, specific penalties are not detailed within the explanatory statement. However, the National Health Act 1953 (the Act) provides a framework under which penalties and enforcement measures may be applied. Non-compliance with the requirements could lead to administrative actions, fines, or other penalties as prescribed under the Act. The Department of Human Services is responsible for monitoring compliance and taking appropriate action against entities that fail to adhere to the updated special arrangement provisions.

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