National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2018 (No. 12) (PB 112 of 2018)

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 2018 (No. 12)

PB 112 of 2018

 

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 Instrument, made under subsection 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 titled ‘Revised arrangements for the efficient funding of chemotherapy drugs’.  The 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 amendments to the Special Arrangement to reflect changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012), which commence on the same day.  The National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012) is made under sections 84AF, 84AK, 85, 85A, 88 and 101 of the Act.

A provision by provision description of this Instrument is contained in the 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).  The 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.  Part VII of the Act only applies to drugs or medicinal preparations recommended by the PBAC.  When recommending the listing of a medicine on the Pharmaceutical Benefits Scheme, the PBAC takes into account the medical conditions for which the medicine has been approved for use in Australia and its clinical effectiveness, safety and cost-effectiveness compared with other treatments.

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 these 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.

Pharmaceutical companies are consulted throughout the process for additions and changes to listings on the Pharmaceutical Benefits Scheme (PBS), including consultation through the PBAC process and agreement to final listing details.

It was considered that further consultation for this Instrument was unnecessary due to the nature of the consultation that has already taken place.

This Instrument commences on 1 January 2019.

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


ATTACHMENT

PROVISION-BY-PROVISION DESCRIPTION OF NATIONAL HEALTH (EFFICIENT FUNDING OF CHEMOTHERAPY) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2018 (No. 12)

Section 1 Name of Instrument

This section provides that the Instrument is the National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2018 (No. 12) and may also be cited as PB 112 of 2018.

Section 2 Commencement

This section provides that this Instrument commences on 1 January 2019.

Section 3 Amendment of National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (PB 79 of 2011)

This section provides that Schedule 1 amends the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (PB 79 of 2011).

Schedule 1 Amendments

The amendments in Schedule 1 of this Instrument provide for additions, deletions and changes to drugs, forms and circumstances for prescribing various pharmaceutical benefits (including authority requirements), as detailed in Schedules 1, 3 and 4 of the Special Arrangement.  These changes are summarised below.

SUMMARY OF CHANGES

Brand Name Change

Listed drug

Form

Brand Name

Fluorouracil

Injection 500 mg in 10 mL

From: Hospira Pty Limited

To: DBL Fluorouracil Injection BP

Alteration of Responsible Person Code

Listed Drug

Form

Brand Name

Responsible Person

Arsenic

Injection concentrate containing arsenic trioxide 10 mg in 10 mL

Phenasen

From: PL

To: FF

Addition of Responsible Person

Phebra Pty Ltd (FF)

Deletion of Responsible Person

The Trustee for Virgo Unit Trust (trading as Phebra) (PL)

Alteration of Responsible Person

From:

To:

AFT Pharmaceuticals Pty Ltd (AE)

AFT Pharmaceuticals (AU) Pty Ltd (AE)

 


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 2018 (No. 12)

(PB 112 of 2018)

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 subsection 100(2) of the National Health Act 1953 (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 titled ‘Revised arrangements for the efficient funding of chemotherapy drugs’.  The 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 provides for amendments to the Special Arrangement to ensure that the Special Arrangement accurately reflects changes 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.

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 the 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 Legislative Instrument is compatible with human rights because it advances the protection of human rights.

 

 

 

Natasha Ploenges

Assistant Secretary (Acting)

Pharmacy Branch

Technology Assessment and Access Division

Department of Health

Overview

The National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2018 (No. 12) was enacted to amend the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011, addressing the need for updated arrangements to ensure efficient funding of chemotherapy and related pharmaceutical benefits. This legislative instrument was made under subsection 100(2) of the National Health Act 1953, enabling the Minister to modify special arrangements for the supply of pharmaceutical benefits. The primary objective of this amendment is to align the Special Arrangement with changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, thereby ensuring consistency and accuracy in the provision of chemotherapy and related pharmaceutical benefits. This is achieved through a formal consultation process involving the Pharmaceutical Benefits Advisory Committee (PBAC), which provides recommendations to the Minister about which drugs and medicinal preparations should be available as pharmaceutical benefits. The PBAC comprises experts from various fields, ensuring a comprehensive and evidence-based approach to decision-making regarding the listing of medicines on the Pharmaceutical Benefits Scheme (PBS).

Scope and Application

The National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2018 (No. 12) amends the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 to reflect changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, ensuring that the efficient funding arrangements for chemotherapy pharmaceutical benefits and related pharmaceutical benefits align with the current list of approved medicines. The amendments pertain to changes in the drugs, forms, and circumstances for prescribing various pharmaceutical benefits, as well as alterations to the responsible persons for these drugs. The Instrument applies to the efficient funding of chemotherapy drugs, which are supplied to eligible patients being treated for cancer, and related pharmaceutical benefits supplied at certain public hospitals. It operates within the jurisdictional reach of the Commonwealth, under the authority of the National Health Act 1953. The amendments are effective from 1 January 2019 and do not introduce any exclusions or exemptions beyond those already established within the National Health Act and the Special Arrangement. The Instrument is compatible with human rights, as it facilitates access to essential medicines through the Pharmaceutical Benefits Scheme, thereby supporting the right to the highest attainable standard of physical and mental health.

Key Provisions

The National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2018 (No. 12) (the Instrument) amends the National Health (Efficient Funding of Chemotherapy) Special Arrangement 2011 (the Special Arrangement) to adjust the funding and supply of chemotherapy medicines and related pharmaceutical benefits. The primary changes are detailed in Schedule 1 of the Instrument, which modifies the Special Arrangement to reflect updates to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012. These changes include updates to brand names, responsible persons, and other relevant details of the listed drugs. The Instrument aims to ensure that the Special Arrangement accurately represents the current listings and requirements for the supply of chemotherapy medicines under the National Health Act 1953 (the Act). The Instrument imposes several obligations on the parties involved. Firstly, it mandates the accurate and timely updating of the Special Arrangement to align with changes in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012. This includes updating details such as brand names, responsible persons, and other specifications of the listed drugs. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a critical role in this process by providing recommendations on which drugs should be included in the Pharmaceutical Benefits Scheme (PBS). Additionally, pharmaceutical companies must comply with the new specifications and ensure that the listed drugs meet the required standards for supply under the Special Arrangement. Breach of the provisions of the Instrument can lead to various consequences. While the explanatory statement does not specify particular offences or penalties, breaches of the National Health Act 1953 or related instruments could result in legal actions, including fines and other penalties as stipulated in the Act. For instance, supplying medicines that do not comply with the Special Arrangement or the PBS could lead to enforcement actions by the Therapeutic Goods Administration (TGA). Moreover, failure to adhere to the changes mandated by the Instrument could affect the eligibility of patients for subsidised access to chemotherapy medicines, potentially impacting their treatment outcomes. In summary, the National Health (Efficient Funding of Chemotherapy) Special Arrangement Amendment Instrument 2018 (No. 12) makes necessary amendments to the Special Arrangement to ensure efficient and accurate funding and supply of chemotherapy medicines and related pharmaceutical benefits. It imposes obligations on relevant parties to update and comply with the new specifications. While specific penalties are not detailed in the explanatory statement, non-compliance with the Act or the Special Arrangement could result in significant legal and financial repercussions.

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