National Health (Highly specialised drugs program for hospitals) Special Arrangement Amendment Instrument 2011 (No. 5) (No. PB 38 of 2011)

Administered by Department of Health, Disability and Ageing

Legislation au F2011L00893 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by Authority of the Minister for Health and Ageing

 

NATIONAL HEALTH ACT 1953

 

NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM FOR HOSPITALS) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2011 (No. 5)

 

PB 38 of 2011

Purpose

The purpose of this legislative instrument, made under subsections 100(1) and 100(2) of the National Health Act 1953 (the Act), is to amend the National Health (Highly specialised drugs program for hospitals) Special Arrangement 2010 (PB 116 of 2010) (the Special Arrangement), to make changes to the special arrangement relating to the highly specialised drugs program for hospitals.

The pharmaceutical benefits supplied under the Special Arrangement are for the treatment of chronic conditions which, because of their clinical use or other special features, may only be supplied to patients receiving treatment at or from a public or private hospital having access to appropriate specialised facilities.

Section 100 special arrangements and Part VII of the Act

Subsection 100(1) enables the Minister to make special arrangements for, or in relation to, providing that an adequate supply of pharmaceutical benefits will be available to persons:

(a)  who are living in isolated areas: or

(b) who are receiving treatment in circumstances in which generally available pharmaceutical benefits  are inadequate for that treatment; or

(c) if the pharmaceutical benefits covered by the arrangements can be more conveniently or efficiently supplied under the arrangements.

Subsection 100(3) provides that Part VII of the Act, and regulations and other legislative instruments made for the purposes of Part VII have effect subject to a special arrangement made under subsection 100(1).  A section 100 arrangement may thus modify the operation of Part VII, the regulations and other relevant instruments.

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

Changes to the Special Arrangement made by this Instrument

This instrument:

  • makes changes to the circumstances for which pharmaceutical benefits with the listed drug ‘Abatacept’, ‘Infliximab’, ‘Rituximab’ and ‘Tocilizumab’ are prescribed under this Special Arrangement;
  • adds a new pharmaceutical benefit with the drug ‘Sirolimus’;
  • makes changes to the pharmaceutical benefits for which an additional patient contribution that may be charged and to the amount which may be payable by the patient for the supply of those pharmaceutical benefits under this Special Arrangement.

 

Consultation

The amendments made by this Instrument accord with recommendations made by the Pharmaceutical Benefits Advisory Committee (PBAC). 

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 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.

Pharmaceutical companies were consulted throughout the process of changes to the prescribing circumstances for listings on the PBS and for this Instrument.  This includes consultation through the PBAC process, and agreement to final listing details.

General

This Instrument commences on 1 June 2011.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

 

PROVISION BY PROVISION DESCRIPTION OF THE NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM FOR HOSPITALS) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2011 (NO.5)

 

Section 1 Name of Instrument

This section provides that this Instrument is the National Health (Highly specialised drugs program for hospitals) Special Arrangement Amendment Instrument 2011 (No.5) and that it may also be cited as PB 38 of 2011.

Section 2 Commencement

This section provides that this Instrument commences on 1 June 2011.

Section 3 Amendments to PB 116 of 2010

This section provides that Schedule 1 amends the National Health (Highly specialised drugs program for hospitals) Special Arrangement 2010 (PB 116 of 2010) (the Principal Instrument).             

Schedule 1

Item 1 amends the entry in Schedule 1 of the Principal Instrument for the pharmaceutical benefit that has the listed drug ‘Abatacept’ to replace the circumstance codes ‘C3556’ and ‘C3557’ with the new circumstance codes ‘C3712’ and ‘C3713’.

Item 2 amends the entry in Schedule 1 of the Principal Instrument for the pharmaceutical benefit that has the listed drug ‘Infliximab’ to replace the circumstance codes ‘C3571’ and ‘C3581’ with the new circumstance codes ‘C3710’ and ‘C3711’.

Item 3 amends the entry in Schedule 1 of the Principal Instrument for the pharmaceutical benefit that has the listed drug ‘Rituximab’ to replace the circumstance codes ‘C3573’ and ‘C3582’ with the new circumstance codes ‘C3720’ and ‘C3721’.

Item 4 amends the entry in Schedule 1 of the Principal Instrument for ‘Sirolimus’ to add a new pharmaceutical benefit that has the listed drug ‘Sirolimus’, the form ‘Tablet 0.5 mg’, an ‘oral’ manner of administration and the brand ‘Rapamune (Pfizer Australia Pty Ltd)’.

Item 5 amends the entry in Schedule 1 of the Principal Instrument for pharmaceutical benefits that have the listed drug ‘Tocilizumab’ to replace the circumstance codes ‘C3559’ and ‘C3560’ with the new circumstance codes ‘C3716’ and ‘C3717’.

Item 6 amends the entry in Schedule 3 of the Principal Instrument for the listed drug ‘Abatacept’ to remove the circumstance codes ‘C3556’ and ‘C3557’ and the descriptions relating to these circumstance codes and to substitute the new circumstance codes ‘C3712’ and ‘C3713’ and descriptions relating to these new circumstance codes.

Item 7 amends the entry in Schedule 3 of the Principal Instrument for the listed drug ‘Infliximab’ to remove the circumstance code ‘C3571’ and the description relating to this circumstance code and to substitute the new circumstance code ‘C3710’ and a description relating to this new circumstance code.

Item 8 amends the entry in Schedule 3 of the Principal Instrument for the listed drug ‘Infliximab’ to remove the circumstance code ‘C3581’ and the description relating to this circumstance code and to substitute the new circumstance code ‘C3711’ and a description relating to this new circumstance code.

Item 9 amends the entry in Schedule 3 of the Principal Instrument for the listed drug ‘Rituximab’ to remove the circumstance codes ‘C3573’ and ‘C3582’ and the descriptions relating to these circumstance codes and to substitute the new circumstance codes ‘C3720’ and ‘C3721’ and descriptions relating to these new circumstance codes.

Item 10 amends the entry in Schedule 3 of the Principal Instrument for the listed drug ‘Tocilizumab’ to remove the circumstance codes ‘C3559’ and ‘C3560’ and the descriptions relating to these circumstance codes and to substitute the new circumstance codes ‘C3716’ and ‘C3717’ and descriptions relating to these new circumstance codes.

Item 11 substitute a new Schedule 4. Schedule 4 provides the relevant amounts used to work out the additional patient contribution for the purpose of Part 6 of the Principal Instrument. The effect of this new Schedule 4 is to remove a reference to one pharmaceutical benefit in Schedule 4 and to make changes to references to the approved ex-manufacturer price and the claimed ex-manufacturer price for some of the remaining pharmaceutical benefits listed in Schedule 4.

Overview

The National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement Amendment Instrument 2011 (No. 5) was enacted to amend the National Health (Highly specialised drugs program for hospitals) Special Arrangement 2010. The amendments address changes to the circumstances under which certain highly specialised drugs can be prescribed and supplied to patients in hospitals, as well as modifications to the patient contributions for these drugs. The instrument was enacted under subsections 100(1) and 100(2) of the National Health Act 1953, allowing the Minister for Health and Ageing to make special arrangements for the supply of pharmaceutical benefits where generally available benefits are inadequate for specific treatment circumstances. The policy objective of these amendments is to ensure an adequate supply of necessary pharmaceutical benefits for patients with chronic conditions who require treatment in hospitals, in line with recommendations from the Pharmaceutical Benefits Advisory Committee. The amendments were developed in consultation with the Pharmaceutical Benefits Advisory Committee and pharmaceutical companies, ensuring that the changes reflect clinical effectiveness, safety, and cost-effectiveness.

Scope and Application

The National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement Amendment Instrument 2011 (No. 5) amends the National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement 2010, which pertains to the supply of highly specialised pharmaceutical benefits to patients receiving treatment in hospitals. The amendment affects the listed drugs Abatacept, Infliximab, Rituximab, Tocilizumab, and introduces a new drug, Sirolimus, under the Special Arrangement. These drugs are prescribed for the treatment of chronic conditions requiring specialised facilities, available only in public or private hospitals. The amendment adjusts the circumstances for which these drugs can be supplied and modifies the additional patient contributions that may be charged for these pharmaceutical benefits. The changes are based on recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC) and involve consultation with pharmaceutical companies. The Instrument applies nationally and commences on 1 June 2011, modifying the operation of Part VII of the National Health Act 1953 and other related instruments in accordance with the special arrangement. This Instrument is made under the authority of the Minister for Health and Ageing and operates within the framework of the National Health Act 1953, specifically targeting the highly specialised drugs program for hospitals. The changes are designed to ensure an adequate supply of these pharmaceutical benefits is available to patients in need, while also considering cost-effectiveness and clinical efficacy. The amendments are subject to the broader provisions of the National Health Act and any relevant regulations or subordinate instruments, ensuring that the legislative changes are effectively implemented and enforced.

Key Provisions

The National Health (Highly specialised drugs program for hospitals) Special Arrangement Amendment Instrument 2011 (No. 5) amends the existing special arrangement related to highly specialised drugs provided to hospitals, which is detailed in the National Health (Highly specialised drugs program for hospitals) Special Arrangement 2010. The main changes introduced by this instrument (section 1) include modifications to the circumstances under which certain drugs can be prescribed and supplied to patients, as well as the addition of a new drug, Sirolimus, to the list of covered pharmaceuticals (section 2). This amendment involves updating the relevant codes and descriptions for drugs such as Abatacept, Infliximab, Rituximab, and Tocilizumab in Schedule 1 and Schedule 3 of the original special arrangement. The obligations imposed by this Act require that the Minister ensures that there is an adequate supply of pharmaceutical benefits for specific groups, including patients receiving treatment in circumstances where generally available pharmaceutical benefits are inadequate (subsection 100(1)). The special arrangement must comply with the overarching provisions of Part VII of the Act, which is subject to modification by any special arrangement made under subsection 100(1) (subsection 100(3)). The Minister has the authority to vary or revoke any special arrangement made under subsection 100(1) (subsection 100(2)). The Instrument mandates consultation with the Pharmaceutical Benefits Advisory Committee (PBAC) and other relevant stakeholders, such as pharmaceutical companies, to ensure that recommendations for changes to the special arrangement are based on clinical effectiveness, safety, and cost-effectiveness (section 2). The amendments made by this Instrument align with the recommendations of the PBAC, reflecting an ongoing and formal consultation process that includes the involvement of interested parties through the membership of the PBAC. Non-compliance with the provisions of the National Health Act 1953 and the special arrangement could lead to civil or criminal consequences. While the specific penalties are not detailed in the explanatory statement, breaches of health-related legislation in Australia typically incur fines and, in severe cases, imprisonment. The penalties vary depending on the nature and severity of the breach, but they can be substantial, reflecting the importance of ensuring the availability and appropriate use of highly specialised drugs for patients in need.

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