National Health (Highly specialised drugs program for hospitals) Special Arrangement Amendment Instrument 2011 (No. 6)

Administered by Department of Health, Disability and Ageing

Legislation au F2011L01221 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. 6)

 

PB 46 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:

  • inserts a new pharmaceutical benefit that has a new Complex Authority Required (“CAR”) drug;
  • inserts the maximum quantity, number of repeats and prescribing circumstances for pharmaceutical benefits with the new CAR drug;
  • inserts two new pharmaceutical benefits that have currently listed drugs; and
  • changes the responsible person for various pharmaceutical benefits.

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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 July 2011.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ATTACHMENT

 

PROVISION BY PROVISION DESCRIPTION OF THE NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM FOR HOSPITALS) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2011 (No.6)

 

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.6) and that it may also be cited as PB 46 of 2011.

Section 2 Commencement

This section provides that this Instrument commences on 1 July 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 definition of CAR drug in section 4 of the Principal Instrument to insert the new listed drug ‘Omalizumab’ in the list of CAR drugs.

Item 2 amends section 24 of the Principal Instrument to insert the maximum quantity of a pharmaceutical benefit with the new CAR drug ‘Omalizumab’ that may be supplied to a patient on one occasion.

Item 3 amends section 25 of the Principal Instrument to insert the maximum number of repeat supplies that may be authorised in a prescription for the supply of a pharmaceutical benefit with the new CAR drug ‘Omalizumab’.

Item 4 amends the entry in Schedule 1 of the Principal Instrument pharmaceutical benefits that have the listed drug ‘Interferon Alfa-2b to change the responsible person from ‘Schering-Plough Pty Limited’ to Merck Sharp & Dohme (Australia) Pty Ltd’.

Item 5 amends the entry in Schedule 1 of the Principal Instrument to add a new pharmaceutical benefit with the listed drug ‘Omalizumab’.

Item 6 amends the entry in Schedule 1 of the Principal Instrument for the pharmaceutical benefits that have the listed drug ‘Peginterferon Alfa-2b’ to change the responsible person from ‘Schering-Plough Pty Limited’ to ‘Merck Sharp & Dohme (Australia) Pty Ltd’.

Item 7 amends the entry in Schedule 1 of the Principal Instrument for the pharmaceutical benefits that have the listed drug ‘Ribarivin and Peginterferon Alfa-2b’ to change the responsible person from ‘Schering-Plough Pty Limited’ to ‘Merck Sharp & Dohme (Australia) Pty Ltd’.


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Item 8 amends the entry in Schedule 1 of the Principal Instrument for the pharmaceutical benefits that have the listed drug ‘Valaciclovir’ to add two new brands, Valaciclovir RBX and Valvala, and to amend the responsible person for the brand Zelitrex from ‘GlaxoSmithKline Australia Pty Ltd’ to ‘Aspen Pharma Pty Ltd’.

Item 9 amends Schedule 2 of the Principal Instrument to insert a new responsible person code (‘GM’) for the new responsible person ‘Aspen Pharma Pty Ltd’.

Item 10 amends Schedule 2 of the Principal Instrument to omit the responsible person code ‘RE’ for the responsible person GlaxoSmithKine Pty Ltd. This responsible person is now only represented by the code ‘GK’ in the Principal Instrument. Item 10 also insert a new responsible person code (‘RA’) for the new responsible person ‘Ranbaxy Australia Pty Ltd’.

Item 11 amends Schedule 3 of the Principal Instrument to insert an entry for pharmaceutical benefits that have the listed drug ‘Omalizumab’. This entry contains description of the circumstance codes ‘C3740’, ‘C3741’ ‘C3742’.

 

 

Overview

The National Health (Highly specialised drugs program for hospitals) Special Arrangement Amendment Instrument 2011 (No. 6) was enacted to amend the National Health (Highly specialised drugs program for hospitals) Special Arrangement 2010. This amendment was necessary to address issues related to the supply of highly specialised drugs for hospital treatment, particularly for chronic conditions requiring specialised facilities. The instrument was made under the authority of the Minister for Health and Ageing pursuant to subsections 100(1) and 100(2) of the National Health Act 1953. The primary policy objective of this amendment is to ensure an adequate supply of pharmaceutical benefits for patients receiving treatment in hospitals, particularly those in isolated areas or needing treatments not adequately covered by generally available pharmaceutical benefits. The amendments introduced by this instrument include the addition of a new Complex Authority Required (CAR) drug, changes to the maximum quantities and repeats for certain drugs, and adjustments to the responsible persons for various pharmaceutical benefits, all of which align with recommendations from the Pharmaceutical Benefits Advisory Committee.

Scope and Application

The National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement Amendment Instrument 2011 (No. 6) amends the National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement 2010, which pertains to the special arrangement for supplying highly specialised drugs to patients in hospitals. This special arrangement applies to patients receiving treatment in circumstances where generally available pharmaceutical benefits are inadequate. The changes made by this instrument introduce a new pharmaceutical benefit involving the Complex Authority Required (CAR) drug Omalizumab, update the maximum quantity and number of repeats for this drug, and introduce two new pharmaceutical benefits with currently listed drugs. Furthermore, it modifies the responsible parties for various pharmaceutical benefits, updating the responsible person for certain drugs from Schering-Plough Pty Limited to Merck Sharp & Dohme (Australia) Pty Ltd, and adding new responsible parties such as Aspen Pharma Pty Ltd and Ranbaxy Australia Pty Ltd. The instrument is issued under the authority of the Minister for Health and Ageing and is effective from 1 July 2011, operating within the framework of the National Health Act 1953. It adheres to the recommendations of the Pharmaceutical Benefits Advisory Committee, ensuring that the changes reflect an ongoing and formal consultation process involving relevant stakeholders.

Key Provisions

The National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement Amendment Instrument 2011 (No. 6) amends the National Health (Highly Specialised Drugs Program for Hospitals) Special Arrangement 2010. This amendment introduces a new Complex Authority Required (CAR) drug, Omalizumab, into the program (Schedule 1, Item 1). It specifies the maximum quantity of Omalizumab that may be supplied to a patient in one instance and the maximum number of repeat supplies that can be authorised in a prescription (Schedule 1, Items 2 and 3). Furthermore, the amendment changes the responsible parties for certain drugs and adds two new pharmaceutical benefits with listed drugs, Interferon Alfa-2b and Valaciclovir, and their brands (Schedule 1, Items 4-8). It also updates the responsible person codes to reflect changes in corporate entities (Schedule 1, Items 9-10) and introduces new circumstance codes for Omalizumab (Schedule 1, Item 11). The entities and individuals governed by this Act, particularly those involved in the pharmaceutical benefits program, must adhere to the changes outlined in the amendment. This includes complying with the new maximum supply limits for Omalizumab, updating their records to reflect the new responsible parties for specified drugs, and ensuring they are aware of the new circumstance codes for prescribing and supplying Omalizumab. Healthcare providers must also ensure that they have the necessary authority to prescribe CAR drugs like Omalizumab and understand the prescribing circumstances associated with these drugs as stipulated in the amendment. Failure to comply with the provisions of this amendment may result in civil or criminal consequences. While the specific penalties are not detailed in the explanatory statement, breaches of the National Health Act 1953 can potentially lead to fines and other legal repercussions. The penalties can vary depending on the nature and severity of the breach, with potential maximum penalties as stipulated under relevant sections of the Act. It is essential for all parties involved to be fully aware of and comply with the new requirements to avoid any legal issues.

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