National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 1) (PB 5 of 2017)

Administered by Department of Health, Disability and Ageing

Legislation au F2017L00066 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

NATIONAL HEALTH ACT 1953

 

NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2017 (No. 1)

 

PB 5 of 2017

 

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

This is the National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 1) (the Amending Instrument).  The purpose of the Amending Instrument is to amend the National Health (Highly specialised drugs program) Special Arrangement 2010 (PB 116 of 2010) (the Special Arrangement), to make changes to the Special Arrangement relating to the Highly Specialised Drugs (HSD) program.

The amendment made by this Instrument reflects amendments to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, which commence on the same day.

The amendments in PB 5 of 2017 include addition of quantity and repeat exceptions, adding and amending restrictions, removing pharmaceutical items, addition of a new pharmaceutical item, and amendments to the General statement for drugs for the treatment of hepatitis C. 

These changes are summarised, by drug name, in the Attachment.

A provision by provision Description of this instrument is contained in the Attachment.

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), 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.

Pharmaceutical companies were consulted throughout the process of changes to the listings on the PBS.  This includes consultation through the PBAC process.

Details of the instrument are set out in the Attachment.

This Instrument commences on 1 February 2017.

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


ATTACHMENT

Details of the National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017

PART 1 PRELIMINARY

Section 1 Name of Instrument
This section provides the name of this instrument as the National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 1).  It can also be cited as PB 5 of 2017.

 

Section 2 Commencement
This section provides that this instrument commences on 1 February 2017.

 

Section 3 Amendment
This section provides that the Schedule amends the National Health (Highly specialised drugs program) Special Arrangement 2010 (PB 116 of 2010).

 

SCHEDULE

 

Items 1 to 2    Section 24 and Section 25 

Items 1 to 2 add quantity and repeat exceptions for the listed drug ‘Riociguat’.

Items 3 to 36  Schedule 1 and Schedule 3  

Items 3 to 36 provide for adding and amending restrictions, removing pharmaceutical items and adding a new pharmaceutical item. 

 

Listed Drug

Type of Change

Ambrisentan, Bosentan, Eltrombopag, Epoprostenol, Iloprost, Infliximab, Macitentan, Omalizumab, Romiplostim, Sildenafil and Tadalafil

Remodelled restrictions

Lenalidomide, Peginterferon alfa-2a and Riociguat

New restrictions

Tacrolimus

Addition of pharmaceutical item

Ribavirin and peginterferon alfa-2a, Simeprevir and Valaciclovir

Deletion of pharmaceutical item

 

Item 37  Schedule 3 Part 1

Item 37 amends Schedule 3 Part 1 of the Special Arrangements by removing the listed drug ‘Ribavirin and peginterferon alfa-2a’ from the treatment regimen.

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The National Health Act 1953, as amended by the National Health (Highly Specialised Drugs Program) Special Arrangement Amendment Instrument 2017 (No. 1), was enacted to address the need for changes in the Highly Specialised Drugs (HSD) program. This legislative instrument, made under the authority of the Minister for Health, was introduced to align the HSD program with recent amendments to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012. The primary objective of the Amending Instrument is to reflect these changes in the Special Arrangement by modifying various aspects such as quantity and repeat exceptions, adding and amending restrictions, removing certain pharmaceutical items, and incorporating new pharmaceutical items, all of which are summarised in the attachment. The amendments were made in consultation with the Pharmaceutical Benefits Advisory Committee (PBAC), an independent expert body that recommends which drugs should be available as pharmaceutical benefits, ensuring the changes are in line with expert advice and stakeholder interests. The instrument commenced on 1 February 2017, serving to update the regulatory framework governing the Highly Specialised Drugs program within the National Health Act.

Scope and Application

The National Health (Highly Specialised Drugs Program) Special Arrangement Amendment Instrument 2017 (No. 1) amends the National Health (Highly Specialised Drugs Program) Special Arrangement 2010, introducing changes to the Highly Specialised Drugs (HSD) program. This instrument applies to the entities and persons involved in the supply of pharmaceutical benefits as outlined under the National Health Act 1953, specifically those entities and persons engaged in the provision of highly specialised drugs under the HSD program. The amendments reflect changes to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, which include adjustments to quantity and repeat exceptions, modifications to restrictions, removal and addition of pharmaceutical items, and amendments to the General statement for drugs used in the treatment of hepatitis C. The changes are applicable across Australia as the National Health Act operates on a Commonwealth level. Subordinate instruments may extend or restrict the application of this Act, subject to the provisions set out within the Act and this amending instrument.

Key Provisions

The National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 1) (the Amending Instrument) amends the National Health (Highly specialised drugs program) Special Arrangement 2010 (the Special Arrangement) to update the Highly Specialised Drugs (HSD) program. This involves modifying the pharmaceutical items covered under the program, as well as the restrictions and exceptions associated with their supply (Schedule, Items 1-37). These changes are designed to reflect the most recent amendments to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012. The Amending Instrument imposes specific obligations on the entities involved in the supply and administration of highly specialised drugs. For example, it mandates the addition of quantity and repeat exceptions for certain drugs like Riociguat (Schedule, Items 1-2), while also adding and amending restrictions for other drugs such as Ambrisentan, Bosentan, and Eltrombopag (Schedule, Items 3-36). Additionally, it requires the removal of certain pharmaceutical items, such as Ribavirin and peginterferon alfa-2a, from the treatment regimen (Schedule, Item 37). These changes are necessary to ensure the HSD program aligns with the latest pharmaceutical benefits listings. Failure to comply with the provisions of the Amending Instrument may result in legal consequences. Although the Act does not explicitly state penalties for non-compliance, breaches of similar provisions in the National Health Act 1953 can lead to criminal charges and fines. For instance, unauthorised supply of pharmaceutical benefits can result in a fine of up to $22,000 for an individual and $110,000 for a body corporate (National Health Act 1953, Section 109). Furthermore, the Act allows for the revocation of special arrangements in cases of non-compliance or if the arrangement is no longer in the public interest (National Health Act 1953, Section 100(2)). The Amending Instrument also emphasises the importance of consultation and expert input in the development of the HSD program. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a crucial role in recommending changes to the program, taking into account factors such as clinical effectiveness, safety, and cost-effectiveness. This ensures that the HSD program remains up-to-date and aligned with the latest medical evidence and best practices. Pharmaceutical companies are also consulted throughout the process, further ensuring that the program reflects the needs of both patients and healthcare providers.

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