National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 9) (PB 88 of 2017)

Administered by Department of Health, Disability and Ageing

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EXPLANATORY STATEMENT

 

NATIONAL HEALTH ACT 1953

 

NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM) SPECIAL ARRANGEMENT AMENDMENT INSTRUMENT 2017 (No. 9)

 

PB 88 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. 9) (the Amendment Instrument). The purpose of the Amendment 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 amendments made by this Instrument reflect amendments to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, which commence on the same day.

The amendments in PB 88 of 2017 include the addition of a new form of a listed drug and changes to the circumstances for prescribing for a number of listed drugs. 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. In addition, an industry nominee has been appointed to the PBAC membership. 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. Further consultation for this Instrument was considered unnecessary due to the nature of the consultation that had already taken place in the decision to list the medication.

Details of the instrument are set out in the Attachment.

This Instrument commences on 1 November 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 (No. 9)

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. 9). It can also be cited as PB 88 of 2017.

 

Section 2 Commencement

This section provides that this Instrument commences on 1 November 2017.

 

Section 3 Amendment

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

 

Schedule - Amendments

Item 1 Part 2, Division 4, Section 24(2)

Adds details of the maximum quantities applicable to the following CAR drugs:

Infliximab

Vedolizumab

 

Item 2 Part 2, Division 4, Section 25(2)

Adds details of the maximum number of repeats applicable to the following CAR drugs:

Infliximab

Vedolizumab

 

Items 3 to 23 Schedules 1 and 3

Items 3 to 23 provide for the addition of a new form of a listed drug and changes to the circumstances for prescribing for a number of listed drugs.

These changes are summarised below.

In addition several minor changes have been made to reflect the current listings in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (PB 71 of 2012).

 

 

SUMMARY OF CHANGES

 

Forms added

Baclofen

Intrathecal injection 40 mg in 20 mL

 

Addition/alteration of circumstances

Infliximab

Powder for I.V. infusion 100 mg

Vedolizumab

Powder for injection 300 mg


 

 

Overview

The National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 9) was enacted to amend the National Health (Highly specialised drugs program) Special Arrangement 2010, specifically to update the Highly Specialised Drugs (HSD) program. This amendment instrument was introduced to address changes in drug listings on the Pharmaceutical Benefits Scheme (PBS), as reflected in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012. The instrument was made under the authority of the National Health Act 1953 by the Minister for Health, with the policy objective of ensuring that the Special Arrangement remains aligned with the most recent amendments to the PBS. The changes include the addition of new forms of listed drugs and modifications to the prescribing conditions for several drugs, as recommended by the Pharmaceutical Benefits Advisory Committee (PBAC). The PBAC, an independent expert body, played a crucial role in consulting with various stakeholders, including pharmaceutical companies, to ensure the recommendations were well-informed and comprehensive. This amendment instrument commenced on 1 November 2017.

Scope and Application

The National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 9) amends the National Health (Highly specialised drugs program) Special Arrangement 2010 to adjust the supply of highly specialised drugs in Australia under the Pharmaceutical Benefits Scheme (PBS). This amendment applies to individuals and entities involved in the prescribing, dispensing, and administration of these drugs, particularly within the healthcare sector. The amendments are aligned with changes in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 and are effective from 1 November 2017. The amendments include modifications to the maximum quantities and repeats for certain drugs like Infliximab and Vedolizumab, and the addition of a new form of Baclofen. These changes ensure that the Highly Specialised Drugs (HSD) program remains current with the latest pharmaceutical listings and clinical recommendations. The Instrument operates nationally across Australia, reflecting the Commonwealth's role in regulating pharmaceutical benefits.

Key Provisions

The primary sections of the National Health (Highly specialised drugs program) Special Arrangement Amendment Instrument 2017 (No. 9) include the introduction of new forms of listed drugs and alterations to the prescribing conditions for certain drugs under the Highly Specialised Drugs (HSD) program. Specifically, Section 24(2) of Part 2, Division 4 now details the maximum quantities applicable to Infliximab and Vedolizumab, while Section 25(2) of the same division specifies the maximum number of repeats for these drugs (Section 3). Items 3 to 23 in the Schedule detail the addition of a new form of Baclofen, an intrathecal injection of 40 mg in 20 mL, alongside modifications to the prescribing conditions for Infliximab, Vedolizumab, and other listed drugs. These changes are aligned with updates to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 (Sections 3, Items 3 to 23). The Act imposes several obligations and requirements on the entities it governs. Firstly, it mandates that pharmaceutical benefits, including those under the HSD program, be supplied in accordance with the special arrangements outlined in the Act. The Minister, under Section 100(1), has the authority to make these special arrangements, which must be adhered to by all parties involved in the supply of these benefits. Additionally, Section 100(3) ensures that the provisions of Part VII of the Act and any instruments made for its purposes are subject to these special arrangements, thereby integrating them into the broader regulatory framework of the Act. Furthermore, the Pharmaceutical Benefits Advisory Committee (PBAC), established under Section 100A, plays a crucial role in recommending which drugs should be available as pharmaceutical benefits, taking into account clinical effectiveness, safety, and cost-effectiveness (Section 100A). There are potential civil and criminal consequences for non-compliance with the provisions of this Instrument. Offences under the National Health Act 1953 can lead to penalties, although the exact penalties are not detailed within this specific Instrument. The general penalty provisions under the Act may apply, where penalties can include fines and imprisonment, depending on the severity and nature of the offence. The maximum penalties would be in accordance with the broader legislative framework established by the National Health Act 1953 and any other relevant laws. Non-compliance with the special arrangements and the prescribing conditions specified in the Instrument can result in legal action being taken against the offending parties, potentially leading to significant financial and reputational consequences. The amendments made by this Instrument are designed to align with the recommendations of the PBAC and reflect the latest updates in the National Health (Listing of Pharmaceutical Benefits) Instrument 2012. The PBAC, through its rigorous consultation process and expert recommendations, ensures that the changes are evidence-based and consider the latest medical and economic data. Given the extensive consultation with pharmaceutical companies and the alignment with PBAC recommendations, further consultation for this Instrument was deemed unnecessary. The Instrument is set to commence on 1 November 2017, bringing these important amendments into effect and ensuring that the Highly Specialised Drugs program remains up-to-date with current medical practices and regulatory standards.

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