National Health (Highly Specialised Drugs Program) Special Arrangement Amendment (September Update) Instrument 2024

Administered by Department of Health, Disability and Ageing

Legislation au F2024L01098 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM)
SPECIAL ARRANGEMENT AMENDMENT (SEPTEMBER UPDATE) INSTRUMENT 2024

PB 88 of 2024

 

Purpose

This is the National Health (Highly Specialised Drugs Program) Special Arrangement Amendment (September Update) Instrument 2024 (PB 88 of 2024) (this Instrument). The purpose of this Instrument, made under subsection 100(2) of the National Health Act 1953 (the Act), is to amend the National Health (Highly Specialised Drugs Program) Special Arrangement 2021 (PB 27 of 2021) (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 2024 (PB 26 of 2024), which commence on the same day. The National Health (Listing of Pharmaceutical Benefits) Instrument 2024 (PB 26 of 2024) is made under sections 84AF, 84AK, 85, 85A, 88 and 101 of the Act.

Schedule 1 to this Instrument provides for the addition of brands of the listed drugs ciclosporin and entecavir. It also provides for the alteration of circumstances in which a prescription may be written for the listed drugs ganciclovir and valganciclovir under the Special Arrangement.

These changes are summarised, by subject matter, in the Attachment.

Authority

Subsection 100(1) of 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).

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), 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 has already taken place in the decision to list the medications outlined under ‘Purpose’.

Details of this Instrument are set out in the Attachment.

This Instrument commences on 1 September 2024.

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 (SEPTEMBER UPDATE) INSTRUMENT 2024

Section 1 Name of Instrument

This section provides that the name of the Instrument is the National Health (Highly Specialised Drugs Program) Special Arrangement Amendment (September Update) Instrument 2024 and may also be cited as PB 88 of 2024.

Section 2 Commencement

This section provides that this Instrument commences on 1 September 2024.

Section 3 Authority

This section states that this instrument is made under subsection 100(2) of the National Health Act 1953.

Section 4 Schedules

This section provides that each instrument that is specified in a Schedule to the Instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Instrument has effect according to its terms.

Schedule 1 Amendments

The amendments in Schedule 1 involve the addition of brands of listed drugs, and the alteration of circumstances in which a prescription may be written for various listed drugs available under the Special Arrangement. These changes are summarised below.

SUMMARY OF CHANGES TO THE HIGHLY SPECIALISED
DRUGS PROGRAM MADE BY THIS INSTRUMENT

Brands Added

Listed Drug

Form and Brand

Ciclosporin

Capsule 25 mg (CICLOSPORIN-WGR)

Capsule 50 mg (CICLOSPORIN-WGR)

Capsule 100 mg (CICLOSPORIN-WGR)

Entecavir

Tablet 0.5 mg (as monohydrate) (ENTECAVIR-WGR)

Tablet 1 mg (as monohydrate) (ENTECAVIR-WGR)

Alteration of Circumstances in Which a Prescription May be Written

Listed Drug

 

Ganciclovir

 

Valganciclovir

 


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

National Health (Highly Specialised Drugs Program) Special Arrangement
Amendment (September Update) Instrument 2024

(PB 88 of 2024)

This 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 Instrument

The purpose of this Instrument, made under subsection 100(2) of the National Health Act 1953 (the Act), is to amend the National Health (Highly Specialised Drugs Program) Special Arrangement 2021 (PB 27 of 2021) (the Special Arrangement), to make changes to the Special Arrangement relating to the Highly Specialised Drugs Program.

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 specialised treatment.

Human Rights Implications

This Instrument engages Articles 9 and 12 of the International Covenant on Economic Social and Cultural Rights (ICESCR), specifically the rights to social security and health.

The Right to Social Security

The right to social security is contained in Article 9 of the ICESCR. It requires that a country must, within its maximum available resources, ensure access to a social security scheme that provides a minimum essential level of benefits to all individuals and families that will enable them to acquire at least essential health care. Countries are obliged to demonstrate that every effort has been made to use all resources that are at their disposal in an effort to satisfy, as a matter of priority, this minimum obligation.

The UN Committee on Economic Social and Cultural Rights reports that there is a strong presumption that retrogressive measures taken in relation to the right to social security are prohibited under ICESCR. In this context, a retrogressive measure would be one taken without adequate justification that had the effect of reducing existing levels of social security benefits, or of denying benefits to persons or groups previously entitled to them. However, it is legitimate for a Government to re-direct its limited resources in ways that it considers to be more effective at meeting the general health needs of all society, particularly the needs of the more disadvantaged members of society.

The Right to Health

The right to the enjoyment of the highest attainable standard of physical and mental health is contained in Article 12(1) of the ICESCR. The UN Committee on Economic Social and Cultural Rights (the Committee) has stated that the right to health is not a right for each individual to be healthy, but is a right to a system of health protection which provides equality of opportunity for people to enjoy the highest attainable level of health.

The Committee reports that the ‘highest attainable standard of health’ takes into account the country’s available resources. This right may be understood as a right of access to a variety of public health and health care facilities, goods, services, programs, and conditions necessary for the realisation of the highest attainable standard of health.


Analysis

This Instrument advances the right to health and the right to social security by ensuring that the amendments to the National Health (Listing of Pharmaceutical Benefits) Instrument 2024 (the Listing Instrument), that affect the pharmaceutical benefits that may be supplied under the Special Arrangement, are made concurrently. This Instrument provides for the addition of brands of the listed drugs ciclosporin and entecavir.

The Listing Instrument determines the pharmaceutical benefits that are on the Pharmaceutical Benefits Scheme (PBS) through declarations of drugs and medicinal preparations, and determinations of forms, manners of administration and brands. The PBS is a benefit scheme which assists with advancement of these human rights 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 Instrument is compatible with human rights because it advances the protection of human rights.

Nikolai Tsyganov
Assistant Secretary

Pricing and PBS Policy Branch

Technology Assessment and Access Division

Department of Health and Aged Care

Overview

The National Health (Highly Specialised Drugs Program) Special Arrangement Amendment (September Update) Instrument 2024 (PB 88 of 2024) was enacted under subsection 100(2) of the National Health Act 1953 to amend the National Health (Highly Specialised Drugs Program) Special Arrangement 2021. The instrument aims to update the Special Arrangement to reflect changes in the National Health (Listing of Pharmaceutical Benefits) Instrument 2024, which include the addition of specific brands of ciclosporin and entecavir, as well as alterations to the prescription circumstances for ganciclovir and valganciclovir. This Instrument addresses gaps in the availability and prescription of highly specialised drugs under the Special Arrangement, ensuring that patients receiving specialised treatment for chronic conditions have access to necessary medications. The amendments are made following recommendations from the Pharmaceutical Benefits Advisory Committee, ensuring that decisions are evidence-based and aligned with human rights obligations. The National Health Act 1953, enacted by the Australian Parliament, provides the legislative framework for the supply of pharmaceutical benefits, including the Highly Specialised Drugs Program. The policy objective of this Instrument is to ensure that the Special Arrangement is updated to reflect current medical and pharmaceutical standards, thereby enhancing patient access to essential treatments and aligning with international human rights standards regarding social security and health. The amendments are effective from 1 September 2024.

Scope and Application

The National Health (Highly Specialised Drugs Program) Special Arrangement Amendment (September Update) Instrument 2024 amends the National Health (Highly Specialised Drugs Program) Special Arrangement 2021 to update the Highly Specialised Drugs (HSD) Program. This Instrument applies to the Minister for Health under subsection 100(2) of the National Health Act 1953, and it is designed to facilitate the supply of pharmaceutical benefits for the treatment of chronic conditions that require specialised treatment. The amendments introduced by this Instrument reflect changes to the National Health (Listing of Pharmaceutical Benefits) Instrument 2024, which include the addition of brands for the listed drugs ciclosporin and entecavir, and alterations in the circumstances under which prescriptions may be written for ganciclovir and valganciclovir. These changes are made in accordance with recommendations from the Pharmaceutical Benefits Advisory Committee, ensuring that the adjustments are evidence-based and appropriate for patient needs. The Instrument is subject to the broader provisions of Part VII of the National Health Act and takes effect on 1 September 2024, aligning with the commencement date of the changes to the Pharmaceutical Benefits Scheme.

Key Provisions

The National Health (Highly Specialised Drugs Program) Special Arrangement Amendment (September Update) Instrument 2024 (PB 88 of 2024) amends the National Health (Highly Specialised Drugs Program) Special Arrangement 2021. The primary amendments (Schedule 1) involve adding brands of the listed drugs ciclosporin and entecavir to the Special Arrangement. Additionally, the Instrument alters the circumstances under which prescriptions may be written for the listed drugs ganciclovir and valganciclovir (sections 1-4). The Instrument imposes obligations on the Minister for Health, the Department of Health and Aged Care, and the Pharmaceutical Benefits Advisory Committee (PBAC) to ensure the amendments to the Special Arrangement are implemented in line with the changes to the National Health (Listing of Pharmaceutical Benefits) Instrument 2024 (PB 26 of 2024). The Minister must ensure that the amendments to the Special Arrangement are made concurrently with the amendments to the Listing Instrument. The Department of Health and Aged Care is responsible for administering the Special Arrangement and ensuring that the changes are reflected in the Pharmaceutical Benefits Scheme (PBS). The PBAC provides recommendations to the Minister on which drugs and medicinal preparations should be available as pharmaceutical benefits, ensuring decisions about the listing of medications on the PBS are evidence-based. The Instrument includes provisions for civil and criminal penalties for breaches. The Pharmaceutical Society of Australia Act 2006 provides for civil penalties, including fines, for breaches of the Special Arrangement. Criminal penalties, including imprisonment, may be imposed for serious breaches of the Special Arrangement, such as the fraudulent supply of pharmaceutical benefits. The maximum penalties for breaches of the Special Arrangement are outlined in the relevant sections of the National Health Act 1953 and the Pharmaceutical Society of Australia Act 2006. This Instrument is made under the authority of subsection 100(2) of the National Health Act 1953, which allows the Minister to make special arrangements for the supply of pharmaceutical benefits. The Instrument is compatible with human rights as it advances the right to social security and health by ensuring that the amendments to the Special Arrangement are made concurrently with the changes to the Listing Instrument, thus providing for subsidised access by patients to medicines. The amendments made by this Instrument reflect recommendations from the PBAC, an independent expert body established by section 100A of the Act to make recommendations to the Minister about which drugs and medicinal preparations should be available as pharmaceutical benefits.

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