Home > MYEFO > Part 4: Fiscal Strategy and Outlook > Appendix A: Policy Decisions Taken Since the 2008‑09 Budget > Expenses Measures > Health and Ageing

Health and Ageing

Antenatal care for Indigenous women — increasing access

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	-	15.4	20.2	23.3

The Government will provide $108.4 million over five years (including $24.3 million in 2012‑13 and $25.3 million in 2013‑14) to facilitate improved access to antenatal care for Indigenous women. Payments to the states and territories will enable each jurisdiction to analyse local barriers to access and reform their service delivery arrangements to address these barriers. The funding will also enable jurisdictions to promote the importance of early antenatal care, provide incentives to health service providers to identify young Indigenous expectant mothers, and support young Indigenous women to make informed decisions about their sexual and reproductive health.

This measure will complement existing Commonwealth programs such as Healthy for Life, Health@Home, and Child and Maternal Health Services which aim to increase the availability and quality of child and maternal health services for Indigenous Australians.

This measure forms part of a National Partnership agreement with the States and Territories, which has been agreed by the Council of Australian Governments (COAG). Further information can be found in the COAG communiqué of 2 October 2008.

Health and Hospital Reform — additional places for the Prevocational General Practice Placement Program

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	-	-	-	-

The Government will provide an additional $7.5 million in 2008‑09 to increase the number of places available under the Prevocational General Practice Placement Program. The Prevocational General Practice Placement Program provides opportunities for junior doctors to gain clinical experience in primary care with the aim of encouraging them to take up general practice as a career. This measure will enable approximately 80 more places to be offered under the program in response to increased demand for these training positions. This measure will be funded under the 2008‑09 Budget measure Better Outcomes for Hospitals and Community Health.

Further information can be found in the press release of 22 September 2008 issued by the Minister for Health and Ageing.

Life Saving Drugs Program — funding for Elaprase® (idursulfase)

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	4.2	8.0	8.5	8.9

The Government will add Elaprase® (idursulfase) to the Life Saving Drugs Program for the treatment of Mucopolysaccharidosis Type II, from 1 December 2008, at an estimated cost of $29.6 million over four years.

Mucopolysaccharidosis Type II is an extremely rare life threatening enzyme deficiency disorder that progressively affects multiple organ systems and tissues. Elaprase® will be made available to those eligible under approved treatment guidelines. The Pharmaceutical Benefits Advisory Committee determined that Elaprase® was clinically effective but did not meet the necessary cost-effectiveness requirements to be listed on the Pharmaceutical Benefits Scheme.

The average cost per patient through the listing of Elaprase® on the Life Saving Drugs Program is approximately $636,500 per year.

Further information can be found in the press release of 29 August 2008 issued by the Minister for Health and Ageing.

Medicare Benefits Schedule — new and revised listings

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	9.6	13.4	13.9	14.3
Department of Veterans' Affairs	-	0.4	0.4	0.4	0.4
Medicare Australia	-	0.1	0.1	0.1	0.1
Total	-	10.1	13.9	14.4	14.8

The Government has added new and revised items to the Medicare Benefits Schedule and Veterans' benefits at an estimated cost of $53.1 million over four years. These changes include:

revised items for diagnosing and monitoring patients with colon, skin and ovarian cancer;
new items for diagnosing and monitoring patients at risk of developing breast cancer;
new items for diagnosing and monitoring patients receiving chronic hepatitis B viral treatment;
a new item for diagnosing and monitoring patients at risk of developing heart failure;
new and revised items for anaesthetists; and
revised items for providing temporary pain relief for cerebral palsy patients with foot deformities.

Further information is available in the summary of changes included in the 1 November 2008 Medicare Benefits Schedule issued by the Department of Health and Ageing.

National Breast Cancer Foundation — cohort study

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Cancer Australia	-	-	-	-	-

The Government will provide $2.5 million over five years (including $0.5 million in 2012‑13) to the National Breast Cancer Foundation to assist in the establishment of a national cohort study. The study will seek information from up to 100,000 Australian women to support a wide range of breast cancer projects, with the aim of reducing the impact of breast cancer in the community.

The funding for this measure will be managed by Cancer Australia. The cost will be met from within the existing resourcing of the Department of Health and Ageing.

Further information can be found in the press release of 1 October 2008 issued by the Minister for Health and Ageing.

National Immunisation Program — purchase of vaccines

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	2.2	0.3	-	-

The Government will provide $2.6 million over two years to change the way in which vaccines are purchased for distribution under the National Immunisation Program. Under the National Immunisation Program, the Australian Government provides funding to State and Territory governments for the purchase of vaccines listed on the National Vaccine Schedule. The state and territory governments arrange for these vaccines to be provided free of charge to eligible patients.

From 1 July 2009, under the new arrangements, the Commonwealth will purchase the vaccines centrally for distribution to the states and territories. The new arrangements are expected to generate savings in the medium term through competitive tendering for the supply of vaccines. Funding will be provided to the Department of Health and Ageing to enable it to implement the changes, including management of the tender process.

Organ and tissue donation — national plan to increase organ donation and save lives

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	17.4	37.7	39.0	40.4
Related capital ($m)
Department of Health and Ageing	-	1.9	-	-	-

The Government will provide $151.1 million over four years to increase the number of life-saving organ donation transplants in Australia. This comprehensive set of reforms includes establishing the Australian Organ and Tissue Donation and Transplantation Authority. The Australian Organ and Tissue Donation and Transplantation Authority, to be established on 1 January 2009, will coordinate clinicians and other hospital staff dedicated to organ and tissue donation in hospitals across Australia; oversee a new national network of state and territory organ and tissue donation agencies; lead ongoing community awareness programs about organ and tissue donation and transplantation; and work with clinicians and professional organisations in developing clinical practice protocols and standards. The package will also fund:

dedicated organ donation specialist doctors and other staff to work closely with emergency department and intensive care unit teams in selected public and private hospitals across Australia;
additional staffing, bed and infrastructure costs associated with organ donation in hospitals;
raising community awareness and building public confidence in organ donation and transplantation; and
counselling and support of potential donor families.

The new national reform package includes additional funding of $136.4 million over four years.

Further information can be found in the joint press release of 18 September 2008 issued by the Prime Minister, the Minister for Health and Ageing, and the Parliamentary Secretary to the Minister for Health and Ageing.

Pharmaceutical Benefits Scheme — changes to the administration of funding for Highly Specialised Drugs

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Medicare Australia	-	1.0	2.0	1.7	1.6
Department of Health and Ageing	-	-	-2.8	-8.0	-14.0
Total	-	1.0	-0.8	-6.3	-12.5
Related capital ($m)
Medicare Australia	-	1.1	0.2	-	-

The Government will provide $7.6 million over four years to Medicare Australia to introduce and administer a new payment system for claims under the Highly Specialised Drugs Program. This measure is expected to provide net savings of $17.2 million over four years as a result of increased compliance for the prescribing of medications and correct application of patient co-payments made possible through Medicare Australia's online processing, allowing real time patient eligibility checking.

Currently a majority of claims for the use of highly specialised drugs by public hospitals are submitted via state and territory governments to the Australian Government. From 1 July 2009, under the new arrangements both public and private hospitals will directly submit claims to the Australian Government through Medicare Australia.

Pharmaceutical Benefits Scheme — extension of access to the safety net to include couples separated by illness

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	0.1	1.0	1.0	1.0
Department of Veterans' Affairs	-	..	0.1	0.1	0.1
Total	-	0.1	1.1	1.1	1.1

The Government will provide $3.4 million over four years to extend joint access to the Pharmaceutical Benefits Scheme safety net benefits to couples living apart due to illness. In Australia, approximately 24,000 couples need to live apart due to the need for at least one member of the couple to receive medical treatment and support. This measure will ensure that these couples receive the same benefits they would otherwise be entitled to if they were living together.

Pharmaceutical Benefits Scheme — extension to the listing of Humira® (adalimumab)

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	14.6	26.6	40.1	50.7
Department of Veterans' Affairs	-	0.3	0.5	0.6	0.7
Medicare Australia	-	0.1	0.1	0.2	0.2
Total	-	14.9	27.2	40.9	51.6
Related revenue ($m)
Department of Health and Ageing	-	nfp	nfp	nfp	nfp

The Government has extended the listing of Humira® (adalimumab) on the Pharmaceutical Benefits Scheme and Repatriation Pharmaceutical Benefits Scheme from 1 August 2008 at an estimated cost of $134.6 million over four years. This includes funding for administering payments through Medicare Australia. A pricing agreement negotiated between the Government and the drug manufacturer allows for offsets to the gross cost of Humira® .

The extension of the listing will provide subsidised access for adults who suffer from moderate to severe Crohn's disease and who are unresponsive to treatment with conventional therapy. Crohn's disease is an inflammatory disorder of the gastrointestinal tract.

Each patient requires approximately 13 scripts per year resulting in an annual average cost to the Pharmaceutical Benefits Scheme of approximately $21,300 per patient. General consumers will pay a $31.30 co-payment per prescription and concession card holders will pay a $5.00 co-payment per prescription.

Further information can be found in the press release of 1 August 2008 issued by the Minister for Health and Ageing.

Pharmaceutical Benefits Scheme — minor new listings

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	17.0	21.5	23.7	26.1
Department of Veterans' Affairs	-	1.2	1.5	1.6	1.7
Medicare Australia	-	0.4	0.3	0.2	0.2
Total	-	18.5	23.3	25.5	28.0

The Government has agreed to a number of minor new listings on the Pharmaceutical Benefits Scheme and Repatriation Pharmaceutical Benefits Scheme since the 2008‑09 Budget, at a cost of $95.3 million over four years. This includes funding for administering payments through Medicare Australia.

The minor new listings (including extensions to current listings) are medicines that have been listed at either no additional cost to the budget (because they replace existing listings) or at an estimated cost each of less than $10.0 million per annum.

Minor new listings include:

Fludara® for the treatment of advanced or progressive B-cell chronic lymphocytic leukaemia;
Tarceva® for the treatment of non-small cell lung cancer; and
Glivec® for the treatment of patients with four types of rare, potentially cancerous diseases.

Further information can be found in the press releases of 1 August 2008, 1 September 2008 and 1 October 2008 issued by the Minister for Health and Ageing and the updates to the Schedule of Pharmaceutical Benefits issued by the Department of Health and Ageing.

Pharmaceutical Benefits Scheme and National Diabetes Services Scheme — extension of access to government employees living overseas

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	0.3	0.3	0.3	0.3
Medicare Australia	-	..	..	..	..
Total	-	0.3	0.3	0.3	0.3

The Government will provide $1.2 million over four years to extend access to medicines and diabetes supplies subsidised under the Pharmaceutical Benefits and National Diabetes Services Schemes to government employees who are working overseas and their partners and dependants who are living with them.

This measure will allow government employees to continue to receive benefits that they would otherwise be entitled to were they living in Australia. Approximately 3,000 people are expected to benefit each year, including members of the Australian Federal Police and eligible family of Australian Defence Force members.

Reciprocal health care agreement with Slovenia

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Health and Ageing	-	..	..	..	..

The Government will provide $28,000 over four years from 2008‑09 to cover health care costs for visitors from Slovenia under a reciprocal health care arrangement.

The reciprocal health care agreement between Australia and Slovenia will allow visitors from Slovenia to be eligible for Medicare assistance for immediate necessary medical treatment in Australia, with reciprocal arrangements applying to Australian visitors to Slovenia.

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