Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy Decisions Taken Since the 2011‑12 Budget > Expense Measures > Health and Ageing

Appendix A: Expense Measures (Continued)

Health and Ageing

Clean Energy Future — Helping Households — residential aged care

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-	0.5	0.4	0.3
Department of Veterans' Affairs	-	-	0.1	0.1	0.1
Total - Expense	-	-	0.6	0.5	0.4

The Government will provide $1.5 million over four years to ensure that assistance available to aged care residents is shared fairly between the residents and aged care providers, recognising that providers bear many costs for their residents, including electricity and food.

Over 2,700 aged care providers across Australia will receive this financial support through changes being made to the basic daily fee arrangements. From 1 July 2012 the fee that providers can charge residents will be increased from 84 per cent to 85 per cent of the total basic pension amount.

This will mean that around 50 per cent of assistance paid through the pension will flow to the provider and the remaining amount will go to the resident to help with other costs resulting from the introduction of a carbon price.

Aged care residents who are self funded and do not receive assistance through the Commonwealth seniors health care card or tax cuts will be protected from fee increases through the Government providing an additional supplement to aged care providers in respect of these residents.

See also the related measures titled Clean Energy Future — Helping Households — tax cuts and increased payments and Clean Energy Future — Helping Households — Essential Medical Equipment Payment.

This measure delivers on the Government's plan for a clean energy future.

Further information can be found in the joint press release of 10 July 2011 issued by the Prime Minister, the Deputy Prime Minister and Treasurer and the Minister for Climate Change and Energy Efficiency.

Delivery of Human Quarantine Services

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of the Treasury	-	0.6	-	-	-
Department of Health and Ageing	-	-0.6	-	-	-
Total - Expense	-	-	-	-	-

The Government will provide $0.6 million in 2011‑12 to the states and territories, to enable a communicable disease expert to be available at all times to support human quarantine services at Australian national borders.

This will strengthen existing efforts to protect the Australian public from serious communicable diseases, particularly exotic, new and re‑emerging infectious diseases.

The cost of this measure will be met from within the existing resources of the Department of Health and Ageing.

Health and Hospitals Fund — Northern Territory BreastScreen Australia project

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-	-	-	-
Department of the Treasury	-	-1.2	-0.6	1.2	0.6
Total - Expense	-	-1.2	-0.6	1.2	0.6

The Government is deferring funding of $1.8 million for the expansion of the BreastScreen NT project from 2011‑12 and 2012‑13 to 2013‑14 and 2014‑15. BreastScreen NT will continue to provide free breast screening primarily for women aged between 50 and 69 years who present without symptoms of breast cancer. Screening centres are located in Darwin and Alice Springs and a visiting service travels to Tennant Creek and Katherine annually, and Nhulunbuy (Gove) biennially.

This measure flows on from the 2009‑10 Budget measure titled Health and Hospitals Fund — national cancer statement.

Health and Hospitals Fund — Royal Hobart Hospital — bring forward of funding

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-	-	-	-
Department of the Treasury	170.0	..	-38.6	-50.0	-50.0
Total - Expense	170.0	..	-38.6	-50.0	-50.0

The Government has brought forward its contribution to the expansion of the Royal Hobart Hospital. The Government provided $170 million in 2010‑11, to facilitate the early stages of the project, and has revised the funding profile to reflect the early injection of funding.

The Government's contribution to the Royal Hobart Hospital is being funded through the Regional Priority Round of the Health and Hospitals Fund.

This funding was originally announced in the 2010‑11 MYEFO measure titled Health and Hospitals Fund — Royal Hobart Hospital.

Herceptin^® Program — additional vial size

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Human Services	-	0.6	-	-	-
Department of Health and Ageing	-	-4.5	-5.1	-5.3	-5.5
Total - Expense	-	-4.0	-5.1	-5.3	-5.5
Related capital ($m)
Department of Human Services	-	0.4	-	-	-

The Government has listed an additional vial size of Herceptin^® (trastuzumab) on the Herceptin^® Program from 1 August 2011, at a saving of $19.5 million over four years. The availability of this smaller 60mg vial will reduce product wastage. This measure also includes funding of $1.0 million (including capital funding of $0.4 million) in 2011‑12 for the Department of Human Services (Medicare Australia) to administer this change.

The Herceptin^® Program provides free access to Herceptin^® for eligible patients affected by late‑stage metastatic breast cancer.

Further information can be found in the press release of 21 June 2011 issued by the Minister for Health and Ageing.

Medicare Benefits Schedule — new and revised listings

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Human Services	-	..	..	..	..
Department of Health and Ageing	-	-0.1	-0.2	-0.4	-0.6
Department of Veterans' Affairs	-	-0.2	-0.6	-0.7	-0.7
Total - Expense	-	-0.3	-0.8	-1.1	-1.4

The Government will amend the Medicare Benefits Schedule (MBS) and Veterans' Benefits for new and revised listings since the 2011‑12 Budget.

The amendments include:

encouraging ophthalmologists to provide additional comprehensive eye examinations to children by increasing the rebate paid for one paediatric ophthalmology item by 50 per cent and lifting the age eligibility from children up to and including 8 years to children up to and including 9 years;
aligning an existing ophthalmology item for either the injection of therapeutic substances into the eye or removal of material from the eye for diagnostic purposes with current best clinical practice; and
removing two orthopaedic items for the injection of bone cement into fractured vertebrae from the MBS in accordance with advice from the Medical Services Advisory Committee.

This measure is expected to save $3.6 million over four years.

Further information is available in the summary of changes included in the MBS issued by the Department of Health and Ageing.

Savings from this measure will be redirected to support other Government priorities.

Mersey Community Hospital Tasmania — ongoing commitment

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-	2.2	4.5	-

The Government will provide an additional $17.6 million over three years to 2013‑14 for the Tasmanian Government to continue to operate the Mersey Community Hospital on behalf of the Commonwealth. This increases the total commitment by the Government for the operation of Mersey Hospital to $197.6 million over three years.

The additional funding continues the Government's commitment to fund the operation of the Mersey Community Hospital to enable it to provide a comprehensive range of high quality hospital services for public and private patients.

Funding of $10.8 million for this measure was included as a 'decision taken but not yet announced' in the 2011‑12 Budget.

Further information can be found in the press release of 28 June 2011 issued by the Minister for Health and Ageing.

National Health Reform Agreement — revised funding arrangements

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of the Treasury	-	-	-	-	21.0
Department of Health and Ageing	-	-	-	-	-
Total - Expense	-	-	-	-	21.0

The National Health Reform Agreement was signed by the Commonwealth and all state and territory governments on 2 August 2011. As part of this new Agreement, the Commonwealth has agreed to enhance the guaranteed funding arrangements for the states, which were originally announced in the 2010‑11 Budget Measure National Health and Hospitals Network — rebalancing financial responsibility in the federation.

The Commonwealth has committed to meet 45 per cent of efficient growth in public hospital services between 2014‑15 and 2017‑18, and 50 per cent of efficient growth in public hospital services from 2017‑18 onwards.

The Commonwealth has guaranteed that it will provide at least $16.4 billion in additional funding for efficient growth in public hospital services between 2014‑15 and 2019‑20. Of that amount, $9.5 billion will be allocated annually among the states on an equal per capita basis, to provide each state with greater certainty about the minimum amount of additional funding.

This new funding is in addition to the Commonwealth's existing National Healthcare Specific Purpose Payment funding.

The financial impact of the state‑specific guarantee is estimated to be $21 million in 2014‑15 and $45 million in 2015‑16, reflecting the fact that the equal per capita allocation for some states is likely to be higher than growth funding based on actual activity.

Further information can be found in the press release of 2 August 2011 issued by the Prime Minister.

National Immunisation Program — listing of Fluarix^®

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-0.2	-0.2	-0.2	-0.2

The Government will list Fluarix^® on the National Immunisation Program, in place of a more expensive alternative, which will provide a saving of $0.7 million over four years. Fluarix^®, a generic seasonal influenza vaccine, has been selected to form part of the seasonal influenza vaccine supply.

Further information can be found in the press release of 21 June 2011 issued by the Minister for Health and Ageing.

National Immunisation Program — Q fever vaccine — revised arrangements

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-	-1.4	-1.4	-1.4

The Government will cease the availability of the publicly‑funded Q fever vaccine that was announced in the 2007‑08 Budget measure National Immunisation Program — Q fever vaccine. The Government will continue to provide Q fever vaccine in response to an emergency situation involving a Q fever outbreak.

Q fever is primarily an occupational health and safety issue, and is appropriately funded by employers and individuals, consistent with the funding of vaccines for other employment groups. The Government will continue to support the availability of Q fever vaccine on the private market.

This measure will provide savings of $5.7 million over five years (including $1.4 million in 2015‑16).

Pharmaceutical Benefits Scheme — new and amended listings

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	67.4	111.7	127.2	134.6
Department of Veterans' Affairs	-	0.8	0.7	0.7	0.6
Department of Human Services	-	0.4	0.4	0.6	0.7
Total - Expense	-	68.6	112.8	128.6	135.9
Related revenue ($m)
Department of Health and Ageing	-	nfp	nfp	nfp	nfp
Related capital ($m)
Department of Human Services	-	0.2	-	-	-

The Government has agreed to a number of new, and amendments to, listings on the Pharmaceutical Benefits Scheme (PBS) and the Repatriation Pharmaceutical Benefits Scheme (RPBS), at a gross cost of $446.1 million over four years. This includes funding for administering payments through the Department of Human Services (Medicare Australia). Pricing agreements negotiated between the Government and the drug manufacturers allow for offsets to the gross cost of some of these medicines.

Listings from 1 September 2011 include:

Erbitux^® (cetuximab), for the treatment of metastatic colorectal cancer;
Risperdal Consta^® (risperidone), for the treatment of bipolar disorder; and
Gilenya^® (fingolimod), for the treatment of relapsing‑remitting multiple sclerosis.

Listings from 1 October 2011 include:

Tobi^® (tobramycin), for the treatment of infections in patients with cystic fibrosis.

Listings from 1 November 2011 include:

Revolade^® (eltrombopag), for the treatment of a potentially life threatening bone marrow disorder in adults.

Listings from 1 December 2011 include:

Saphris^® (asenapine), for the treatment of both bipolar 1 disorder and schizophrenia;
Xgeva^® (denosumab), for the treatment of bone metastases from breast cancer and hormone resistant prostate cancer;
Mabthera^® (rituximab), for the treatment of a specific form of chronic lymphocytic leukaemia;
Symbicort^® (budesonide with eformoterol), for the treatment of lung disease;
Fragmin^® (dalteparin sodium), for the treatment of blood clots in patients with cancer; and
Synarel^® (nafarelin), for the treatment of patients undergoing in‑vitro fertilisation (IVF).

General consumers will pay a $34.20 co‑payment per prescription and concession card holders will pay a $5.60 co‑payment per prescription.

Further information can be found in the press releases of 21 June 2011 and 1 September 2011 issued by the Minister for Health and Ageing, and the press release of 30 September 2011 jointly issued by the Prime Minister and the Minister for Health and Ageing.

Pharmaceutical Benefits Scheme — price amendments

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Veterans' Affairs	-	-1.8	-3.8	-3.7	-3.8
Department of Health and Ageing	-	-17.8	-38.7	-38.8	-41.0
Total - Expense	-	-19.6	-42.5	-42.6	-44.8

The Government has agreed to a number of price amendments to medicines already listed on the Pharmaceutical Benefits Scheme (PBS) and the Repatriation Pharmaceutical Benefits Scheme (RPBS), at a net saving of $149.4 million over four years.

These price amendments include:

Lanoxin^® (digoxin oral solution) for the treatment of serious heart conditions including heart failure in infants and children;
Rimycin^® (rifampicin) for the treatment of rare but serious infections including tuberculosis and as a prophylaxis for close contacts of patients with meningococcal disease; and
Erythrocin‑IV^® (erythromycin lactobionate) and E‑Mycin 200^®, E.E.S200^®, E‑Mycin 400^®, E.E.S Granules^® (erythromycin ethyl succinate) for the treatment of bacterial infections.

These price amendments were recommended by the Pharmaceutical Benefits Pricing Authority (PBPA). The PBPA is an independent non‑statutory body that reviews the price of products supplied under the PBS and vaccines on the National Immunisation Program.

Positron Emission Tomography (PET) services at Westmead Hospital

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	-	-	-	-
Department of the Treasury	-	-1.3	-1.3	-1.3	-1.3
Total - Expense	-	-1.3	-1.3	-1.3	-1.3

From 1 July 2011, the Government ceased grant funding for positron emission tomography (PET) services and research at the Westmead Hospital, following its decision to fund access to an extended range of PET items through the Medicare Benefits Schedule (MBS).

Services will be funded through the MBS as PET has been demonstrated to be an effective technology for the diagnosis of a variety of diseases, especially cancer.

See also the related expense measure titled Medicare Benefits Schedule — new and revised listings from the 2011‑12 Budget.

Savings from this measure will be redirected to support other Government priorities.

Therapeutic products — establishment of the Australia New Zealand Therapeutic Products Agency

Expense ($m)
	2010‑11	2011‑12	2012‑13	2013‑14	2014-15
Department of Health and Ageing	-	nfp	-	-	-
Related capital ($m)
Department of Health and Ageing	-	nfp	-	-	-

The Government, in partnership with the New Zealand Government, will establish the Australia New Zealand Therapeutic Products Agency. The joint agency will regulate medicines, medical devices and other therapeutic goods in Australia and New Zealand.

The creation of a joint regulatory scheme across both countries is designed to safeguard public health and safety, while encouraging economic integration and benefitting industry in both countries. A staged implementation of the new arrangements will take place over a period of up to five years. The first stage of implementation, which includes sharing information, training and expertise between the Therapeutic Goods Administration (Australia) and Medsafe (New Zealand), commenced in July 2011.

The expenditure for this measure is not for publication (nfp) due to ongoing negotiations with the New Zealand Government.

Further information can be found in the press release of 20 June 2011 issued by the Prime Minister.

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