EXPLANATORY STATEMENT
Issued by Authority of the Minister for Health and Ageing
Health Insurance Act 1973
Determination under Subsection 3(1)
(HIB 33/2006)
Paragraph (b) of the definition of ‘patient contribution’ in subsection 3(1) of the Health Insurance Act 1973 (the Act) provides that the Minister may from time to time determine the levels of patient contribution by a nursing-home type patient of a recognized hospital in a State.
This determination determines for the purposes of paragraph (b) that the amount of patient contribution shall be $37.30 per day in respect of recognized hospitals in Western Australia.
Consultation
The Department of Health, Western Australia was consulted regarding the new nursing home type patient contribution and has advised it will apply the new rates in recognized hospitals within Western Australia from the day after the determination is registered on the Federal Register of Legislative Instruments
The determination and this explanatory statement have been lodged for registration on the Federal Register of Legislative Instruments.
PRIVATE HEALTH INSURANCE BRANCH
DEPARTMENT OF HEALTH AND AGEING
NOVEMBER 2006
Overview
The Health Insurance Act 1973, enacted by the Australian Parliament, governs the regulation and administration of private health insurance in Australia. This Act was introduced to address the need for a structured system to manage health insurance contributions and benefits, ensuring equitable access to health services. In 2006, a determination was made under subsection 3(1) of the Act to specify the patient contribution levels for nursing-home type patients in recognised hospitals. This particular determination, F2006L03920, sets the patient contribution at $37.30 per day for nursing-home type patients in recognised hospitals in Western Australia. The policy objective of this determination is to provide clarity and consistency in patient contributions, ensuring that the new rates are implemented effectively across the relevant hospitals in the state following consultation with the Department of Health, Western Australia.
Scope and Application
The Health Insurance Act 1973, under the authority of the Minister for Health and Ageing, encompasses the provisions for determining patient contribution levels for nursing-home type patients in recognised hospitals within the states. Specifically, the Act allows the Minister to set these levels, and the recent determination under subsection 3(1)(HIB 33/2006) establishes that the patient contribution for such patients in Western Australia is $37.30 per day. This applies to individuals who are classified as nursing-home type patients in hospitals recognised by the Commonwealth, which are recognised hospitals situated within the state of Western Australia. The determination ensures that this rate is implemented in all applicable facilities across the state once registered on the Federal Register of Legislative Instruments. The jurisdictional reach of this Act is confined to the state of Western Australia, and it is implemented by the Department of Health in that state. There are no stated exclusions or exemptions in this particular determination, but the Act's broader application may be subject to further specification through subordinate instruments.
Key Provisions
The key provision of the F2006L03920 Determination, as specified in subsection 3(1)(HIB 33/2006) of the Health Insurance Act 1973, is the determination of the patient contribution amount for nursing-home type patients in recognized hospitals in Western Australia. The determination sets the patient contribution at $37.30 per day. This determination is made under the authority granted by the Act, specifically paragraph (b) of the definition of ‘patient contribution’ in subsection 3(1), which allows the Minister to set these levels from time to time.
The Act imposes certain obligations on the parties involved. It requires the Minister to determine the levels of patient contribution for nursing-home type patients in recognized hospitals, a task which is done periodically. For the purposes of this determination, the Department of Health in Western Australia has been consulted and has confirmed that it will apply these new rates in recognized hospitals within the state, effective from the day after the determination is registered on the Federal Register of Legislative Instruments. This ensures that the new rates are implemented promptly and that there is compliance with the legislative requirements set forth in the Act.
In terms of consequences for breach, the Act does not explicitly state any specific offences, penalties, or civil/criminal consequences for non-compliance with the determination. However, any failure to adhere to the provisions set forth in the Act could potentially lead to legal actions under the general enforcement mechanisms available under the Health Insurance Act 1973. The precise penalties for such breaches would depend on the nature and severity of the non-compliance, and could be pursued under relevant sections of the Act or other applicable legislation.
Given the determination’s role in setting the patient contribution amount, adherence to the set rates is crucial for compliance. The Act's framework ensures that the patient contribution is regulated and updated as necessary to meet the needs of nursing-home type patients in recognized hospitals. This regulatory approach helps maintain the integrity of the health insurance system and ensures that patient contributions are fair and reasonable.