EXPLANATORY STATEMENT
Issued by Authority of the Minister for Health and Ageing
Health Insurance Act 1973
Determination under Subsection 3(1)
(HIB 07/2007)
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, on and from 20 March 2007 be $38.20 per day in respect of recognized hospitals in Tasmania.
Consultation
The Department of Health and Human Services, Tasmania was consulted regarding the new nursing home type patient contribution and has advised it will apply the new rates from the
20 March 2007 in recognized hospitals within Tasmania.
This determination commences on 20 March 2007. 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
MARCH 2007
Overview
The Health Insurance Act 1973 was enacted to provide a framework for the regulation of private health insurance in Australia, addressing the need for equitable access to health services and financial protection against the costs of medical care. This Act empowers the Minister for Health and Ageing to determine patient contribution levels for nursing-home type patients in recognized hospitals across the states, thereby ensuring a standardised approach to the cost-sharing aspect of healthcare services. The 2007 determination under subsection 3(1) of the Act, specifically targeting Tasmania, was introduced to set the patient contribution rate for nursing-home type patients at $38.20 per day, effective from 20 March 2007. This action was taken to align with the policy objective of maintaining fair and consistent healthcare financing across different states, as advised by the Department of Health and Human Services, Tasmania.
Scope and Application
The Health Insurance Act 1973, as amended by the determination HIB 07/2007, applies to nursing-home type patients of recognized hospitals in Tasmania. This determination specifies the patient contribution amount for these patients, setting it at $38.20 per day, effective from 20 March 2007. The Act governs the financial contributions expected from patients in certain healthcare settings, with this particular determination focusing on the rates applicable in Tasmania. The Department of Health and Human Services, Tasmania, has confirmed its acceptance and implementation of these new rates within its recognized hospitals from the specified commencement date. The determination is a Commonwealth initiative, but its application is geographically limited to Tasmania, reflecting a tailored approach to patient contributions within different states. This determination does not alter the fundamental scope or application of the Health Insurance Act 1973 beyond the specific context of patient contributions in Tasmanian nursing-home type patients.
Key Provisions
The main sections of this determination under subsection 3(1) of the Health Insurance Act 1973 (the Act) set forth the patient contribution for nursing-home type patients in recognized hospitals in Tasmania, effective from 20 March 2007. Specifically, paragraph (b) of the definition of ‘patient contribution’ in subsection 3(1) allows the Minister to determine the contribution levels, and this determination fixes the amount at $38.20 per day for such patients in Tasmania. This legislative provision ensures that the patient contribution aligns with the updated rates, providing clarity for both healthcare providers and patients.
The Act imposes specific obligations on the parties it governs, particularly in relation to the provision of healthcare services and the payment of patient contributions. For nursing-home type patients in recognized hospitals in Tasmania, this determination requires healthcare providers to charge the set patient contribution of $38.20 per day, starting from 20 March 2007. This obligation extends to ensuring that the new rates are accurately applied and communicated to patients and their families, maintaining transparency and compliance with the legislative requirements.
Breach of the provisions outlined in this determination could lead to various consequences. While specific offences and penalties are not detailed in the text, it is reasonable to infer that failure to comply with the mandated patient contribution rates could result in administrative or legal actions. These might include fines or other penalties imposed by the relevant authorities to ensure adherence to the Act. The maximum penalties, if applicable, would be determined according to the specific provisions of the Health Insurance Act 1973 and any associated regulations, but they are not explicitly stated in this determination. The primary aim of this legislative measure is to uphold the integrity of the healthcare system by standardising patient contributions across recognized hospitals in Tasmania.