Health Insurance Amendment Regulations 2001 (No. 2) 2001 No. 273
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 273
Issued by authority of the Minister for Health and Aged Care
Health Insurance Act 1973
Health Insurance Amendment Regulations 2001 (No. 2)
The Health Insurance Act 1973 (the Act) provides for payments by way of Medicare benefits and payments for hospital services. Until recently the Act also provided for identification of "disadvantaged persons" who were thereby entitled to concessional beneficiary status for pharmaceutical benefits under Part VII of the National Health Act 1953.
Section 133 of the Act provides that the Governor-General may make regulations prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 5B of the Act was repealed by the Social Security Amendment (Concession Cards) Act 2001, with effect from 1 July 2001. Section 5B of the Act provided for a person on a low income to be declared a "disadvantaged person". Regulation 7 prescribed the method of ascertaining the income of the person for this purpose.
Section 5B of the Act has been replaced by new provisions in the Social Security Act 1991 setting out qualifications for persons on low incomes to receive health care cards.
The purpose of the Regulations is to repeal Regulation 7, which, following the repeal of section 5B, no longer has any effect.
Details of the Regulations are set out in the Attachment.
The Regulations commenced on the date of gazettal.
ATTACHMENT
Details of the proposed Health Insurance Amendment Regulations 2001 (No. 2)
Proposed Regulation 1 provides for the proposed Regulation to be referred to as the Health Insurance Amendment Regulations 2001 (No. 2).
Proposed Regulation 2 provides for the proposed Regulations to commence on gazettal.
Proposed Regulation 3 provides for the repeal of Regulation 7 of the Health Insurance Regulations 1975.
Overview
The Health Insurance Amendment Regulations 2001 (No. 2) were enacted to address the changes brought about by the Social Security Amendment (Concession Cards) Act 2001, which repealed Section 5B of the Health Insurance Act 1973. This section previously allowed for the declaration of low-income individuals as "disadvantaged persons," a status that entitled them to concessional beneficiary status for pharmaceutical benefits under the National Health Act 1953. With the repeal of Section 5B, and the corresponding shift in the determination of low-income health care qualifications to the Social Security Act 1991, there was a need to update existing regulations to reflect these changes. These regulations were made under the authority of the Minister for Health and Aged Care, and the primary policy objective was to ensure that the regulatory framework remained aligned with the legislative amendments, thereby maintaining the integrity and functionality of the health insurance system.
The Health Insurance Amendment Regulations 2001 (No. 2) specifically target the repeal of Regulation 7 of the Health Insurance Regulations 1975, which had prescribed the method of ascertaining the income of individuals for the purpose of determining their eligibility as disadvantaged persons. The repeal of this regulation, which was no longer applicable following the legislative changes, ensures that the regulatory framework is current and does not contain redundant provisions. These regulations commenced on the date of their gazettal, ensuring immediate implementation of the necessary amendments.
Scope and Application
The Health Insurance Amendment Regulations 2001 (No. 2) amends the Health Insurance Regulations 1975 by repealing Regulation 7, which previously prescribed the method of ascertaining the income of a person for the purpose of determining if they were a disadvantaged person under section 5B of the Health Insurance Act 1973. This repeal follows the removal of section 5B from the Health Insurance Act 1973 by the Social Security Amendment (Concession Cards) Act 2001, which introduced new provisions in the Social Security Act 1991 for determining qualifications for health care cards for individuals on low incomes. The Regulations apply to the Commonwealth of Australia and are necessary for the Act to effectively implement the changes made by the legislative amendments. The Regulations came into effect on the date of their gazettal, ensuring the Health Insurance Regulations 1975 remain consistent with the current legislative framework.
Key Provisions
The Health Insurance Amendment Regulations 2001 (No. 2) primarily focus on repealing certain regulations that have become redundant following the repeal of section 5B of the Health Insurance Act 1973. Specifically, Proposed Regulation 3 repeals Regulation 7 of the Health Insurance Regulations 1975, which had previously provided the method for ascertaining the income of a person to determine if they were a "disadvantaged person" under the repealed section 5B of the Act. This repeal is necessary because the concept of "disadvantaged persons" and the associated income assessment method are no longer applicable following the introduction of new provisions in the Social Security Act 1991 that outline qualifications for persons on low incomes to receive health care cards.
The Regulations impose specific obligations on the relevant parties by ensuring that outdated regulatory provisions are no longer in effect. This is achieved by repealing Regulation 7, thereby aligning the Health Insurance Regulations 1975 with the current legislative framework. The repeal of this regulation ensures that there is no confusion or continued application of superseded provisions, thereby maintaining the integrity and relevance of the regulatory framework.
In terms of compliance and consequences, the Regulations do not introduce new offences or penalties. However, any continued reliance on the repealed Regulation 7 could lead to non-compliance with the current legal requirements. The primary consequence of such non-compliance would be the improper application of regulations, potentially affecting the eligibility and benefits of individuals under the Health Insurance Act 1973. While the Regulations themselves do not specify new penalties, any resulting non-compliance with the updated legislative framework could attract penalties or consequences under the broader provisions of the Health Insurance Act 1973 or related legislation.