EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 84
Minute No. 10 – Minister for Health and Ageing
Subject: Health Insurance Act 1973
Health Insurance Amendment Regulations 2006 (No. 2)
Subsection 133(1) of the Health Insurance Act 1973 (the Act) provides, in part, that the
Governor-General may make regulations, not inconsistent with the Act, 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.
Paragraph 10(2)(aa) of the Act enables a Medicare benefit equal to 100% of the Medicare schedule fee to be paid for certain services, as prescribed in regulations. Schedule 6 to the Health Insurance Regulations 1975 (the Principal Regulations) currently prescribes those services that attract a Medicare benefit equal to 100% of the Medicare schedule fee. These services are non-referred consultations provided by vocationally and non-vocationally registered general practitioners, and services provided by a practice nurse on behalf of a general practitioner.
The purpose of the proposed Regulations is to add five new services to Schedule 6 so as to prescribe that these five new services would attract a Medicare benefit equal to 100% of the Medicare schedule fee. These five new items were introduced by the amendments made by the Health Insurance (General Medical Services Table) Amendment Regulations 2006 (No.2) The five new services were agreed with the medical profession through the Medicare Benefits Consultative Committee process.
The proposed Regulations would also amend regulation 14 of the Principal Regulations to remove funding for microwave cancer therapy following a recommendation by the National Health and Medical Research Council review committee and consultation with the profession. The review committee was commissioned to assess the scientific evidence to support this therapy following concerns that were raised regarding the safety and effectiveness of microwave therapy. The medical profession through the Australian Medical Association was also consulted regarding the proposed amendment.
Details of the proposed Regulations are set out in the Attachment.
The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.
The proposed Regulations would be a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The proposed Regulations would commence on 1 May 2006.
The Minute recommends that Regulations be made in the form proposed.
Authority: Subsection 133(1) of the
Health Insurance Act 1973
ATTACHMENT
DETAILS OF THE PROPOSED HEALTH INSURANCE AMENDMENT REGULATIONS 2006 (No. 2)
Proposed Regulation 1 would provide for the Regulations to be referred to as the Health Insurance Amendment Regulations 2006 (No. 2).
Proposed Regulation 2 would provide for the Regulations to commence on 1 May 2006.
Proposed Regulation 3 would provide for Schedule 1 to amend the Health Insurance Regulations 1975 (the Principal Regulations).
Schedule 1 – Amendments
Item [1]
This item amends the Principal Regulations to include under regulation 14, clause (2) in the list of professional services rendered in prescribed circumstances “professional services rendered for the purposes of administering microwave (UHF radiowave) cancer therapy, including the intravenous injection of drugs used in the therapy.” This proposed amendment would preclude the payment of Medicare benefits in respect of microwave cancer therapy. It follows a recommendation made by the National Health and Medical Research Council review committee, which found no scientific evidence to support the use of microwaves in treating cancer, either alone or when combined with other therapies.
Item [2]
This item amends Schedule 6 to the Principal Regulations to include items 708, 714, and 716 as services that attract Medicare benefits equal to 100% of the Medicare schedule fee. Item 708 will cover an Aboriginal child health check. Item 714 will cover a health assessment for a refugee. Item 716 will cover a health assessment for a humanitarian entrant other than a refugee.
Item [3]
This item amends Schedule 6 to the Principal Regulations to include items 10988 and 10989 as services that attract Medicare benefits equal to 100% of the Medicare schedule fee. Item 10988 covers immunisation by a registered Aboriginal health worker on behalf of a medical practitioner. Item 10989 covers wound management by a registered Aboriginal health worker on behalf of a medical practitioner.
Overview
The Health Insurance Amendment Regulations 2006 (No. 2) were enacted to address specific gaps in the Medicare benefits provided under the Health Insurance Act 1973. The regulations were introduced to provide a comprehensive update to the services covered under the Act, ensuring that essential healthcare services are adequately reimbursed. Enacted by the Governor-General, these regulations aimed to align the Medicare benefits schedule with contemporary healthcare needs and practices. By adding new services to the list of those attracting a 100% Medicare benefit and discontinuing funding for certain treatments lacking scientific support, the regulations sought to enhance the efficiency and effectiveness of the Medicare system. This was achieved through consultation with relevant professional bodies and a review of the available scientific evidence, ensuring the policy objectives of improving healthcare accessibility and quality were met.
Scope and Application
The Health Insurance Amendment Regulations 2006 (No. 2) are subordinate instruments made under the authority of the Health Insurance Act 1973. These regulations primarily serve to adjust the services for which Medicare benefits can be claimed at 100% of the Medicare schedule fee, and to remove funding for certain medical procedures. They apply to medical practitioners, practice nurses, registered Aboriginal health workers, and patients who receive the specified services in Australia. The regulations aim to align Medicare benefits with new healthcare services deemed necessary, as well as to cease funding for therapies that lack scientific support. The amendments specified in these regulations will affect a range of healthcare providers and patients across Australia. These regulations do not impose specific conditions for their application beyond what is already outlined in the Health Insurance Act 1973. The regulations are set to commence on 1 May 2006 and will become a legislative instrument under the Legislative Instruments Act 2003.
Key Provisions
The Health Insurance Amendment Regulations 2006 (No. 2) introduce several amendments to the Health Insurance Regulations 1975, primarily to enhance the scope of services covered by Medicare and to remove funding for certain treatments. Regulation 1 identifies the Regulations as the Health Insurance Amendment Regulations 2006 (No. 2), and Regulation 2 sets the commencement date as 1 May 2006. Regulation 3 facilitates the amendment of the Principal Regulations, with detailed changes outlined in Schedule 1. The most notable amendments include the addition of new services that attract a Medicare benefit equal to 100% of the Medicare schedule fee, such as Aboriginal child health checks, health assessments for refugees, and health assessments for humanitarian entrants. These additions are detailed in Items 2 and 3 of Schedule 1, which respectively modify Schedule 6 to include new items 708, 714, 716, 10988, and 10989.
These Regulations impose specific obligations on healthcare providers and entities involved in the delivery of the newly prescribed services. Healthcare providers must ensure that they are appropriately registered and qualified to deliver these services, particularly in the case of Aboriginal health workers who are providing immunisation and wound management services on behalf of medical practitioners. Furthermore, these Regulations require that the new services align with the Medicare schedule fee, ensuring that patients receive the full benefit without any out-of-pocket expenses for these prescribed consultations and assessments. The inclusion of these services in Schedule 6 also mandates that Medicare recognise and fund these services when provided under the specified circumstances.
In addition to the new services, the Regulations also include an amendment that removes funding for microwave cancer therapy, as detailed in Item 1 of Schedule 1. This change follows a recommendation by the National Health and Medical Research Council review committee, which found insufficient scientific evidence to support the use of microwaves in cancer treatment. The amendment to regulation 14 of the Principal Regulations effectively precludes the payment of Medicare benefits for microwave cancer therapy. While the Act does not explicitly outline penalties for breaches of these Regulations, any failure to comply with Medicare funding guidelines could result in financial penalties or other administrative consequences for healthcare providers, as per the general provisions of the Health Insurance Act 1973.