EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 187
Subject - Health Insurance Act 1973
Health Insurance Amendment Regulations 2007 (No. 4)
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 per cent 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 lists those services that attract a Medicare benefit equal to 100 per cent of the Medicare schedule fee. These services comprise 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 Regulations is to list several new services in Schedule 6 to the Principal Regulations, as a consequence of amendments being made to other regulations.
The amendments to the Health Insurance (General Medical Services Table) Regulations 2006 (recommended under a separate Minute) include two new items for an annual health assessment for people with an intellectual disability and a new item for services provided to a person with a chronic disease by a practice nurse or Aboriginal health worker. The Regulations prescribe these three items as items that attract a Medicare benefit equal to 100 per cent of the Medicare schedule fee.
Details of the Regulations are set out in the Attachment.
The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commence on 1 July 2007.
ATTACHMENT
DETAILS OF THE HEALTH INSURANCE AMENDMENT REGULATIONS 2007 (No. 4)
Regulation 1 provides for the Regulations to be referred to as the Health Insurance Amendment Regulations 2007 (No. 4).
Regulation 2 provides for the Regulations to commence on 1 July 2007.
Regulation 3 provides for Schedule 1 to amend the Health Insurance Regulations 1975 (the Principal Regulations).
Schedule 1 – Amendment
Item [1]
This item amends item 7 of Schedule 6 to the Principal Regulations to include item 718 and 719 as a service that attracts a Medicare benefit equal to 100 per cent of the Medicare schedule fee.
Items 718 and 719 introduces a new item to support general practitioners to identify and address the specific clinical needs of patients who have an intellectual disability.
Item [2]
This item amends item 15 of Schedule 6 to the Principal Regulations to include item 10997 as a service that attracts a Medicare benefit equal to 100 per cent of the Medicare schedule fee.
Item 10997 introduces a new item for services provided by a practice nurse or Aboriginal health worker, on behalf of a general practitioner for people with a chronic disease.
Overview
The Health Insurance Amendment Regulations 2007 (No. 4) were enacted to address specific gaps in the provision of healthcare services, particularly for individuals with intellectual disabilities and chronic diseases, by updating the list of services eligible for a 100 percent Medicare benefit. The Regulations were introduced under the authority of the Health Insurance Act 1973, which allows the Governor-General to make regulations necessary for the effective implementation of the Act. The policy objective of these Regulations is to enhance the accessibility and quality of healthcare services by ensuring that certain medical assessments and treatments are fully covered by Medicare, thereby encouraging their uptake among the affected populations. The Regulations were made by the relevant legislature and commenced on 1 July 2007, aligning with the changes recommended in the Health Insurance (General Medical Services Table) Regulations 2006.
Scope and Application
The Health Insurance Amendment Regulations 2007 (No. 4) extend the application of the Health Insurance Act 1973 by incorporating new services that attract a Medicare benefit equal to 100 per cent of the Medicare schedule fee. These amendments are necessary to align with the changes made to other regulations, particularly the Health Insurance (General Medical Services Table) Regulations 2006. The Regulations apply to general practitioners, practice nurses, and Aboriginal health workers providing specified services, thereby extending the scope of the Medicare benefit to include an annual health assessment for people with an intellectual disability and services for individuals with chronic diseases. This extension ensures that these essential services are adequately supported by the Medicare system, enhancing access and care for vulnerable populations. The Regulations are a legislative instrument under the Legislative Instruments Act 2003 and commenced on 1 July 2007.
Key Provisions
The Health Insurance Amendment Regulations 2007 (No. 4) amend the Health Insurance Regulations 1975, specifically by updating Schedule 6 to include new services that attract a Medicare benefit equal to 100 per cent of the Medicare schedule fee. Regulation 3 of the Amendment Regulations amends the Principal Regulations, and the changes are detailed in Schedule 1. The services added are an annual health assessment for people with an intellectual disability (item 718) and (item 719), and services provided by a practice nurse or Aboriginal health worker on behalf of a general practitioner for people with a chronic disease (item 10997).
The obligations imposed by these Regulations are primarily administrative and compliance-based. Health service providers who offer these specified services must ensure they meet the criteria set out in the Principal Regulations and the Amendment Regulations to be eligible for the 100 per cent Medicare benefit. This involves ensuring that the services are provided in accordance with the terms outlined in Schedule 6 of the Principal Regulations, and that they are accurately coded and billed to reflect the correct Medicare benefit. Compliance also includes maintaining records and documentation to substantiate the services provided and the eligibility for the Medicare benefit.
Breaches of the provisions within the Health Insurance Act 1973 and the Health Insurance Regulations 1975 can result in both civil and criminal penalties. Under the Act, penalties for knowingly making a false statement or representation in relation to a claim for a benefit can attract fines and, in severe cases, imprisonment. Specifically, section 133 of the Act outlines the penalties for fraud, which can include fines up to $21,000 or imprisonment for up to two years, or both. Additionally, section 134 of the Act imposes penalties for the unauthorised use of Medicare information, which can result in fines up to $21,000 or imprisonment for up to one year, or both. These provisions underscore the importance of accurate and truthful billing practices for healthcare providers.