Health Insurance Commission Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1997B02820 Regulations Not in force Legislative Instrument

Legislation content

Health Insurance Commission Regulations (Amendment) 1997 No. 332

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 332

Issued by the Authority of the Minister for Health and Family Services

Health Insurance Commission Act 1973

Health Insurance Commission Regulations (Amendment)

The Health Insurance Commission Act 1973 ("the Act") provides for the functions of the Health Insurance Commission (HIC).

Subsection 8AA(2) of the Act provides that the HIC shall perform such functions as are prescribed.

Section 44 of the Act provides for the Governor-General to make regulations for the purposes of the Act.

The Health Insurance Commission Regulations were amended by the Governor-General in 1993 to give effect to certain administrative functions being carried out by the HIC, on behalf of Australian Hearing Services (AHS).

The Hearing Services Administration Act 1997 and the Hearing Services and AGHS Reform Act 1997 make a number of reforms to the delivery of government-funded hearing services including the creation of a voucher system. Those eligible to participate in the voucher system will be able to choose to receive their hearing services from AHS or from an accredited private sector provider. Previously. AHS had exclusive rights to provide government-funded services. A new Office of Hearing Services has been established to administer the new arrangements.

Previous regulation 3H, which prescribed functions of the HIC in relation to hearing services, is now being omitted.

New regulation 3H will enable the HIC to:

1 .       accept claims by and make payments to hearing services providers;

2.       release certain information (e.g. date on which the claim was given to the HIC) about claims and payments to the Office of Hearing Services; and

3.       recover and offset service provider debts.

Details of the Regulations are set out in the Attachment.

The Regulations commenced on gazettal.

ATTACHMENT

Details of Amendments to Regulation 3

The primary purpose of the amendment to regulation 3H of the Health Insurance Commission Regulations is to enable the Health Insurance Commission (HIC) to administer part of the new hearing services scheme.

Specifically..

*       subregulation 1.1 - provides for the amendment of the Health Insurance Commission Regulations (the Regulations), as set out below.

*       subregulation 2.1 - provides for the substitution of new regulation 3H. The subregulation inserts:

-       subregulation 3H(1) - which will allow the HIC to perform the function of claims acceptance and claims payment body as prescribed under the Hearing Services Administration Act 1997.

-       subregulation 3H(2) - which provides that subregulation 3H(1) is only effective when the HIC has been declared a claims acceptance or claims payment body.

-       subregulation 3H(3) - which enables the HIC to disclose information to the

Department about claims accepted and paid.

-       paragraph 3H(3)(a) to paragraph 3h(3)(s) - enables the HIC to disclose to the Department the following information:

       (a) client number;

       (b) voucher number;

       (c) date on which the claim was given to the HIC;

       (d) date on which the HIC processed the claim;

       (e) date of the service the claims relates to;

       (f) provider number;

       (g) practitioner number;

       (h) site identification;

       (i) item number;

       (j) hearing loss details for both ears;

       (k) details of the device fitted to the client;

       (1) date on which the device was fitted;

       (m) details of top-up devices;

       (n) contracted service provider's certification details;

       (o) client certification details;

       (p) cost to the client;

       (q) payment details;

       (r) a code indicating why a claim was rejected; and

       (s) any other details about the protesting of the claim.

-       subregulation 3H(4) - allows the HIC to recover service provider debts on behalf of the Commonwealth.

-       subregulation 3H(5) - allows the HIC to offset a service provider debt against a future payment to a service provider.

-       subregulation 3H(6) - provides for the interpretation of a number of expressions:

"client" - this is a term used to mean a person who has received a hearing services which is the subject of a claim.

"contracted service provider" - this defines "contracted. services provider" by cross-reference to section 4 of the Hearing Services Administration Act 1997.

"hearing service" - this defines "hearing service" by cross-reference to section 4 of the Hearing Services Administration Act 1997.

"service provider debt" - this defines "service provider debt" by crossreference to subsection 24(1) of the Hearing Services Administration Act 1997.

"voucher" - this defines "voucher" by cross-reference to section 4 of the Hearing Services Administration Act 1997.

 

Overview

The Health Insurance Commission Regulations (Amendment) 1997 (No. 332) was enacted to update the functions of the Health Insurance Commission (HIC) under the Health Insurance Commission Act 1973. This amendment was necessary due to significant reforms in the delivery of government-funded hearing services, as established by the Hearing Services Administration Act 1997 and the Hearing Services and AGHS Reform Act 1997. These reforms introduced a voucher system that allowed eligible individuals to choose their hearing service providers, either Australian Hearing Services (AHS) or accredited private sector providers. The amendment to regulation 3H of the Health Insurance Commission Regulations enables the HIC to administer this new hearing services scheme, including accepting claims, making payments, releasing information about claims, and recovering debts. The regulations were issued by the Minister for Health and Family Services, with the policy objective of ensuring smooth administration of the new hearing services scheme.

Scope and Application

The Health Insurance Commission Regulations (Amendment) 1997 No. 332 amends the Health Insurance Commission Regulations to update the functions of the Health Insurance Commission (HIC) in accordance with the Hearing Services Administration Act 1997 and the Hearing Services and AGHS Reform Act 1997. These Acts introduced significant reforms to the delivery of government-funded hearing services, including the establishment of a voucher system that allows eligible participants to choose between Australian Hearing Services (AHS) or accredited private sector providers. This amendment to the regulations enables the HIC to perform specific administrative functions in relation to these reforms, including accepting and processing claims from hearing service providers, releasing relevant information about claims and payments to the Office of Hearing Services, and managing service provider debts on behalf of the Commonwealth. These amendments apply to the HIC, hearing service providers, and the Office of Hearing Services, and they align with the broader legislative framework governing the administration of hearing services in Australia.

Key Provisions

The Health Insurance Commission Regulations (Amendment) 1997 (No. 332) introduces key amendments to the Health Insurance Commission Regulations under the Health Insurance Commission Act 1973, specifically altering regulation 3H. Regulation 3H, which previously prescribed certain administrative functions of the Health Insurance Commission (HIC) in relation to hearing services, is being omitted and replaced with a new regulation 3H (subsection 2.1). This amendment is designed to enable the HIC to perform specific functions related to the new hearing services scheme. These functions include accepting claims and making payments to hearing services providers (subregulation 3H(1)), disclosing certain information about claims and payments to the Office of Hearing Services (subregulation 3H(3)), and recovering and offsetting service provider debts (subregulation 3H(4) and 3H(5)). The amendment imposes certain obligations on the HIC. The HIC must now accept claims and make payments to hearing services providers as prescribed under the Hearing Services Administration Act 1997 (subregulation 3H(1)). This obligation is contingent upon the HIC being declared a claims acceptance or claims payment body (subregulation 3H(2)). Additionally, the HIC is required to disclose detailed information about claims and payments to the Office of Hearing Services, including client numbers, voucher numbers, dates of claim submission and processing, details of the services provided, and financial information such as costs and payment details (subregulation 3H(3)). The HIC must also be able to recover debts owed by service providers and offset these debts against future payments (subregulation 3H(4) and 3H(5)). These obligations are integral to the effective administration of the new hearing services scheme. Failure to comply with the requirements set out in these regulations may result in civil or criminal consequences. While the specific penalties for breaches are not detailed in the explanatory statement, under the Health Insurance Commission Act 1973, breaches of regulations generally result in penalties that may include fines. The maximum penalties for such breaches can be substantial, reflecting the importance of compliance with the regulatory framework governing health insurance and hearing services. It is therefore crucial for the HIC to adhere strictly to the obligations imposed by the amended regulation 3H to avoid any potential legal repercussions.

Legal classification tags

Area of Law
Administrative Law
Health Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Licensing & Registration
Enforcement Powers
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.