EXPLANATORY STATEMENT
1989 No. 96
SUBJECT - HEALTH INSURANCE COMMISSION ACT 1973
HEALTH INSURANCE COMMISSION REGULATIONS (AMENDMENT)
ISSUED ON THE AUTHORITY OF THE MINISTER FOR COMMUNITY SERVICES AND HEALTH
Section 44 of the Health Insurance Commission Act 1973 (the Act) provides 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.
Subsection 8E(1) of the Act provides that the Health Insurance Commission (the Commission) shall perform such functions in relation to health insurance as are prescribed and such functions in relation to other matters relating to health as are prescribed.
Regulation 4 of the Health Insurance Commission Regulations previously prescribed, for the purposes of subsection 8E(1), as a function of the Commission, the processing and payment, on behalf of the Repatriation Commission, of claims for payment submitted to the Repatriation Commission in respect of the provision of medical treatment to persons under ‘Part IV of the Repatriation Regulations’. The Regulation defined ‘Repatriation Commission’ as ‘the Commission established under section 7 of the Repatriation Act 1920’.
The Veterans’ Entitlements Act 1986 (the VE Act), however, repealed, with effect from 20 May 1986, the Repatriation Act 1920. The medical treatment referred to above - previously provided under Part IV of the Repatriation Act 1920 - is now provided under Part V of the VE Act. The Repatriation Commission - formerly in existence by virtue of section 7 of the Repatriation Act 1920 - now continues in existence by virtue of section 179 of the VE Act.
Despite these changes made by the VE Act, Regulation 4 of the Health Insurance Commission Regulations was never amended to reflect them. The Regulation has, therefore, now been amended to put beyond doubt the validity of payments made under it by the Commission since 22 May 1986. This has been done by prescribing, for the purposes of subsection 8E(1) of the Act, this task as a function of the Commission with retrospective effect from 22 May 1986. The amendment will not prejudicially affect the rights of any person nor will it impose any liability on any person. It simply puts beyond doubt the validity of the past payments and provides for the continued performance of this function by the Commission in the future.
The Commission has also, since 24 April 1985, processed, on behalf of the Repatriation Commission, claims in respect of the provision of medical treatment to eligible recipients under Division 2 of Part IV of the Seamen’s War Pensions & Allowances Regulations. Such a function, however, had never been prescribed under subsection 8E(1) of the Act. The amending Regulations have, therefore, amended Regulation 4 to put beyond doubt the validity of these payments as well. They have done this by prescribing, for the purposes of subsection 8E(1) of the Act, this task as a function of the Commission with retrospective effect from 24 April 1985. Again, the retrospective nature of the proposed amendment will not prejudicially affect any person’s rights or impose any liability on any person.
Overview
The Health Insurance Commission Regulations (Amendment) 1989 was introduced to amend the Health Insurance Commission Regulations, which were made under the Health Insurance Commission Act 1973. This legislative amendment was necessitated by the repeal of the Repatriation Act 1920 and its replacement with the Veterans’ Entitlements Act 1986. The Veterans’ Entitlements Act altered the framework for the provision of medical treatment, which was previously under the Repatriation Act, thereby necessitating an update to the relevant regulations governing the Health Insurance Commission’s functions. The objective of these amendments was to ensure the continued validity of payments made by the Health Insurance Commission since the legislative changes and to clarify the scope of the Commission's functions in processing claims related to medical treatment for eligible recipients under the new legislative framework. These amendments were made by the Minister for Community Services and Health and were designed to ensure that no rights were adversely affected and no new liabilities were imposed on any individual.
Scope and Application
The Health Insurance Commission Act 1973 applies to the Health Insurance Commission and its various functions as prescribed by the Act and its Regulations. The Act specifically enables the Governor-General to make Regulations, not inconsistent with the Act, which prescribe matters necessary for carrying out the Act's provisions. The Health Insurance Commission Regulations, amended under the authority of the Minister for Community Services and Health, detail the specific functions of the Commission, such as processing and payment of claims for medical treatment provided under the Repatriation Act 1920, which was repealed and replaced by the Veterans’ Entitlements Act 1986. This amendment to the Regulations ensures the retrospective validity of payments made by the Commission since 22 May 1986 and includes processing claims for medical treatment to eligible recipients under the Seamen’s War Pensions & Allowances Regulations from 24 April 1985. The Regulations do not impose any new rights or liabilities on individuals, only clarifying the validity of past payments and allowing the Commission to continue these functions in the future.
Key Provisions
The main sections of the Health Insurance Commission Regulations (Amendment) involve amendments to Regulation 4. This amendment (Section 4) ensures that the Health Insurance Commission (the Commission) can continue to process and pay claims for medical treatment under the Veterans’ Entitlements Act 1986 (VE Act), and under the Seamen’s War Pensions & Allowances Regulations, without any legal uncertainty. The amendment clarifies that these functions have been performed by the Commission since certain dates and makes the continuation of these tasks legitimate with retrospective effect from 22 May 1986 for the VE Act and from 24 April 1985 for the Seamen’s War Pensions & Allowances Regulations.
The Act imposes a clear obligation on the Commission to perform these specific functions in relation to health insurance and other health matters as prescribed. The amendment ensures that the Commission’s historical actions in processing claims for medical treatment on behalf of the Repatriation Commission are validated and that such activities can continue in the future without any legal impediments. The Regulations now explicitly state that these tasks are functions of the Commission, thereby solidifying their legitimacy and enabling the Commission to continue these activities without interruption.
There are no explicit offences, penalties, or civil or criminal consequences outlined for breach of these Regulations. The primary aim of the amendment is to validate past actions and to ensure the smooth continuation of these functions going forward, without any prejudicial effects on individuals or the imposition of new liabilities. The legislative intent is to provide legal certainty and continuity, rather than to impose punitive measures. The maximum penalties, if any, would be those applicable under the broader legislative framework of the Health Insurance Commission Act 1973, but these are not specified in the amendment itself.