EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 152
HEALTH INSURANCE COMMISSION REGULATIONS (AMENDMENT)
Issued by Authority of the Minister for 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.
Section 4 of the Act provides for the establishment by the Act of the Health Insurance Commission (‘the Commission’). Section 8A of the Act provides that the functions of the Commission are to conduct a medical benefits fund or a hospital benefits fund, or both, in accordance with rules determined by the Commission.
By virtue of section 8C of the Act the functions conferred on the Commission under Part IIB of the Act are additional to those conferred under section 8A. Subsection 8E(1) of that Part provides that the Commission shall perform such functions in relation to health insurance as are prescribed.
The statutory rules, in amending the Health Insurance Commission Regulations (‘the Regulations’) prescribe functions conferred on the Commission for the purposes of sub-section 8E(1) of the Act. These new functions relate to A.M.W.S.U. Health Care Limited (‘the organization’), a company incorporated in the State of Victoria, registered under Part VI of the National Health Act 1953 as a registered medical benefits and registered hospital benefits organization. The functions are to administer on behalf of the organization, in accordance with an agreement entered into with the organization, the medical benefits and hospital benefits funds conducted by the organization, and to act as trustee of moneys received on behalf of the organization.
The statutory rules would have the effect of authorising retrospectively the entering into, on 29 October 1982, of an agreement between the Commission and the organization. Under this agreement the Commission agreed, with effect from 1 November 1982, to perform extensive administrative tasks on behalf of the organization in relation to the medical and hospital benefits funds conducted by the organization. The Attorney-General’s Department advised that the Commission was not authorised by the Act or the Regulations to enter into
the agreement. Such authority is provided by the statutory rules.
The statutory rules are deemed to have come into operation on 29 October 1982. This retrospectivity of operation does not affect the rights of, or impose liabilities on, any person in a manner prohibited by sub-section 48(2) of the Acts Interpretation Act 1901.
Overview
The Health Insurance Commission Regulations (Amendment) Statutory Rules 1983 were enacted to address the issue of the Health Insurance Commission (the Commission) lacking the necessary authority to enter into an agreement with A.M.W.S.U. Health Care Limited, as required under the Health Insurance Commission Act 1973. This was identified as a gap in the legislative framework, as the Commission had been performing administrative tasks for the organization since 29 October 1982 without the appropriate authorisation. These statutory rules were issued by authority of the Minister for Health and were designed to retrospectively authorise the agreement entered into between the Commission and A.M.W.S.U. Health Care Limited, thereby ensuring the Commission's functions were compliant with the Act. The policy objective was to provide the Commission with the requisite authority to perform its functions in relation to health insurance as prescribed, without affecting any existing rights or liabilities of individuals under the Acts Interpretation Act 1901.
Scope and Application
The Health Insurance Commission Regulations (Amendment) Statutory Rules 1983 No. 152, issued under the authority of the Minister for Health, amend the Health Insurance Commission Regulations to confer additional functions on the Health Insurance Commission, established under the Health Insurance Commission Act 1973. These functions pertain specifically to A.M.W.S.U. Health Care Limited, a company incorporated in Victoria and registered under the National Health Act 1953. The amended regulations empower the Commission to administer medical and hospital benefits funds on behalf of the organisation, in accordance with an agreement entered into with it, and to act as trustee of the funds received. The statutory rules provide retrospective authorisation for an agreement dated 29 October 1982, under which the Commission agreed to undertake extensive administrative tasks for the organisation’s funds, effective from 1 November 1982. The Attorney-General's Department confirmed that the Commission lacked the requisite authority to enter into this agreement under the existing Act and Regulations, an issue addressed by these statutory rules. Notably, the rules are deemed to have come into effect on 29 October 1982, but they do not alter any existing rights or liabilities contrary to subsection 48(2) of the Acts Interpretation Act 1901.
Key Provisions
The primary operative sections of the Health Insurance Commission Regulations (Amendment) are sections 4 and 8A of the Health Insurance Commission Act 1973. Section 4 establishes the Health Insurance Commission, while section 8A outlines the functions of the Commission, which include conducting medical and hospital benefits funds in accordance with the rules determined by the Commission. The amendment to the regulations, detailed in Statutory Rules 1983 No. 152, specifically addresses the additional functions conferred on the Commission by section 8E(1) of the Act. This includes administering medical and hospital benefits funds for A.M.W.S.U. Health Care Limited, a registered medical and hospital benefits organization in Victoria, and acting as trustee for the funds received on behalf of the organization.
The obligations imposed on the parties governed by the Act include the Health Insurance Commission, which is now tasked with additional administrative and trustee functions for A.M.W.S.U. Health Care Limited. This includes ensuring that all administrative tasks related to the medical and hospital benefits funds are carried out as per the agreement between the Commission and the organization. Additionally, the Commission must adhere to any rules or guidelines set forth by the Act and ensure that the funds are managed in compliance with all applicable laws and regulations. The organization, A.M.W.S.U. Health Care Limited, must also ensure that it meets all requirements under the National Health Act 1953 and any other relevant legislation.
There are no specific offences, penalties, or consequences outlined in the statutory rules for breach of the amended regulations. However, any breach of the terms of the agreement between the Commission and A.M.W.S.U. Health Care Limited could potentially lead to legal action or administrative penalties under the overarching legislation, such as the Health Insurance Commission Act 1973 or the National Health Act 1953. It is important for both parties to ensure compliance with their obligations to avoid any potential legal or financial repercussions. The retrospective effect of the statutory rules, deemed to have come into operation on 29 October 1982, does not affect the rights of any person in a manner prohibited by the Acts Interpretation Act 1901.