Health Insurance Commission Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1998B00095 Regulations Not in force Legislative Instrument

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Health Insurance Commission Regulations (Amendment) 1998 No. 103

EXPLANATORY STATEMENT

STATUTORY RULES 1998 NO. 103

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.

Regulation 3 of the Health Insurance Commission Regulations (the Regulations) deals with functions of the HIC in the area of investigations relating to inappropriate practice. 'Inappropriate practice" has the same meaning as in Part VAA of the Health Insurance Act 1973 (the HI Act).

Originally Divisions 3 and 3A of Part V of the HI Act contained provisions relating to the now defunct Medical Services Committees of Inquiry and Optometrical Services Committees of Inquiry. Included in these Divisions were certain offence provisions directed at conduct connected with these Committees -for example, failure to appear on a summons, witness refusal to answer a question.

The Health Legislation (Professional Services Review) Amendment Act 1994 (the amendment Act) repealed divisions 3 and 3A of Part V of the HI Act and included transitional provisions (Part 4 of the amendment Act) to cover then current referrals and continuation of unconcluded matters. All Medical Services Committees of Inquiry and Optometrical Services Committees of Inquiry have long since been concluded.

The amendment Act substituted a new inquiry regime (including establishment of Professional Services Review Committees), under Part VAA of the HI Act. As with the earlier inquiry scheme, there are specific offence provisions here directed at conduct connected with these Committees.

Further, some additional offences relating to Committee functioning (for example, failure to produce documents, obstruction of the Committee) were inserted in the HI Act by the Health Insurance Amendment Act (No. 1) 1997.

Previous subparagraph 3(2)(c)(ii) of the Regulations, which included references to the repealed offence provisions, is now being omitted. A new subparagraph 3(2)(c)(ii) is substituted which contains appropriate references to current offence provisions.

Details of the Regulations are set out in the Attachment.

The Regulations commenced on gazettal.

ATTACHMENT

Details of Amendments to Subparagraph 3(2)(c)(ii)

The purpose of the amendment to subparagraph 3(2)(c)(ii) of the Health Insurance Commission Regulations is to remove references to repealed offence provisions and to substitute references to the current offence provisions.

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 omission of subparagraph 3(2)(c)(ii) and

       substitution of a new subparagraph. New subparagraph 3(2)(c)(ii) no longer contains

       reference to certain now-repealed offence provisions, but now contains reference to

       the equivalent current offence provisions of the Health Insurance Act 1973, namely:

-       section 106D - failure to appear on a summons at a hearing;

-       section 106EA - obstructing or hindering the Committee or disrupting a

hearing;

-       subsection 104(4) - giving of false or misleading evidence by a person under

review;

-       subsection 104(4A) - failure by a person under review to appear at a hearing

and produce notified documents;

-       subsection 105A(3) - failure by a person to produce notified documents prior

to a hearing;

-       subsection 105A(5) - knowingly producing a document containing a false or

misleading statement;

-       subsection 106E(1) - refusal to be sworn or answer questions by a person

appearing as a witness;

-       subsection 106E(2) - giving of false or misleading evidence by a person.

References to offences under section 23DP and subsections 19D(2) and 19D(7) in the previous subparagraph 3(2)(c)(ii) are maintained in the new subparagraph 3(2)(c)(ii).

 

Overview

The Health Insurance Commission Regulations (Amendment) 1998 No. 103 were enacted to update the Health Insurance Commission Regulations (1973) in response to legislative changes that had occurred over the years. The Health Insurance Commission Act 1973 established the functions of the Health Insurance Commission, and the Regulations were made to provide detailed rules for these functions. However, the Health Legislation (Professional Services Review) Amendment Act 1994 and the Health Insurance Amendment Act (No. 1) 1997 introduced changes that required the Regulations to be updated to reflect the new offence provisions related to professional services reviews. This amendment aimed to ensure that the Regulations accurately referenced the current offence provisions in the Health Insurance Act 1973, thereby maintaining consistency and effectiveness in the oversight and regulation of health insurance practices.

Scope and Application

The Health Insurance Commission Regulations (Amendment) 1998 No. 103 amends the Health Insurance Commission Regulations to reflect changes in the Health Insurance Act 1973, specifically regarding the regulation of professional services review. The amended regulations apply to the Health Insurance Commission and the functions it performs, which include investigations into inappropriate practices. These investigations are defined under the current inquiry regime established by Part VAA of the Health Insurance Act. The regulations apply to conduct and transactions relevant to the Commission’s investigative functions, particularly in the context of professional services reviews. The amendment ensures that the regulations align with the current legislative framework by removing references to repealed offence provisions and replacing them with references to the new offence provisions. These offences include failure to appear on a summons, obstructing a committee, providing false or misleading evidence, and other related conduct that may impede the review process. The regulations apply nationally and are subject to the Commonwealth jurisdiction. No specific exclusions or thresholds are mentioned, but the applicability is confined to the updated offence provisions within the Health Insurance Act. The changes are effective from the date of gazettal, and further detail is provided in the attached amendments.

Key Provisions

The Health Insurance Commission Regulations (Amendment) 1998 No. 103 makes specific amendments to the Health Insurance Commission Regulations under the Health Insurance Commission Act 1973, primarily updating references to reflect changes in the Health Insurance Act 1973. Regulation 3, which deals with the functions of the Health Insurance Commission (HIC) in investigations relating to inappropriate practice, is of particular importance. The amendment removes references to repealed offences and replaces them with references to current offence provisions. This includes updating the references to align with the new inquiry regime established under Part VAA of the Health Insurance Act 1973, and incorporating additional offences introduced by the Health Insurance Amendment Act (No. 1) 1997. The amended regulations impose certain obligations and requirements on the HIC and other entities governed by the Health Insurance Commission Act 1973. These obligations include conducting investigations into inappropriate practice as defined under the Act and ensuring compliance with the current offence provisions. The HIC must now adhere to the updated regulatory framework that reflects the current legal standards and procedures for handling investigations and related offences. This includes ensuring that all investigations are conducted in accordance with the specified offence provisions, such as failure to appear on a summons, obstructing or hindering a Committee, and providing false or misleading evidence. There are several offences and potential penalties outlined in the amended regulations and the underlying Health Insurance Act 1973. For example, failure to appear on a summons at a hearing (section 106D) or obstructing or hindering a Committee or disrupting a hearing (section 106EA) can result in legal consequences. Similarly, giving false or misleading evidence by a person under review (subsection 104(4)) or knowingly producing a document containing a false or misleading statement (subsection 105A(5)) can lead to penalties. While the specific maximum penalties are not detailed in the explanatory statement, they are likely to be significant, given the serious nature of these offences. The amendments ensure that the HIC and other entities are aware of and comply with the updated legal standards to maintain the integrity and effectiveness of the investigation processes.

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Health Law
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Regulation
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Definitions & Interpretation
Offence Provisions
Repeal & Amendment

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