EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 86
Subject: Health Insurance Act 1973
Health Insurance (Diagnostic Imaging Services Table) Amendment Regulations 2007 (No. 2)
Subsection 133(1) of the Health Insurance 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.
The Act provides, in part, for payments of Medicare benefits in respect of professional services rendered to eligible persons.
Subsection 4AA(1) of the Act provides that the regulations may prescribe a table of diagnostic imaging services, the amount of fees applicable in respect of each item and the rules for interpretation of the table. The Health Insurance (Diagnostic Imaging Services Table) Regulations 2006 (the Principal Regulations) prescribe such a table.
The purpose of the Regulations is to amend the Principal Regulations to enable Medicare benefits to be paid, from the day after the Regulations are registered, for certain magnetic resonance imaging (MRI) services conducted using specified equipment at
St Vincent’s Hospital in Darlinghurst, NSW.
Paragraph 36(d) of Schedule 1 to the Principal Regulations sets out the conditions under which the equipment in question is regarded as “eligible equipment”. Details of the Regulations are set out in the Attachment.
Industry consultation regarding the payment of Medicare benefits for MRI services is managed through the 2003-2008 Radiology Quality Outlays MoU as a result of a package of measures developed in 1998 to introduce MRI services onto the Medical Benefits Schedule.
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 the day after they are registered on the Federal Register of Legislative Instruments.
ATTACHMENT
Details of the Health Insurance (Diagnostic Imaging Services Table) Amendment Regulations 2007 (No. 2)
Regulation 1 – Name of Regulations
This regulation provides that the title of the Regulations is the Health Insurance (Diagnostic Imaging Services Table) Amendment Regulations 2007 (No. 2).
Regulation 2 – Commencement
This regulation provides for the Regulations to commence on the day they are registered on the Federal Register of Legislative Instruments.
Regulation 3 – Amendment of the Health Insurance (Diagnostic Imaging Services Table) Regulations 2006
This regulation provides that the Health Insurance (Diagnostic Imaging Services Table) Regulations 2006 (the Principal Regulations) are amended as set out in Schedule 1.
Schedule 1 – Amendment
Item [1]
This item inserts the details of the new MRI unit at St. Vincent’s Hospital in Darlinghurst, NSW into table 2 at rule 36 of Part 2 of Schedule 1 to the Principal Regulations.
Pursuant to paragraph 36(d) of Part 2 of Schedule 1, the new specified piece of equipment is “eligible equipment” only if the equipment:
(a) is located at the place specified in Table 2 for that equipment; and
(b) forms part of a comprehensive radiology department at the relevant location that provides, at a minimum, x-ray, computed tomography and ultrasound services; and
(c) is available for use from 9 am to 5 pm each Monday to Friday (excluding public holidays) for routine services, except for periods reasonably required for necessary maintenance, repairs and upgrades; and
(d) is available for use at all times for emergency services, except for periods reasonably required for necessary maintenance, repairs and upgrades.
Overview
The Health Insurance (Diagnostic Imaging Services Table) Amendment Regulations 2007 (No. 2) were enacted to address a specific need within the existing Health Insurance Act 1973. This legislation was introduced to facilitate the payment of Medicare benefits for particular magnetic resonance imaging (MRI) services provided by St Vincent's Hospital in Darlinghurst, NSW. The primary objective of these regulations is to ensure that certain MRI services conducted using specified equipment at the hospital are recognised under the Medicare Benefits Schedule, thereby expanding the scope of services covered by Medicare.
The amendment was authorised by the Governor-General, in accordance with subsection 133(1) of the Health Insurance Act 1973, and it was developed through industry consultation as outlined in the 2003-2008 Radiology Quality Outlays Memorandum of Understanding. These regulations aim to integrate the new MRI unit into the existing framework by specifying the conditions under which the equipment is deemed eligible for Medicare payments. The regulations do not impose any pre-conditions for their enactment, and they came into effect the day after being registered on the Federal Register of Legislative Instruments.
Scope and Application
The Health Insurance (Diagnostic Imaging Services Table) Amendment Regulations 2007 (No. 2) are subordinate legislation under the Health Insurance Act 1973, which governs the payment of Medicare benefits for various health services, including diagnostic imaging services. These regulations specifically target the addition of certain magnetic resonance imaging (MRI) services to the Medicare Benefits Schedule, enabling payments for these services when conducted using specified equipment at St Vincent’s Hospital in Darlinghurst, New South Wales. The regulations are applicable to the equipment listed in Schedule 1, which must meet specific criteria, such as being part of a comprehensive radiology department and available for routine and emergency services within stipulated hours, to be considered "eligible equipment". There are no explicit exclusions or exemptions outlined in the explanatory statement, but the equipment must comply with the conditions set out in the regulations to qualify for Medicare benefits. The regulations extend the application of the Act by detailing the specific circumstances under which MRI services at St Vincent’s Hospital can be reimbursed, thereby broadening the scope of services covered under the Health Insurance Act.
Key Provisions
The main operative sections of the Health Insurance (Diagnostic Imaging Services Table) Amendment Regulations 2007 (No. 2) are set out in Schedule 1, which amends the Health Insurance (Diagnostic Imaging Services Table) Regulations 2006 (the Principal Regulations). Regulation 3 of the amending Regulations specifies that the Principal Regulations are to be amended as detailed in Schedule 1. Specifically, Item [1] of Schedule 1 inserts the details of a new MRI unit at St. Vincent’s Hospital in Darlinghurst, NSW into table 2 at rule 36 of Part 2 of Schedule 1 to the Principal Regulations. This amendment enables the hospital to provide eligible MRI services, subject to certain conditions.
The obligations and requirements imposed by the Regulations on the parties they govern are primarily concerned with the specifications for the MRI equipment and the operational hours for its use. According to paragraph 36(d) of Schedule 1, the MRI equipment at St. Vincent’s Hospital is considered "eligible equipment" if it meets the following criteria: it must be located at the specified place in Table 2, it must be part of a comprehensive radiology department providing x-ray, computed tomography, and ultrasound services, it must be available from 9 am to 5 pm each Monday to Friday (excluding public holidays) for routine services, and it must be available at all times for emergency services, with reasonable exceptions for maintenance, repairs, and upgrades.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in the provided text of the Explanatory Statement or the Regulations themselves. However, non-compliance with the conditions set out for the eligibility of the MRI equipment could potentially lead to issues regarding the provision of Medicare benefits for the services rendered. The failure to meet the specified conditions might result in the hospital not being eligible to receive payments for the services provided under the Medicare scheme, although the exact consequences would depend on further clarification from the relevant administrative or judicial bodies.