EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 5
Health Insurance Act 1973
Health Insurance (General Medical Services Table) Amendment Regulations 2010 (No. 1)
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.
Part II of the Act provides for the payment of Medicare benefits for professional services rendered to eligible persons. Section 9 of the Act provides that Medicare benefits are calculated by reference to the fees for medical services set out in prescribed tables.
Subsection 4(1) of the Act provides that the regulations may prescribe a table of medical services (other than diagnostic imaging services and pathology services) which sets out items of medical services, the amount of fees applicable for each item, and rules for interpreting the table. The Health Insurance (General Medical Services Table) Regulations 2008 prescribe such a table. (The retrospective date of these amendments means that the 2008 Regulations were in force at the time the amendments commenced).
The Regulations amend the descriptors for nine deep brain stimulation (DBS) items to allow Medicare benefits to be payable for the treatment of essential tremor and dystonia, both of which are neurological disorders.
The Regulations are taken to have commenced on 1 July 2009. The Office of Legislative Drafting and Publishing has provided advice that the Regulations do not contravene subsection 12(2) of the Legislative Instruments Act 2003. The amendments have the effect of including treatment of patients with essential tremor or dystonia (that may not amount to Parkinson’s) in the items that are being amended. This potentially allows more for claims for benefits and does not remove or reduce any right to claim that existed before the amendments.
The Act specifies no conditions which need to be met before the power to make the Regulations is exercised.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation was undertaken by correspondence with Medicare Australia, the Australian Medical Association, the Australian and New Zealand Association of Neurologists and the Neurosurgical Society of Australasia. The fees committees of the medical organisations considered the amendments to the existing items and agreed to support them.
Overview
The Health Insurance Act 1973 was enacted to provide a framework for the provision of Medicare benefits for professional services rendered to eligible persons, ensuring equitable access to healthcare services across Australia. The Act was designed to address the need for a structured system of health insurance that could offer financial protection and access to essential health services for all Australians. Under the authority granted by subsection 133(1) of the Act, the Governor-General has the power to make regulations that are necessary for carrying out or giving effect to the Act, including prescribing tables of medical services and fees. The Health Insurance (General Medical Services Table) Amendment Regulations 2010 (No. 1) were introduced to align the descriptors for certain deep brain stimulation items, thus expanding the scope of Medicare benefits to include the treatment of essential tremor and dystonia, conditions previously not explicitly covered under the existing regulations. These amendments were made following consultations with relevant medical associations and societies, reflecting a commitment to updating the regulatory framework to meet evolving healthcare needs and ensuring that patients with specific neurological disorders can access necessary treatments.
Scope and Application
The Health Insurance (General Medical Services Table) Amendment Regulations 2010 (No. 1) pertain to the Health Insurance Act 1973, which governs the payment of Medicare benefits for professional services rendered to eligible individuals. These regulations specifically amend the descriptors for certain deep brain stimulation items to facilitate Medicare benefits for the treatment of essential tremor and dystonia, neurological conditions that may not necessarily qualify as Parkinson’s disease. The legislative framework applies to entities and individuals involved in the provision of medical services and the administration of Medicare benefits. Geographically, the Act and its amendments apply across Australia, as it is a Commonwealth legislation. The regulations do not impose any specific exclusions or thresholds but instead expand the scope of services eligible for Medicare benefits. The Act allows for further detailed rules to be prescribed through subordinate instruments, ensuring the flexibility to adapt to new medical advancements and treatment needs. The amendments were supported by consultations with relevant medical associations and societies, reflecting a collaborative approach to healthcare policy.
Key Provisions
The Health Insurance (General Medical Services Table) Amendment Regulations 2010 (No. 1) introduces specific amendments to the Health Insurance Act 1973, particularly targeting the General Medical Services Table. These amendments, referenced in subsection 133(1) of the Act, are designed to adjust the descriptors for nine deep brain stimulation (DBS) items. By doing so, the Regulations seek to allow Medicare benefits to be payable for the treatment of essential tremor and dystonia, which are neurological disorders (Section 9). The Act mandates that Medicare benefits are calculated based on the fees for medical services set out in prescribed tables, and subsection 4(1) of the Act empowers the regulations to set such tables, which was the basis for the 2008 Regulations.
Under these new amendments, the descriptors for the specified DBS items have been modified to ensure that the services rendered for the treatment of essential tremor and dystonia are now eligible for Medicare benefits. This change is significant as it broadens the scope of medical services covered under Medicare, potentially allowing more patients to claim benefits for these treatments. The Regulations were taken to have commenced on 1 July 2009, which means that from that date, the amended descriptors were applicable. The Office of Legislative Drafting and Publishing has confirmed that these Regulations do not contravene subsection 12(2) of the Legislative Instruments Act 2003, ensuring their legality and validity.
The obligations imposed by these Regulations are primarily on medical practitioners, patients, and Medicare Australia. Medical practitioners must ensure that their services align with the amended descriptors to be eligible for Medicare benefits. Patients with essential tremor or dystonia must receive services that fall under the newly amended DBS items to claim benefits. Medicare Australia, on the other hand, is obligated to process claims based on the updated descriptors and ensure that benefits are correctly calculated and paid. The consultation process involved correspondence with Medicare Australia, the Australian Medical Association, the Australian and New Zealand Association of Neurologists, and the Neurosurgical Society of Australasia, whose fees committees supported the amendments.
For breaches of the provisions in these Regulations, there are potential civil and criminal consequences. While specific penalties are not detailed in the Explanatory Statement, it is understood that breaches of Medicare regulations can result in significant penalties. Civil penalties can include fines, and in severe cases, criminal penalties may apply, leading to prosecution. The exact penalties would be determined based on the nature and severity of the breach, in accordance with the Health Insurance Act 1973 and other relevant legislation. The amendments, however, do not remove or reduce any existing rights to claim benefits, ensuring that patients and practitioners are not adversely affected.