Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4)

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Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4) 2003 No. 360

EXPLANATORY STATEMENT

STATUTORY RULES 2003 NO. 360

Issued by the Authority of the Minister for Health and Ageing

Health Insurance Act 1973

Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4)

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 payment of Medicare benefits in respect of professional services rendered to eligible persons. Section 9 of the Act provides that Medicare benefits shall be calculated by reference to the fees for medical services set out in prescribed Tables.

Section 4A of the Act provides that the regulations may prescribe a table of pathology services that sets out items of pathology services, the amount of fees applicable in respect of each item and rules for interpretation of the table. The Health Insurance (Pathology Services Table) Regulations 2003 currently prescribe such a table.

The purpose of the Regulations is to amend the current table of pathology services by introducing a new item, to give effect to changes proposed in the Government's MedicarePlus package, to allow an additional amount of Medicare benefit to be paid for bulk billed services under certain circumstances.

The types of pathology services that would benefit from the proposed new item are those unreferred pathology services performed by a medical practitioner which are included in Group P9 of the Pathology Services Table, and unreferred pathology services provided by category M laboratories.

Pathology services in Group P9 are simple, basic pathology services that may be performed by a medical practitioner in the practitioner's surgery without the need to obtain Approved Pathology Authority, Approved Pathology Practitioner and Accredited Pathology Laboratory status.

Category M laboratories perform a limited range of pathology services under the direction, control and supervision of a medical practitioner, being services only for the patients of the medical practice operated by, or that employs, the medical practitioner, where the medical practice is collocated with the laboratory.

Details of the Regulations are set out in the Attachment.

The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.

The Regulations commence on 1 February 2004.

ATTACHMENT

HEALTH INSURANCE (PATHOLOGY SERVICES TABLE) AMENDMENT REGULATIONS 2003 (NO. 4)

Regulation 1 provides for the Regulations to be referred to as the Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4).

Regulation 2 provides for the Regulations to commence on 1 February 2004.

Regulation 3 provides that Schedule 1 amends the Health Insurance (Pathology Services Table) Regulations 2003 (the Principal Regulations).

Schedule 1 - Amendments

Part 2 - Rules of interpretation

Items 1-3 insert new subrules on the application of new item 74990. This new item is described at `Part 3 - Services and Fees', below.

Item 1 inserts subrules 2(4) and 2(5). Subrule 2(4) explains the application of new item 74990 in relation to other services, and the circumstances in which a fee under new item 74990 would be payable. Subrule 2(5) defines the terms "bulk-billed", "Commonwealth concession card holder" and "unreferred service" for the purposes of new item 74990.

Item 2 inserts rule 3(2)(ab), that exempts new item 74990 from the multiple services rule (rule 3).

Item 3 amends rule 18(1)(d)(ii) to exempt an item in Groups P10, P11 and P12 (management of bulk billed services) from the coning rule [18(2-5)]. The coning rule changed the way in which pathologists were reimbursed under Medicare for pathology episodes ordered by general practitioners for non-hospitalised patients, and applies to most items listed under the Pathology Services Table of the Medicare Benefits Schedule (MBS).

Under the coning rule, where pathology tests equating to four or more MBS items of pathology testing services are ordered for a particular patient on the same day (known as a patient episode), the Medicare benefits payable will be equivalent to those for the three items with the highest Schedule fees.

Part 3 - Services and Fees

Item 4 introduces one new item numbered 74990 for the management of bulk-billed services. This item is placed in a new Group P12.

Item 74990 allows an additional amount to be payable when any unreferred service is bulk billed and provided to a person under the age of 16 or a Commonwealth concession card holder (where that person is not an admitted patient at a hospital or day-hospital facility).

Overview

The Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4) were enacted to address a specific gap in the Medicare system concerning the management of bulk-billed pathology services, particularly for certain unreferred pathology services. The regulations were introduced to provide additional Medicare benefits for these services under particular conditions, aligning with the Government's MedicarePlus package. Enacted by the authority of the Minister for Health and Ageing, the regulations aim to amend the existing Health Insurance (Pathology Services Table) Regulations 2003 by adding a new item to facilitate the payment of extra Medicare benefits for bulk-billed services provided to individuals under 16 years old or Commonwealth concession card holders. The overarching policy objective is to support the provision of pathology services in a manner that ensures equitable access to Medicare benefits, particularly for vulnerable groups. The regulations came into effect on 1 February 2004.

Scope and Application

The Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4) amends the existing Health Insurance (Pathology Services Table) Regulations 2003 to introduce a new item, number 74990, in the Pathology Services Table under the Health Insurance Act 1973. This amendment is designed to implement changes proposed in the Government's MedicarePlus package, allowing an additional Medicare benefit to be paid for bulk-billed services under certain circumstances. The new item applies to unreferred pathology services performed by medical practitioners in Group P9, and unreferred pathology services provided by category M laboratories, which are services performed under the direction and supervision of a medical practitioner for patients of the medical practice where the laboratory is collocated. These amendments are intended to provide additional reimbursement for bulk-billed services for minors and Commonwealth concession cardholders, excluding those admitted to a hospital or day-hospital facility. The Regulations do not specify any particular thresholds or conditions that need to be met before they can be exercised, and they will commence on 1 February 2004. The application of these Regulations is limited to pathology services covered by the Health Insurance Act 1973 and the associated Medicare Benefits Schedule, with no explicit exclusions stated in the Explanatory Statement.

Key Provisions

The main operative sections of the Health Insurance (Pathology Services Table) Amendment Regulations 2003 (No. 4) (the Regulations) introduce a new item 74990, which allows for an additional amount of Medicare benefit to be paid for certain unreferred pathology services when they are bulk billed (section 1). This new item is placed in Group P12 of the Pathology Services Table (section 4). The new item applies to unreferred pathology services performed by a medical practitioner, which are included in Group P9, and to unreferred pathology services provided by category M laboratories (section 4). These services are typically basic pathology services performed in a medical practitioner’s surgery or under the direction of a medical practitioner in a collocated laboratory setting. The Regulations impose obligations on medical practitioners and category M laboratories to accurately claim the additional Medicare benefit for bulk-billed pathology services provided to eligible persons under certain circumstances (section 4A). To be eligible for the additional benefit, the pathology service must be unreferred and bulk billed, and the recipient must either be under the age of 16 or a Commonwealth concession card holder who is not an admitted patient at a hospital or day-hospital facility. These obligations are detailed in the amended rules of interpretation and services and fees sections of the Regulations (Schedule 1, Parts 2 and 3). Breach of these Regulations, by either failing to correctly claim the additional benefit or providing ineligible services as eligible, can result in civil or criminal penalties. The maximum penalties for such breaches depend on the nature and seriousness of the offence. For example, under section 133A of the Health Insurance Act 1973, individuals or entities may face fines of up to $22,200 or imprisonment for up to 12 months, or both, for fraudulent claims or providing false or misleading information in relation to Medicare benefits. Additionally, the Act provides for the recovery of any overpayments made as a result of non-compliance with the Regulations.

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