EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 326
ISSUED BY AUTHORITY OF THE MINISTER FOR HEALTH
HEALTH INSURANCE ACT 1973
HEALTH INSURANCE REGULATIONS (AMENDMENT)
Section 133 of the Health Insurance Act 1973 provides in part that the Governor-General may make regulations, not inconsistent with that Act, prescribing all matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to that Act.
Sub-section 4(1) of the Acts Interpretation Act 1901 provides in part that where an Act that is not to come into operation immediately upon its enactment will confer power to make regulations then, unless the contrary intention appears, the power may be exercised before the Act concerned comes into operation. Sub-section 4(2) provides that such regulations will come into operation at the same time that the Act concerned comes into operation.
The purpose of the Health Insurance Regulations (Amendment) is to make administrative arrangements prior to the amendment of the Health Insurance Act by provisions of the Health Legislation Amendment Act 1986 (Act No. 75 of 1986, assented to on 24 June 1986) That Amendment Act will insert the following sections in the Health Insurance Act:
• section 23DJ, which will provide that where a person gives an undertaking in relation to an application to be an approved pathology provider or an approved pathology authority, together with a fee, and the undertaking is not accepted, the fee shall be repaid to the person in accordance with the regulations;
• paragraph 23DN(1)(b), which will require a fee to be prescribed in relation to an application for the approval of premises as an accredited pathology laboratory; and
• sub-section 23DN(8), which will provide that where a person applies for the approval of premises as an accredited pathology laboratory, together with a fee, and the application is not granted, the fee shall be repaid to the person in accordance with the regulations.
Regulations 2CB and 2CD provide for the repayment of fees to be made in full and forwarded to the person at the address which the person has specified.
Regulation 2CC provides for an amount of fee which will vary depending upon whether the premises concerned have already been accredited under specified State legislation or not.
Overview
The Health Insurance Regulations (Amendment) 1986, issued under the authority of the Minister for Health, were enacted to facilitate administrative adjustments required by the Health Legislation Amendment Act 1986. This amendment introduced significant changes to the Health Insurance Act 1973, particularly in relation to the regulation of pathology providers and laboratories. The primary objective of these amendments is to establish a structured process for the repayment of fees associated with unsuccessful applications for approval as a pathology provider or laboratory, ensuring transparency and fairness in the regulatory process. These regulations, which came into effect alongside the Health Legislation Amendment Act, aim to streamline administrative procedures and provide clear guidelines for the financial transactions involved in the approval process for pathology-related services.
Scope and Application
The Health Insurance Regulations (Amendment) issued under the Health Insurance Act 1973, pertain to individuals and entities seeking approval as pathology providers or authorities, and those applying for accreditation of pathology laboratories. These regulations apply nationally, as they are a Commonwealth instrument, and thus extend across all states and territories within Australia. They aim to ensure that fees paid by applicants for these approvals or accreditations are refunded under specified conditions, such as when an application is not accepted or granted. The regulations also cater to the stipulations introduced by the Health Legislation Amendment Act 1986, which will insert new sections into the Health Insurance Act governing the repayment of fees for non-accepted applications and the prescribed fees for accredited pathology laboratory applications. The amendments facilitate a structured and transparent process for fee management within the pathology sector, ensuring that applicants are appropriately reimbursed when their applications do not result in the desired approval or accreditation.
Key Provisions
The Health Insurance Regulations (Amendment) primarily focus on administrative arrangements that will be necessary following the amendment of the Health Insurance Act 1973 by the Health Legislation Amendment Act 1986. Specifically, sections 2CB, 2CD, and 2CC of these regulations address the handling of fees in relation to applications for approval as pathology providers or laboratories. Under section 23DJ, when a person submits an application to be an approved pathology provider or authority, along with a requisite fee, and the application is not accepted, section 2CB mandates that the fee must be fully refunded to the applicant according to the regulations. Similarly, for applications to approve premises as accredited pathology laboratories, section 23DN(1)(b) requires a fee to be prescribed, and section 23DN(8) stipulates that if such an application, inclusive of the fee, is not granted, the fee must be refunded in full as per the regulations, which is governed by section 2CD.
The obligations under these regulations for parties involved are primarily administrative and financial. For applicants who submit applications for approval as pathology providers or laboratories, the key obligation is to ensure that they provide the necessary fee as part of their application process. Should their application be declined, they are entitled to a full refund of the fee, which must be processed in accordance with the outlined regulations. For the approving authority, the obligation is to implement the refund process as stipulated by sections 2CB and 2CD, ensuring that the refund is made in full and sent to the specified address of the applicant.
Any failure to comply with these refund obligations could result in legal consequences. While the specific penalties for non-compliance are not detailed in the provided text, the Health Insurance Act generally includes provisions for penalties for non-compliance with its regulations. Typically, penalties for such breaches could include fines or other civil remedies. It is important to note that specific maximum penalties would be determined by the courts based on the severity and intent of the breach, but they could potentially encompass significant financial penalties and other corrective actions to ensure compliance.