Health Insurance Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1996B02833 Regulations Not in force Legislative Instrument

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Health Insurance Regulations (Amendment) 1994 No. 138

EXPLANATORY STATEMENT

STATUTORY RULES 1994 No. 138

Issued by the authority of the Minister for Human Services and Health

Health Insurance Act 1973

Health Insurance Regulations (Amendment)

The Health Insurance Act 1973 (the Act) provides for payments by way of medicare benefits, payments for hospital services and payments for matters concerning related committees and tribunals.

Section 133 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

The Act, as amended by the Health Legislation (Professional Services Review) Amendment Act 1994, provides for the creation from 1 July 1994 of the Professional Services Review Scheme.

The Scheme provides for the establishment of Professional Services Review Committees to review the conduct of practitioners (doctors, dentists, optometrists, chiropractors, physiotherapists and podiatrists) in connection with the rendering or initiating of services under Medicare to determine if the practitioner under review has engaged in inappropriate practice.

The Professional Services Review Scheme will replace the current Committees of Inquiry which consider whether a medical practitioner, a dental practitioner or an optometrist has rendered excessive services under Medicare.

Section 106B of the Act provides that, like the current Committees of Inquiry, Professional Services Review Committees will be able to summons persons to appear at hearings to give evidence. Subsection 106C(1) of the Act provides for payment of allowances to such witnesses in accordance with the regulations. The payment of witnesses at hearings of Committees of Inquiry is covered by existing Regulation 24.

Subregulation 3.1 repeals Regulation 24 and substitutes the payment of allowances to witnesses at hearings of Professional Services Review Committees in accordance with Schedule 2 of the Health Insurance Regulations. That Schedule specifies that the witness will be paid the allowance that he or she would be paid under the scale in the Second Schedule to the Federal Court Rules, in force from time to time, if called before the Federal Court of Australia.

Subregulation 4.1 deletes reference to Committees of Inquiry in Schedule 2 and substitutes reference to Professional Services Review Committees.

Subregulation 5.1 is a transitional provision that allows for a continuation of payments, on and after 1 July 1994, to witnesses at hearings of current Committees of Inquiry until those Committees have concluded any matters outstanding immediately before the commencement of the Professional Services Review Scheme.

The Regulations come into effect on 1 July 1994.

 

Overview

The Health Insurance Regulations (Amendment) 1994 No. 138, issued by the Minister for Human Services and Health, amend the Health Insurance Act 1973 to implement the Professional Services Review Scheme, which aims to replace existing Committees of Inquiry that reviewed the conduct of healthcare practitioners in relation to Medicare services. This amendment introduces new Professional Services Review Committees to assess the appropriateness of practitioner conduct and services under Medicare. The regulations ensure the smooth transition of witness payment provisions from the existing Committees of Inquiry to the new Professional Services Review Committees, maintaining consistency and fairness in the review process. The objective is to provide a more efficient and structured framework for reviewing practitioner conduct while ensuring that witnesses are compensated appropriately for their involvement in the review hearings.

Scope and Application

The Health Insurance Regulations (Amendment) 1994 No. 138 amends the Health Insurance Regulations under the Health Insurance Act 1973, introducing significant changes related to the payment of allowances to witnesses appearing at hearings of Professional Services Review Committees. These Committees are established to review the conduct of healthcare practitioners in connection with the rendering or initiating of services under Medicare. The amendment applies to doctors, dentists, optometrists, chiropractors, physiotherapists, and podiatrists who are subject to review under the Professional Services Review Scheme, which replaces the previous Committees of Inquiry system. The regulations ensure that witnesses summoned to give evidence at these hearings are compensated according to the scale set out in the Second Schedule to the Federal Court Rules. The changes, which include repealing and substituting certain regulations, come into effect on 1 July 1994, and include a transitional provision allowing for continued payments to witnesses of ongoing Committees of Inquiry until they conclude any outstanding matters before the commencement of the new Scheme.

Key Provisions

The Health Insurance Regulations (Amendment) 1994 No. 138 introduces significant changes to the Health Insurance Act 1973, primarily concerning the establishment of the Professional Services Review Scheme. This scheme, effective from 1 July 1994, replaces the existing Committees of Inquiry with Professional Services Review Committees. These new committees are tasked with reviewing the conduct of healthcare practitioners, including doctors, dentists, optometrists, chiropractors, physiotherapists, and podiatrists, in relation to services rendered under Medicare to identify any inappropriate practices. Section 106B of the Act empowers these committees to summon individuals to give evidence at hearings, a power that is already exercised by the current Committees of Inquiry. Under the amended regulations, the allowances paid to witnesses appearing at these hearings are also subject to change. Specifically, subregulation 3.1 repeals the existing Regulation 24, which deals with witness payments for Committees of Inquiry, and replaces it with provisions for payments to witnesses at hearings of Professional Services Review Committees. According to Schedule 2 of the Health Insurance Regulations, witnesses will now be compensated according to the scale set out in the Second Schedule to the Federal Court Rules, which applies to witnesses appearing before the Federal Court of Australia. Subregulation 4.1 further refines this by updating Schedule 2 to reflect the change from Committees of Inquiry to Professional Services Review Committees. Lastly, subregulation 5.1 ensures a smooth transition by allowing the continuation of payments to witnesses at hearings of the existing Committees of Inquiry until these committees have concluded any outstanding matters before the commencement of the new scheme on 1 July 1994. The Health Insurance Regulations (Amendment) 1994 No. 138 imposes several obligations on the parties and entities it governs. The key obligation is the establishment and operation of the Professional Services Review Committees as per the new scheme. These committees must adhere to the legislative requirements set out in the Act and the Regulations to review the conduct of healthcare practitioners. Additionally, healthcare practitioners who are summoned to give evidence at these hearings must comply with the summons and provide the necessary testimony. The regulations also mandate that witness payments be made in accordance with the specified allowances outlined in Schedule 2 of the Health Insurance Regulations, ensuring consistency and fairness in compensation for all witnesses involved. Failure to comply with the provisions of the Health Insurance Regulations (Amendment) 1994 No. 138 may result in various consequences, both civil and criminal. While the explanatory statement does not specify the exact penalties for non-compliance, it is reasonable to infer that any breaches of the regulations could lead to legal action. For example, healthcare practitioners who fail to appear or provide the required evidence at a hearing may face disciplinary actions or other legal repercussions. Similarly, entities that do not adhere to the payment provisions for witnesses could be subject to fines or other penalties as prescribed under the Health Insurance Act 1973. The precise nature and severity of these consequences would depend on the specific provisions of the Act and any related laws.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.