Health Insurance Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1996B02818 Regulations Not in force Legislative Instrument

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Health Insurance Regulations (Amendment) 1991 No. 314

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 314

HEALTH INSURANCE ACT 1973

HEALTH INSURANCE REGULATIONS (AMENDMENT)

ISSUED ON THE AUTHORITY OF THE MINISTER FOR HEALTH, HOUSING AND COMMUNITY SERVICES

Section 133 of the Health Insurance Act 1973 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Subsection 19A(1) of the Act provides that such regulations may provide that, unless the Minister otherwise directs, medicare benefits are not payable in respect of professional services rendered in prescribed circumstances. Subsection 19A(2) provides that, in the case of professional services other than pathology services, such regulations shall not be made except in accordance with a recommendation made to the Minister by the Medicare Benefits Advisory Committee.

Subregulation 2ADB(1) of the Health Insurance Regulations provides that, unless the Minister otherwise directs, medicare benefits are not payable in respect of professional services rendered in prescribed circumstances. Subregulation 2ADB(2) sets out what these prescribed circumstances are.

The Minister for Health, Housing and Community Services has approved a recommendation made by the Medicare Benefits Advisory Committee that medicare benefits should not be payable for certain organ transplants. These amending Regulations have, therefore, amended Regulation 2ADB of the Health Insurance Regulations to implement this recommendation. Specifically, subregulation 2ADB(2) has been amended to include, as 'prescribed circumstances' for the purposes of subregulation 2ADB(1), professional services rendered for the purpose of, or in relation to:

(i)       the transplantation of a thoracic or abdominal organ, other than a kidney, or of a part of an organ of that kind; or

(ii)       the transplantation of a kidney in conjunction with the transplantation of a thoracic or other abdominal organ, or of a part of an organ of that kind;

if the services are rendered to an in-patient of a hospital.

 

Overview

The Health Insurance Regulations (Amendment) 1991 No. 314 was enacted to address the issue of payment for certain organ transplant services under the Health Insurance Act 1973. This regulation was introduced to align with the recommendation of the Medicare Benefits Advisory Committee, which advised against the payment of medicare benefits for specific organ transplant procedures. The amendments were made under the authority of the Minister for Health, Housing and Community Services, and the policy objective was to ensure that the regulation of medicare benefits reflects the advisory committee's recommendations. By amending subregulation 2ADB(2) of the Health Insurance Regulations, the Minister implemented the committee's advice that benefits should not be payable for certain organ transplants, specifically thoracic or abdominal organ transplants other than kidneys, or kidney transplants performed in conjunction with other organ transplants. This change was aimed at ensuring that the regulation of medicare benefits is both efficient and reflective of expert advice in the field of healthcare.

Scope and Application

The Health Insurance Regulations (Amendment) 1991 No. 314 applies to all entities and individuals within the scope of the Health Insurance Act 1973, particularly those engaged in providing professional healthcare services. The amendments target the payment of medicare benefits for certain medical services, specifically organ transplants. The amendments apply nationally, as they pertain to the Health Insurance Act which is a Commonwealth Act. The amendments are made in accordance with a recommendation from the Medicare Benefits Advisory Committee, and they are subject to the oversight and direction of the Minister for Health, Housing and Community Services. The stated exclusion from medicare benefits pertains specifically to certain organ transplant services provided to in-patients of a hospital, including the transplantation of thoracic or abdominal organs (excluding kidneys), parts of such organs, or kidneys in conjunction with other organ transplants. The scope of the amendments extends to these specific circumstances as outlined in the amended subregulation 2ADB(2) of the Health Insurance Regulations.

Key Provisions

The main operative sections of the Health Insurance Regulations (Amendment) 1991 No. 314 concern the amendment of Regulation 2ADB under the Health Insurance Act 1973. Section 133 of the Act allows the Governor-General to make regulations for the purposes of the Act, and subsection 19A(1) provides that such regulations may specify circumstances under which medicare benefits are not payable for professional services. In this case, the regulation specifies that unless otherwise directed by the Minister, medicare benefits are not payable for professional services rendered in prescribed circumstances, which now include organ transplants as per the amendment. Subregulation 2ADB(2) sets out these prescribed circumstances, which have been expanded to include the transplantation of thoracic or abdominal organs other than kidneys, and the transplantation of kidneys in conjunction with other organ transplants, when these services are rendered to in-patients of a hospital. The obligations and requirements imposed by the amended regulations primarily concern health service providers and hospitals. Health service providers must ensure that the services they render for organ transplants fall within the prescribed circumstances outlined in the amended subregulation 2ADB(2). This includes verifying that the services are rendered to in-patients of a hospital. Hospitals, in turn, have the obligation to ensure that professional services related to organ transplants are conducted under the understanding that medicare benefits may not be payable unless otherwise directed by the Minister. There are no explicit offences or penalties stated within the amending regulations themselves. However, the failure to comply with these regulations could potentially result in civil or administrative consequences, such as the denial of medicare benefits for services rendered under the specified conditions. While the regulations do not detail specific penalties, any breach of the Health Insurance Act 1973 or its regulations could result in enforcement actions by the relevant authorities, which might include fines or other sanctions as prescribed under the Act. It is essential for all parties involved to adhere to these regulations to avoid any potential repercussions.

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