Health Insurance (Variation of Fees and Medical Services) (No. 37) Regulations

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EXPLANATORY STATEMENT

STATUTORY RULES 1985 NO. 149

ISSUED BY AUTHORITY OF THE MINISTER FOR HEALTH

HEALTH INSURANCE ACT 1973

HEALTH INSURANCE (VARIATION OF FEES AND MEDICAL SERVICES) (NO. 37) REGULATIONS

Section 133 of the Health Insurance Act 1973 (‘the Act’) provides in part that the Governor-General may make regulations 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.

Schedule 1 to the Act contains a table of medical services and rules for the interpretation of the table. The table of medical services contains items which set out the description of each medical service, and the fee for the calculation of medicare benefit applicable in each State in respect of the service.

Section 4 of the Act provides that the table of medical services, items or rules of interpretation in Schedule 1 to the Act may be varied or replaced by


regulations, and that regulations replacing such a table may be amended by regulations. The Health Insurance (Variation of Fees and Medical Services) (No 36) Regulations, as amended by subsequent regulations, prescribed the previous table of medical services in pursuance of section 4 of the Act.

Section 9 of the Act provides that medicare benefit shall be calculated by reference to fees for medical services set out in the table of medical services in Schedule 1 to the Act. Medicare benefit is normally payable, in accordance with section 10 of the Act, at a rate of 85% of the relevant fee specified in the table of medical services. An additional amount of medicare benefit is payable where required to ensure that the difference between the benefit normally payable and the fee specified in the table of medical services does not exceed $10.00 in relation to a single professional service, or an aggregate of $150.00 per patient in a year in relation to multiple professional services.

The regulations repeal the regulations prescribing the previous table of medical services and prescribe, pursuant to section 4 of the Act, a replacement


table of medical services incorporating the following amendments of the present table:-

 increased fees for the calculation of medicare benefits in accordance with the determination of the 1985 Medical Fees Enquiry;

 revision of items in the table in accordance with recommendations of the Schedule Revision Committee and otherwise agreed to by the Minister for Health;

 inclusion of new items and other related amendments in respect of the performance of magnetic resonance imaging; and

 minor textual amendments.

The 1985 Medical Fees Enquiry, an independent public enquiry conducted by Mr Deputy President K.C. McKenzie of the Australian Conciliation and Arbitration Commission, determined increases in fees for medical benefits purposes to apply from 1 July 1985 to 30


April 1986. The Treasurer and the Ministers for Employment and Industrial Relations and Health, on behalf of the Government, had previously agreed to accept the determination of the Enquiry. The determined increases range between 3.42% for anaesthetic services and 3.87% for pathology services. The effect of the increases is, for example, to increase the fee specified in the table of medical services for a standard consultation with a general practitioner in New South Wales from $15.00 to $15.60 and the related medicare benefit from $12.75 to $13.30.

The amendments of the table, other than the increase to fees described above, affect 127 new or previous items and comprise the following:

 the amendment of the description of medical service in 72 items;

 the insertion of 32 new items;

 the deletion of 20 items;


 the amendment of the description of medical service and fee in 1 item; and

 the amendment of the fee in 2 items.

These amendments, which result principally from recommendations of the Schedule Revision Committee, are necessary to ensure that the items included in the table reflect developments in current medical practice. The Schedule Revision Committee is a body comprising 5 representatives of the Australian Medical Association and 5 Commonwealth Officers which advises the Minister for Health in relation to desirable amendments of the table of medical services.

The amendments relating to the performance of magnetic resonance imaging are directed to the control of Commonwealth financing of this expensive new diagnostic technique. To this end, two new items have been inserted into the table of medical services and an amendment made to rule 19 of the rules of interpretation in the table. The effect of this is that, inter alia, for medicare benefits to be payable, magnetic resonance imaging will have to be performed using the equipment of a public


hospital or a radiology unit operated by the Commonwealth, a State or an authority of a State, the Northern Territory, the Capital Territory Health Authority, or an Australian University.

The regulations came into operation on 1 July 1985.

Overview

The Health Insurance (Variation of Fees and Medical Services) (No. 37) Regulations 1985 were enacted to address the need for updating the fees for medical services and the table of medical services as outlined in the Health Insurance Act 1973. These regulations were issued by the authority of the Minister for Health under Section 133 of the Act, which empowers the Governor-General to make regulations necessary for carrying out the Act. The overarching policy objective is to ensure that the fees for medical services and the table of medical services accurately reflect current medical practices and technological advancements, thereby maintaining the integrity and effectiveness of the Medicare system. The regulations incorporate increased fees based on the 1985 Medical Fees Enquiry, revisions recommended by the Schedule Revision Committee, and specific amendments for magnetic resonance imaging services, ensuring that the table of medical services remains relevant and responsive to the evolving landscape of medical practice.

Scope and Application

The Health Insurance (Variation of Fees and Medical Services) (No. 37) Regulations, made under the Health Insurance Act 1973, apply to the variation of fees and medical services related to medicare benefits provided by the Commonwealth. These regulations are applicable to all medical practitioners, health service providers, and patients who are beneficiaries of the Medicare scheme in Australia. They govern the fees for medical services that are set out in the table of medical services, which is a part of Schedule 1 to the Act. The table lists various medical services, their descriptions, and the fees for these services in each State, which are used to calculate the medicare benefit payable to patients. The Act allows for the fees and services to be varied by regulation, with the current regulations replacing the previous table of medical services. The regulations also include provisions for the payment of additional medicare benefits to ensure that the difference between the benefit normally payable and the fee specified in the table does not exceed certain limits. The Act extends its reach across the Commonwealth of Australia, affecting medical practitioners and patients nationwide. However, the specific fees are determined for each State, reflecting regional variations in costs and practice. The regulations do not contain explicit exclusions, but the scope of their application is limited to medical services listed in the table of medical services in Schedule 1 to the Act. The application of the Act and these regulations can be further extended or restricted through subordinate instruments, such as additional regulations or guidelines issued by the Minister for Health.

Key Provisions

The Health Insurance (Variation of Fees and Medical Services) (No. 37) Regulations primarily deal with the variation of fees and the amendment of the table of medical services under the Health Insurance Act 1973 (section 4). These regulations replace the previous table of medical services with a new one that incorporates various changes, including increased fees for medical services, revisions based on recommendations from the Schedule Revision Committee, and the inclusion of new items for magnetic resonance imaging. The changes to the table are intended to reflect current medical practices and ensure the accuracy of Medicare benefits payable (section 9). The obligations imposed by these regulations include ensuring that medical service fees and descriptions are updated as per the new table, and that the revised table is used for calculating Medicare benefits. Medical practitioners, patients, and healthcare providers must adhere to these updated fees and descriptions when claiming or paying for services. Additionally, for magnetic resonance imaging, the equipment used must meet specific criteria to qualify for Medicare benefits, ensuring that such expensive diagnostic techniques are appropriately regulated (Schedule 1). Any breach of these regulations may have legal consequences. While the explanatory statement does not detail specific offences, penalties, or consequences for non-compliance, under the Health Insurance Act 1973, penalties for non-compliance can include fines and, in severe cases, criminal charges. The exact penalties would be determined by the relevant provisions of the Act, but they can be significant, reflecting the importance of adhering to Medicare regulations to ensure the integrity of the healthcare funding system.

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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.