Health Insurance (Variation of Fees and Medical Services) (No. 47) Regulations

Legislation au C2004L04871 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

STATUTORY RULES 1987 No. 160

HEALTH INSURANCE ACT 1973

HEALTH INSURANCE (VARIATION OF FEES AND MEDICAL SERVICES) (No 47) REGULATIONS

Section 133 of the Health Insurance Act 1973 (“the Act”) provides in part 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.

Section 9 of the Act provides in effect that medicare benefits shall be calculated by reference to the fees for medical services set out in the table of general medical services in Schedule 1 to the Act.

Section 4 of the Act provides, among other things, that the regulations may prescribe a table of medical services (other than pathology services) in accordance with the form of the table set out in Schedule 1 and that upon commencement of a regulation prescribing a table of medical services the table so prescribed has effect as if it were set out in Schedule 1 in the place of the table in that Schedule. The Health Insurance (Variation of Fees and Medical Services) Regulations prescribe such a table.


The Minister for Health agreed to recommendations which were made by the Medical Benefits Schedule Revision Committee. The Committee is a non-statutory body, comprising representatives of the Australian Medical Association and the Commonwealth, which advises the Minister for Health on revisions which should be made to the table of general medical services. The Committee recommended the addition, deletion or alteration of the description of a number of items in the table. Recommendations were also made by the Committee in connection with the adjustment of fees for medical services. The regulations reflect these recommendations.

The Minister for Health also agreed to certain recommendations made by the Medical Benefits Review Committee. This Committee was established to undertake a major review of the Medical Benefits Schedule and, amongst other things, to report on what action should be taken, for medicare benefits purposes and to simplify the Schedule to make it more readily understandable to practitioners. The Committee made recommendations to alter the description of the “Family Group Therapy” items and transfer those Services from Part 6 of the Schedule to Part 1. These now appear as items 170, 171 and 172.

The regulations also amend the Health Insurance (Variation of Fees and Medical Services) Regulations in a number of other ways flowing from the May Economic Statement. To effect savings in Medicare expenditure Cabinet has agreed, among other things, to -


(a) abolish the after-hours loading for all GP consultation items and provide partial compensation for brief and standard consultation items;

(b)   (i) a new lower fee structure for computerised axial tomography (CAT);

 (ii) a reduction in fees for existing non-specialist radiological services to a uniform 75 per cent of relevant specialist fees; and

(iii) a reduction of 25 per cent in the fee for item 793 (Ultrasound);

(c) a 5 per cent reduction in radiology fees, other than CAT and Ultrasound;

(d) in respect of optometrical services -

  (i) halve the schedule fee for contact lens prescriptions;

 (ii) preclude the use of item 182 for contact lenses; and

(iii) increase the minimum period between consultation episodes to 24 months;

(e) withdraw benefits from multiphasic health screening;

(f) changes to the schedule fees for -


 endoscopy;

 keratosis;

 consultants; and

 cataract surgery; and

(g) a schedule fee increase averaging 6.1 per cent across the board from 1 August 1987;

Additionally, the Minister also approved changes to the Schedule concerning -

 consultant physician services (other than psychiatry);

 ophthalmology;

 electrocardiography (ECG);

 obstetrics;

 intravenous drips.

The regulations reflect the above amendments.

The regulations also include amendments to the Rules for the Interpretation of the Table of General Medical Services. These amendments are largely consequential, but also include amendments to clarify the application of items to certain services and to make the Rules gender neutral.

The opportunity has also been taken to correct the following errors previously contained in the Schedule:


 Item 2732 - by omitting a reference to “Rule 19” and inserting a correct reference to “Rule 20”.

 Item 2734 - by deleting the previous reference to the item as number “234” and substituting the correct item number of “2734”.

 Item 6508 - by deleting the word “hysteroctomy” and substituting the correct word “hysterotomy”.

Authority: Section 133 of the Health Insurance Act 1973 Cabinet Decision 9511 of 8 May 1987.

Overview

The Health Insurance (Variation of Fees and Medical Services) (No 47) Regulations 1987 were enacted to address various issues and gaps within the existing framework of the Health Insurance Act 1973. These regulations were made under Section 133 of the Act, which allows for the creation of rules necessary or convenient for the Act's implementation. They were approved by the Minister for Health following recommendations from the Medical Benefits Schedule Revision Committee and the Medical Benefits Review Committee, aiming to revise and adjust the table of general medical services and associated fees. The policy objective was to streamline and rationalise the medical benefits schedule, ensuring it remained fair, efficient, and understandable for practitioners, while also incorporating measures to control Medicare expenditure as directed by Cabinet decisions.

Scope and Application

The Health Insurance (Variation of Fees and Medical Services) (No 47) Regulations 1987 are a set of rules that implement changes to the fees and descriptions for various medical services under the Health Insurance Act 1973. These regulations apply to all medical practitioners, allied health professionals, and patients who access services covered by Medicare, the national public health insurance scheme in Australia. They affect all medical services listed in the table of general medical services, except for pathology services, and are intended to reflect recommendations from the Medical Benefits Schedule Revision Committee and the Medical Benefits Review Committee. The changes include adjustments to fees and descriptions of services, such as the abolition of after-hours loading for general practitioner consultations, reductions in fees for certain radiological services, and alterations to the descriptions and classifications of various medical items. These regulations have a nationwide reach, as they are made under the authority of the Commonwealth of Australia and affect the entire Medicare system. The changes implemented by these regulations are intended to align the fees and descriptions of medical services with current medical practices and to achieve savings in Medicare expenditure as agreed upon by Cabinet.

Key Provisions

The main operative sections of the Health Insurance (Variation of Fees and Medical Services) (No 47) Regulations (C2004L04871) concern the regulation of fees and services under the Health Insurance Act 1973. Section 4 of the Act empowers the Minister for Health to prescribe a table of medical services (excluding pathology services), which the regulations implement. Section 9 of the Act mandates that Medicare benefits are calculated based on fees set out in the table of general medical services. The regulations prescribe such a table, incorporating recommendations from the Medical Benefits Schedule Revision Committee and the Medical Benefits Review Committee. Additionally, the regulations adjust fees and descriptions of various medical services in line with the May Economic Statement, including changes to GP consultation items, CAT fees, non-specialist radiological services, optometrical services, and various other medical procedures. The regulations impose several obligations and requirements on the parties governed by them. Firstly, they require the Medical Benefits Schedule to be updated with new descriptions and fees for various medical services. This includes the addition, deletion, or alteration of items in the table of general medical services, as recommended by the Medical Benefits Schedule Revision Committee and the Medical Benefits Review Committee. Secondly, the regulations mandate changes to the fees for medical services, as agreed upon by the Cabinet. This involves adjustments to fees for services such as GP consultations, CAT, non-specialist radiological services, optometrical services, and other specified medical procedures. Thirdly, the regulations also include amendments to the Rules for the Interpretation of the Table of General Medical Services to clarify the application of certain items and to make the rules gender neutral. The Health Insurance (Variation of Fees and Medical Services) (No 47) Regulations also set forth specific offences and penalties for breaches, although no explicit penalties are mentioned in the explanatory statement. Under the Health Insurance Act 1973, non-compliance with the regulations could potentially lead to civil or criminal consequences. For example, failure to adhere to the prescribed fees and descriptions of medical services could result in legal action for incorrect billing or non-compliance with Medicare regulations. Penalties for such breaches could include fines, restitution, or other corrective measures as determined by the relevant authorities. The maximum penalties, however, are not detailed in the explanatory statement but would typically be outlined in the Health Insurance Act or related legislative instruments.

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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.