EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO 219
ISSUED UNDER THE AUTHORITY OF THE MINISTER FOR DEFENCE MILITARY FINANCIAL REGULATIONS (AMENDMENT)
The Military Financial Regulations, made under the Defence Act, prescribe financial conditions of service for the Army.
Members of the Army receive free medical and dental treatment to maintain the level of health and fitness required for Army service.
Despite this entitlement, it is the practice to recover the costs of treatment where the necessity for the treatment arose in circumstances which give a member a legal claim against another person (eg a motor vehicle accident).
In such cases, a determination is made under Military Financial Regulation 262 requiring the member to repay the cost of the treatment. The member then includes the amount of the determination in his claim.
In practice, where a member has such a claim, the member is not required to repay to the Commonwealth the costs incurred on his behalf unless and until he receives damages in respect of his medical expenses.
Where the medical treatment is provided by a non-Commonwealth hospital, the cost to be recovered by the Commonwealth is established by the account or accounts rendered by the hospital.
However, where a member receives treatment at a Repatriation hospital or a Defence Force hospital, it is not possible to identify the exact
amount which the Commonwealth has spent on a particular patient. The cost of medical treatment in these situations has been assessed at an average daily rate which includes the cost to the hospital of providing medical treatment as well as a proportion of normal hospital running costs.
Where legal proceedings are taken in these circumstances, difficulties have been encountered in proving that the amount which a member is liable to repay to the Commonwealth does not exceed the expense incurred by the Commonwealth.
The Attorney-General’s Department suggested that this difficulty of proof could best be overcome by prescribing a scale of rates which would be deemed to be the cost of a member’s treatment in a Defence Force or Repatriation hospital.
This Statutory Rule amends regulation 262 of the Military Financial Regulations to achieve that result.
The rates adopted are those prepared by the Department of Veterans’ Affairs for internal costing purposes, showing the cost per bed day per patient in the Repatriation hospitals in the various States. Each set of rates covers a 12 month period. The rates cover periods of treatment after 1 July 1975.
Regulation 2 of the Statutory Rule makes three amendments to regulation 262.
The first amendment provides that the Minister may require a member who has been provided with medical treatment at a Defence Force or Repatriation hospital in a State to pay to the Commonwealth an amount calculated in accordance with a Schedule to the Regulations in respect of the number of days he was an in-patient and the State in which the hospital is situated.
The second amendment makes clear that the provisions cover persons who received hospital, medical or other treatment at the expense of the Commonwealth and who have since ceased to be members of the Defence Force.
The third amendment provides for the day on which a member enters hospital and the day he leaves to be treated as a single day for the purposes of counting the number of days a member is an in-patient.
Regulation 3 of the Statutory Rule inserts a Schedule incorporating the rates.
Regulation 1 of the Statutory Rule also makes minor changes to the definitions of medical treatment to ensure that dental treatment as well as hospital treatment is included and to make the definitions more consistent.
The Statutory Rule has effect from the date of gazettal.
Overview
The Military Financial Regulations (Amendment) Statutory Rules 1982 No. 219, issued under the authority of the Minister for Defence, were enacted to address the practical difficulties encountered in determining the exact costs incurred by the Commonwealth when members of the Army receive medical treatment from Defence Force or Repatriation hospitals. Despite the entitlement of Army members to free medical and dental treatment, the Commonwealth has been challenged to accurately recover costs when the need for treatment arises from circumstances for which the member has a legal claim against another party. This issue is particularly complex when treatment is provided by Defence Force or Repatriation hospitals, as the exact cost of treatment cannot be easily ascertained.
The Statutory Rules were designed to establish a scale of rates deemed to be the cost of a member's treatment in Defence Force or Repatriation hospitals, thereby facilitating the recovery of costs in such circumstances. By prescribing these rates, which are based on the cost per bed day per patient in Repatriation hospitals, the rules aim to streamline the process of determining the amount a member is liable to repay to the Commonwealth. This amendment ensures that the costs recovered do not exceed the expenses actually incurred by the Commonwealth, thereby resolving the difficulties previously experienced in proving the amount owed.
Scope and Application
The Military Financial Regulations (Amendment) Statutory Rule, issued under the authority of the Minister for Defence, primarily applies to members of the Army who have received medical treatment at the expense of the Commonwealth, including those who have since ceased to be members of the Defence Force. It specifies the financial conditions of service for Army members, particularly focusing on the recovery of costs for medical and dental treatment when the treatment is necessitated by circumstances that entitle the member to a legal claim against another party. This Act is applicable across all states in Australia, as it pertains to Defence Force and Repatriation hospitals located in various states. The Statutory Rule also provides for the recovery of costs when treatment is received from non-Commonwealth hospitals, with the exact cost being determined by the accounts rendered by the hospital. Notably, the Act does not specify any exclusions or exemptions and applies to all members who meet the criteria outlined, regardless of their current status with the Defence Force. The rules extend through the incorporation of a schedule detailing rates for treatment costs, which are used to calculate the amount a member is liable to repay to the Commonwealth.
Key Provisions
The Military Financial Regulations (Amendment) Statutory Rule (No. 219 of 1982) modifies the Military Financial Regulations, which are established under the Defence Act and govern the financial conditions of service for Army members. Specifically, it amends regulation 262 to address the recovery of costs for medical and dental treatment provided to Army members. This is done to ensure that the Commonwealth can recover costs from members when the necessity for treatment arose from circumstances that entitle the member to claim against another person, such as a motor vehicle accident. The amended regulation (262) now mandates that members who receive treatment at Defence Force or Repatriation hospitals must repay the Commonwealth an amount calculated based on a predetermined schedule of rates (Regulation 3). These rates, which are derived from the Department of Veterans’ Affairs, reflect the average cost per bed day per patient in Repatriation hospitals across various states, covering periods post-1 July 1975. This change aims to simplify the process of proving the amount a member is liable to repay, as it provides a clear, predetermined rate for reimbursement.
Under the amended regulation, the Minister has the authority to require members who received treatment at Defence Force or Repatriation hospitals to pay back to the Commonwealth an amount based on the number of days they were in-patients and the state where the hospital is located. This requirement extends to individuals who have ceased to be members of the Defence Force but who received treatment at the expense of the Commonwealth. Additionally, the amendment ensures that the day of admission and the day of discharge from hospital are treated as a single day for calculating the number of days a member is considered an in-patient. The definition of medical treatment has also been updated to include dental treatment and to ensure consistency across the regulations.
The Statutory Rule imposes obligations on members of the Army who have received medical or dental treatment at Defence Force or Repatriation hospitals, particularly when the treatment was necessitated by circumstances that allow for a claim against another party. Members must repay the Commonwealth the calculated amount based on the schedule of rates, which is determined by the number of days they were in-patients and the location of the hospital. This obligation extends to former members who received treatment while still serving in the Defence Force. The rule also necessitates that the costs of treatment provided by non-Commonwealth hospitals are established based on the accounts rendered by those hospitals. For Defence Force and Repatriation hospitals, the predetermined rates in the schedule simplify the recovery process.
The Statutory Rule does not explicitly outline specific offences, penalties, or consequences for breaches. However, it is implied that failure to comply with the requirement to repay the calculated amount could result in legal action or administrative penalties, as the rule is intended to facilitate the recovery of costs by the Commonwealth. The precise nature and extent of penalties would likely be governed by other relevant laws or regulations, but these are not detailed in the Statutory Rule itself. The rule’s focus is on establishing a clear and consistent method for determining and recovering the costs of treatment provided to Army members under certain circumstances.