EXPLANATORY STATEMENT
Military Rehabilitation and Compensation (MRCA Treatment Principles – MRCA Access Payment Increase) Instrument 2006
EMPOWERING PROVISION
Paragraph 286(1)(a) of the Military Rehabilitation and Compensation Act 2004 (the Act).
PURPOSE
The purpose of the attached Instrument is to amend the MRCA Treatment Principles to increase the additional payment (MRCA Access Payment) Local Medical Officers (LMO) may receive for providing certain medical services to members, or former members, of the Defence Force, or to their dependants, who are eligible for treatment under the Act (entitled persons).
The MRCA Treatment Principles are made under paragraph 286(1)(a) of the Act and set out the circumstances in which the Military Rehabiltiation and Compensation Commission may accept financial liability for treatment provided to entitled persons.
An LMO may be paid two distinct payments for treating an entitled person. The main payment is worked out by reference to the Medicare Benefits Schedule and the subsidiary payment (MRCA Access Payment) is set in the MRCA Treatment Principles.
Before the attached Instrument, the MRCA Access Payment was:
- for a medical service other than a Level A attendance (defined in the Medicare Benefits Schedule) — $4.00.
- for a Level A attendance — $5.50.
Pursuant to the attached Instrument the MRCA Access Payment is now:
- for a medical service other than a Level A attendance (defined in the Medicare Benefits Schedule) — $4.20.
- for a Level A attendance — $5.75.
RETROSPECTIVITY
Yes. The attached Instrument will be taken to have commenced on
1 November 2006 ie it is retrospective. Subsection 12(2) Legislative Instruments Act 2003 provides that a retrospective instrument that disadvantages a person, or imposes a liability on a person, is of no effect. The attached instrument does not disadvantage any person or impose a liability on any person. It is beneficial in nature (increases fees for Local Medical Officers).
CONSULTATION
The Rule-Maker (Military Rehabilitation and Compensation Commission) decided that consultation with clients or service providers in respect of the attached Instrument was not necessary because the Instrument was beneficial and, in any event, needed to be made relatively quickly so as to be consistent with modified Treatment Principles made under the new Australian Participants in British Nuclear Tests (Treatment) Act 2006.
The Treatment Principles made under this new Act contained increased “Access Payments” and it would have been anomalous and unfair if lesser access payments for the same services were paid under similar Instruments.
Overview
The Military Rehabilitation and Compensation (MRCA Treatment Principles – MRCA Access Payment Increase) Instrument 2006 was introduced to address the need for increasing the additional payments made to Local Medical Officers (LMO) for providing certain medical services to Defence Force members, former members, or their dependants who are eligible for treatment under the Military Rehabilitation and Compensation Act 2004. This legislation was enacted to ensure that the MRCA Access Payments provided to LMOs are aligned with the updated principles set forth in the Australian Participants in British Nuclear Tests (Treatment) Act 2006, thereby preventing any disparity in the compensation rates for similar services. The instrument was made under the authority of the Military Rehabilitation and Compensation Commission, aiming to promptly update the MRCA Access Payments to reflect the new treatment principles without disadvantaging any party involved. This instrument, which is retrospective and commenced on 1 November 2006, is beneficial in nature as it increases fees for LMOs without imposing any disadvantage or liability on the recipients of the medical services.
Scope and Application
The Military Rehabilitation and Compensation (MRCA Treatment Principles – MRCA Access Payment Increase) Instrument 2006 applies to Local Medical Officers (LMO) who provide certain medical services to members or former members of the Defence Force, or their dependants, who are eligible for treatment under the Military Rehabilitation and Compensation Act 2004. The Act governs the financial liability of the Military Rehabilitation and Compensation Commission for treatment provided to these entitled persons. The Instrument amends the MRCA Treatment Principles to increase the additional payment, referred to as the MRCA Access Payment, that LMOs may receive for their services. This legislative instrument has a Commonwealth reach as it pertains to the administration and application of the Military Rehabilitation and Compensation Act 2004 at the federal level. The retrospective nature of the Instrument, effective from 1 November 2006, ensures that it benefits LMOs without imposing any disadvantage or liability on them. The Military Rehabilitation and Compensation Commission determined that consultation was unnecessary due to the beneficial nature of the Instrument and the need for expeditious implementation in line with the Australian Participants in British Nuclear Tests (Treatment) Act 2006.
Key Provisions
The Military Rehabilitation and Compensation (MRCA Treatment Principles – MRCA Access Payment Increase) Instrument 2006 (Instrument) amends the Military Rehabilitation and Compensation (MRCA) Treatment Principles to adjust the additional payments, known as MRCA Access Payments, that Local Medical Officers (LMO) can receive for providing certain medical services to entitled persons. These are members, or former members, of the Defence Force, or their dependants, who are eligible for treatment under the Military Rehabilitation and Compensation Act 2004 (Act) (s 1). The Instrument specifies that the MRCA Access Payment for medical services other than a Level A attendance, as defined in the Medicare Benefits Schedule, is increased from $4.00 to $4.20, and for a Level A attendance, it is increased from $5.50 to $5.75 (s 3). The changes are effective from 1 November 2006, making the Instrument retrospective (s 4). The Instrument was deemed not to require consultation as it was beneficial and necessary to align with the modified Treatment Principles under the Australian Participants in British Nuclear Tests (Treatment) Act 2006 (s 5).
The Act imposes specific obligations on the parties involved. The Military Rehabilitation and Compensation Commission, as the Rule-Maker, is responsible for setting the MRCA Access Payment under the MRCA Treatment Principles (s 286(1)(a) of the Act). Local Medical Officers who provide medical services to entitled persons under the Act must comply with the new payment rates specified in the Instrument (s 286(1)(a) of the Act). Entitled persons, in turn, must ensure they are treated by LMOs who accept the new payment terms. The Commission must also ensure that the new rates do not disadvantage any person or impose any liability on them (s 12(2) of the Legislative Instruments Act 2003).
The Instrument does not explicitly state any offences, penalties, or consequences for breach. However, the obligations imposed by the Act and the Instrument are integral to ensuring that the revised MRCA Access Payments are correctly applied. Failure to comply with the new payment rates could potentially lead to disputes over payments, requiring resolution through the mechanisms provided under the Act. Additionally, any retrospective adjustments must be handled in accordance with the legislative provisions to avoid any legal challenges under the Legislative Instruments Act 2003, which ensures that retrospective instruments do not disadvantage or impose liabilities on individuals. The beneficial nature of the Instrument means it is unlikely to result in penalties, but adherence to the new rates is crucial for maintaining the integrity of the compensation and rehabilitation system for Defence Force members and their dependants.