National Health Act 1963

Legislation au C1963A00077 Not in force Act

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NATIONAL HEALTH.

 

No. 77 of 1963.

An Act to amend the provisions of the National Health Act 1953-1962 relating to the Special Accounts of Hospital Benefits Organizations.

[Assented to 31st October, 1963.]

BE it enacted by the Queens Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the National Health Act 1963.

(2.) The National Health Act 19531962 is in this Act referred to as the Principal Act.


(3.) The Principal Act, as amended by this Act, may be cited as the National Health Act 1953-1963.

Commencement.

2. This Act shall come into operation on the first day of January, One thousand nine hundred and sixty-four.

Interpretation.

3. Section sixty-six of the Principal Act is amended by omitting from sub-section (2.) the words sections eighty-two b, eighty-two c and inserting in their stead the words sections eighty-two c, eighty-two ca.

Repeal of section eighty-two B.

4.—(1.) Section eighty-two b of the Principal Act is repealed.

(2.) A registered hospital benefits organization that established a special account before the commencement of this Act shall be deemed to be authorized by Division 2 of Part VI. of the Principal Act, as amended by this Act, to make such adjustments to the special account as the Director-General approves or requires in relation to contributions received in respect of persons in relation to whom the section repealed by this section applied, being contributions relating wholly or partly to periods before the commencement of this Act, and if such an organization has failed to make any such adjustment as required by the Director-General, the organization is not entitled to further payments under section eighty-two l of the Principal Act, as amended by this Act, until the adjustment is made.

5. After section eighty-two c of the Principal Act the following section is inserted:—

Certain contributors may be made special account contributors.

82ca.—(1.) Where—

(a) the rules of a registered organization provide for a maximum number of days of hospital treatment during a year or other specified period in respect of which an ordinary contributor is entitled to hospital fund benefit; and

(b) hospital fund benefit becomes payable to an ordinary contributor in respect of any days that fall within the last twenty-one days of that maximum number of days,

the organization may elect to treat the contributor as having become a special account contributor on any day that is included in the days in respect of which the benefit is so payable and, if it so elects, shall, subject to section eighty-two g of this Act credit to its special account the contributions by or on behalf of that contributor in respect of the week in which that day is included and all subsequent weeks.


(2.) The regulations may provide that the last preceding sub-section shall operate as if there were substituted for the reference to twenty-one days a reference to such lesser number of days as is prescribed..

Payment of benefits.

6. Section eighty-two d of the Principal Act is amended by inserting after sub-section (1.) the following sub-section:—

(1a.) The reference in the last preceding sub-section to hospital fund benefit shall be read, in relation to any period of hospital treatment, as not including so much (if any) of the hospital fund benefit in respect of that period as exceeds the amount (if any) by which the sum of the gross fees and extra charges incurred in respect of the contributor during that period is greater than the sum of—

(a) the amount of Commonwealth benefit payable under Division 3 of Part V. of this Act in respect of that period;

(b) any amount of hospital fund benefit paid or payable in respect of the contributor by any other registered hospital benefits organization in respect of that period; and

(c) any amount paid or payable by the same or any other registered hospital benefits organization, or by a registered medical benefits organization, in respect of the extra charges..

Rules of organization establishing special account to contain certain provisions.

7. Section eighty-two e of the Principal Act is amended—

(a) by adding at the end of paragraph (h) of sub-section (1.) the word and;

(b) by omitting paragraph (i) of that sub-section;

(c) by omitting from paragraph (j) of that sub-section the wordand;

(d) by omitting paragraph (k) of that sub-section; and

(e) by adding at the end thereof the following sub-section:

(3.) If the rules of a registered organization that has established a special account do not comply with the requirements that, under sub-section (1.) of this section, for the time being apply in relation to an organization desiring to establish a special account, the registered organization ceases to be entitled to payments under section eighty-two l of this Act..

Special account contributor may be made an ordinary contributor in certain cases.

8. Section eighty-two g of the Principal Act is amended by omitting sub-section (3.).

Overview

The National Health Act 1963 was enacted to address specific issues in the administration and regulation of hospital benefits provided by hospital benefits organizations under the National Health Act 1953-1962. This Act was introduced by the Commonwealth Parliament to amend the Principal Act, particularly concerning the Special Accounts of these organizations. The policy objective is to ensure that the financial management of these accounts is more effectively regulated and that the organizations are held accountable for their administration of benefits. This Act also aims to provide greater flexibility in the treatment of contributors under certain conditions while maintaining the integrity of the benefit system. The legislation repeals certain outdated provisions and introduces new sections to provide clearer guidelines and requirements for the operation of special accounts, including the treatment of contributors who exceed their maximum number of days of hospital treatment. It also includes provisions for the adjustment of special accounts by organizations that established such accounts before the Act came into effect, ensuring that they adhere to the new standards. By doing so, the Act seeks to improve the administration of health benefits and ensure that hospital benefits organizations operate within the framework established by the National Health Act.

Scope and Application

The National Health Act 1963 amends the provisions of the National Health Act 1953–1962 to make specific changes to the Special Accounts of Hospital Benefits Organizations. This Act applies to registered hospital benefits organizations that have established special accounts, particularly those that were established prior to the commencement of this Act. The Act is applicable nationally, as it is a Commonwealth legislation, thereby affecting all states and territories within Australia. The Act modifies the conditions under which certain contributors may be treated as special account contributors and regulates the adjustments and payments related to these accounts. The changes made include the repeal of certain sections and the introduction of new provisions that govern the contributions and benefits associated with special accounts, ensuring compliance with updated requirements. The Act also includes provisions for subordinate regulations to further specify the operational details and exceptions regarding the special accounts.

Key Provisions

The National Health Act 1963 introduces significant amendments to the National Health Act 1953-1962, particularly concerning the Special Accounts of Hospital Benefits Organizations. The Act comes into effect on 1 January 1964 and amends the Principal Act to refer to it as the National Health Act 1953-1963. The interpretation section clarifies that certain references in the Principal Act are updated to reflect the new provisions (s. 3). One of the key changes is the repeal of section eighty-two b of the Principal Act (s. 4), which previously dealt with specific provisions related to special accounts. Organizations that had established special accounts before the commencement of this Act must now obtain approval from the Director-General for any adjustments to these accounts concerning contributions received before the Act's commencement. Failure to comply with such adjustments disqualifies these organizations from further payments under section eighty-two l of the amended Principal Act until the required adjustments are made. The Act also introduces a new section, 82ca, which allows registered organizations to treat certain contributors as special account contributors under specific conditions (s. 5). This provision applies when an organization's rules limit the number of hospital treatment days for which an ordinary contributor is entitled to benefits and hospital fund benefit becomes payable for days within the last twenty-one days of that period. In such cases, the organization may credit the special account with contributions related to the weeks in which the benefit is payable. The regulations can adjust the number of days specified in this provision. Furthermore, section 82d of the Principal Act is amended to ensure that hospital fund benefits do not exceed the amount by which the gross fees and extra charges exceed the sum of Commonwealth benefits, other hospital fund benefits, and extra charges (s. 6). Additionally, section 82e of the Principal Act is revised to include new requirements for the rules of registered organizations with special accounts (s. 7). If these rules do not meet the updated criteria for establishing a special account, the organization loses its entitlement to payments under section 82l of the amended Act. Lastly, section 82g of the Principal Act is amended by removing subsection (3), which previously allowed for certain conditions under which a special account contributor could be treated as an ordinary contributor (s. 8). The Act imposes specific obligations on registered hospital benefits organizations regarding their special accounts. Organizations must ensure that their rules comply with the new requirements set forth in the amended Principal Act. Failure to make necessary adjustments to their special accounts, as approved by the Director-General, results in a suspension of payments under section 82l until compliance is achieved. Organizations must also adhere to the new provisions regarding the treatment of contributors as special account contributors, as outlined in section 82ca. Any non-compliance with these requirements may lead to financial penalties or the cessation of payments. Breach of the provisions in the Act can lead to significant consequences. Organizations that fail to adjust their special accounts as required by the Director-General are ineligible for payments under section 82l until the necessary adjustments are made. Moreover, failure to comply with the new rules regarding special accounts can result in the loss of entitlement to payments under section 82l of the amended Principal Act. These provisions are designed to ensure that organizations adhere to the specified guidelines and maintain the integrity of the special accounts.

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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.