EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 322
NATIONAL HEALTH REGULATIONS (AMENDMENT)
Issued by Authority of the Minister for Health
Section 140 of the National Health Act 1953 (‘the Act’) provides that the Governor-General may make regulations prescribing all matters which are required or permitted by the Act to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Sub-section 69(1) of the Act provides that the regulations shall make provision for and in relation to the manner and form in which applications for registration as a registered health benefits organization under Part VI of the Act are to be lodged, and the documents and information which are to be furnished in support of, or in connection with, such applications.
Regulation 19 of the National Health Regulations (‘the Regulations’) made provision in relation to applications by organizations to become registered medical benefits organizations or registered hospital benefits organizations under Part VI of the Act prior to its amendment by the Health Legislation Amendment Act 1983. Organizations are now required to conduct a health benefits fund and not a medical
benefits fund or a hospital benefits fund as previously, and can only be registered under Part VI of the Act as registered health benefits organizations. It is therefore necessary to make revised provision in the regulations for the purposes of sub-section 69(1) of the Act.
These statutory rules amend the regulations by repealing and substituting regulation 19 to reflect the amended provisions of the Act and impose revised requirements upon organizations seeking registration under Part VI of the Act. These revised requirements also take account of the fact that applications to become a registered health benefits organization normally would be made by organizations which have not previously conducted a health benefits fund. The requirements previously imposed by regulation 19 were designed primarily to accommodate applications from organizations which had already conducted a medical benefits fund or a hospital benefits fund under superseded health insurance arrangements.
Regulation 19 now requires an organization to furnish to the Secretary in the authorized form the following:
• a copy of the instrument constituting the organization;
• a copy of the articles or rules of the organization;
• a statement of the estimated assets and liabilities of the health benefits fund conducted by the organization at the commencement of its operations;
• a statement of the estimated income and expenditure of the fund during the first 12 months of its operation, and its estimated assets and liabilities at the end of that period;
• a statement showing the estimated number of contributors to the fund after 12 months of operation;
• a statement showing the ratio of the estimated management and administrative expenses to the estimated amount of contributions to the fund;
• a statement showing particulars of tables of benefits offered by the organization including levels of contributions and benefits; and
• a copy of any report to its members during the preceding 12 months by the organization if it carried on any business prior to the date of its application for registration.
Regulation 19 further provides that the person signing the application for registration shall certify in writing that copies and information furnished therewith are true and correct, and that the estimates furnished therewith are based on information that is true and correct.
The statutory rules came into operation on the date of notification in the Commonwealth of Australia Gazette.
Overview
The National Health Regulations (Amendment) Statutory Rules 1984 No. 322, enacted under the authority of the Minister for Health, amends the National Health Regulations to reflect changes introduced by the Health Legislation Amendment Act 1983. This amendment addresses the shift from organizations conducting medical or hospital benefits funds to conducting health benefits funds, necessitating updated regulatory requirements for registration as a registered health benefits organization under Part VI of the National Health Act 1953. The policy objective is to ensure that the regulations align with the new legislative framework, facilitating the registration of organizations that have not previously conducted a health benefits fund, and thereby maintaining the integrity and efficacy of the health benefits system in Australia. These statutory rules came into effect on the date of their notification in the Commonwealth of Australia Gazette.
Scope and Application
The National Health Regulations (Amendment) Statutory Rules 1984 No. 322 pertain to the amendment of the National Health Regulations, specifically concerning the process and documentation required for organisations seeking to become registered health benefits organisations under Part VI of the National Health Act 1953. These regulations apply to entities wishing to transition from conducting a medical or hospital benefits fund to a health benefits fund. The amended regulation 19 imposes detailed requirements on such organisations, including the submission of various documents and financial statements, such as the instrument constituting the organisation, articles or rules, estimated assets and liabilities, income and expenditure forecasts, contributor estimates, expense ratios, benefit tables, and any relevant prior business operation reports. The rules mandate that all submitted information be certified as true and correct, underscoring the importance of accuracy and transparency in the registration process. The amendments reflect the shift in the Act's focus from medical and hospital benefits funds to broader health benefits funds, necessitating updated regulatory requirements to accommodate new applicants. These statutory rules apply nationally and came into effect on the date of their notification in the Commonwealth of Australia Gazette.
Key Provisions
The National Health Regulations (Amendment) Statutory Rules 1984 No. 322 amend the National Health Regulations by repealing and substituting Regulation 19 ((19)). These changes reflect the amendments to the National Health Act 1953 brought about by the Health Legislation Amendment Act 1983, which now require organizations to conduct a health benefits fund instead of a medical benefits fund or a hospital benefits fund. The revised Regulation 19 imposes new requirements on organizations seeking registration under Part VI of the Act as registered health benefits organizations, taking into consideration that these applications will typically be made by organizations that have not previously conducted a health benefits fund. The requirements previously imposed by Regulation 19 were primarily designed for applications from organizations that had already conducted a medical benefits fund or a hospital benefits fund under previous health insurance arrangements.
Organizations seeking registration under Part VI of the Act must now furnish the Secretary with several documents and statements as part of their application. These include a copy of the instrument constituting the organization, a copy of the organization's articles or rules, a statement of the estimated assets and liabilities of the health benefits fund at the commencement of its operations, a statement of the estimated income and expenditure of the fund during the first 12 months of operation and its estimated assets and liabilities at the end of that period, a statement showing the estimated number of contributors to the fund after 12 months of operation, a statement showing the ratio of the estimated management and administrative expenses to the estimated amount of contributions to the fund, a statement showing particulars of tables of benefits offered by the organization including levels of contributions and benefits, and a copy of any report to its members during the preceding 12 months by the organization if it carried on any business prior to the date of its application for registration (Regulation 19(1)). The person signing the application for registration must also certify in writing that the copies and information furnished with the application are true and correct, and that the estimates provided are based on information that is true and correct (Regulation 19(2)).
The National Health Regulations (Amendment) Statutory Rules 1984 No. 322 impose certain obligations and requirements on organizations seeking registration as registered health benefits organizations. These include the obligation to provide the Secretary with a comprehensive set of documents and statements as part of their application, as well as the obligation to certify in writing that the information provided is true and correct and based on accurate estimates. The rules aim to ensure that organizations seeking registration as registered health benefits organizations under Part VI of the Act are adequately prepared to conduct a health benefits fund, and that they have provided accurate and comprehensive information to the Secretary to facilitate the registration process.
There are no specific offences, penalties, or civil/criminal consequences outlined in the National Health Regulations (Amendment) Statutory Rules 1984 No. 322 for breach of the requirements imposed by Regulation 19. However, it is important to note that providing false or misleading information in an application for registration as a registered health benefits organization may be considered a criminal offence under other relevant legislation, such as the Crimes Act 1914. In such cases, the maximum penalties may vary depending on the specific offence and the jurisdiction in which it is committed. It is therefore essential for organizations seeking registration as registered health benefits organizations to ensure that they comply with all relevant requirements and provide accurate and truthful information in their applications.