EXPLANATORY STATEMENT
Health and Other Services (Compensation) Act 1995
Provision of Information (Bulk Payment Agreements) Determination 2006
The Health and Other Services (Compensation) Act 1995 (“the Act”) establishes a scheme for the recovery of Medicare benefits and nursing home benefits/residential care subsidies paid in respect of an injury for which compensation becomes payable under a judgment, settlement or reimbursement arrangement. Under the Act, the compensation payer or insurer is prohibited from paying the compensable person any part of the compensation until specified requirements of the Act are met.
Subsection 34(1) of the Act allows the Chief Executive Officer of Medicare Australia (the CEO) to enter into bulk payment agreements (BPA) on behalf of the Commonwealth with persons who are, or may become, liable to make payments to the Commonwealth under the Act.
The effect of entry into a BPA is to exempt the person with whom the BPA is made, and any compensable person concerned, from some of the obligations under the Act. The BPA becomes the primary mechanism for regulating and administering the person’s obligations under the Act.
Entering into a BPA is entirely voluntary and designed to facilitate compliance with the Act in cases where there are large numbers of claims.
Subsection 34(1) of the Act requires that a BPA contain certain provisions. Those provisions include an obligation for the person to give the CEO information of a kind, and in a way, specified in a determination made by the CEO under subsection 34(2) of the Act. Subsection 34(3) of the Act provides that the determination may require the giving of detailed information about settlements, judgments and reimbursement arrangements that occur within the period in which the BPA applies.
Subsection 34(4) of the Act provides that determinations under subsection 34(2) are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901 and hence are legislative instruments (paragraph 6(d) of the Legislative Instruments Act 2003 (the Legislative Instruments Act) refers).
The new determination (Provision of Information (Bulk Payment Agreements) Determination 2006) specifies the information about judgments, settlements and reimbursement arrangements to be provided to the CEO under a BPA, specifically:
- the date of the judgment, settlement or reimbursement arrangement;
- the full names and addresses, dates of birth and Medicare numbers (if known) of all the compensable persons to whom the judgment, settlement or reimbursement arrangement relates;
- the amount of compensation to be paid under the judgment or settlement;
- a description of the injury;
- the date of injury; and
- a copy of the relevant order or agreement.
The determination also specifies the ways in which this information may be provided. The information must be given to the CEO in writing (certified copies of documents where indicated) and sent via the post or by facsimile.
The information that must be given to the CEO is similar to that which is normally obtained in compensation cases where a BPA is not in place.
The Provision of Information (Bulk Payment Agreement) Determination 2006 also revokes the previous determination. Part of the rationale for the making of a new determination is to reflect the changed arrangements associated with the transition of the Health Insurance Commission to Medicare Australia.
The commencement date for the Determination is the day after it is registered.
No consultation was undertaken under section 17 of the Legislative Instruments Act before the Provision of Information (Bulk Payment Agreement) Determination 2006 was made as it is of a minor or machinery nature and does not substantially alter existing arrangements.