EXPLANATORY STATEMENT
Health and Other Services (Compensation) Act 1995
Provision of Information (Bulk Payment Agreements) Determination 2017
The Health and Other Services (Compensation) Act 1995 (“the Act”) establishes a scheme for the recovery of medicare benefits and nursing home, residential care and home 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 Medicare (the CEM) to enter into a bulk payment agreement (BPA) on behalf of the Commonwealth with a compensation payer or insurer who is, 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 obligations of compensation payers or insurers and compensable persons under the Act.
Entering into a BPA is entirely voluntary and designed to streamline and 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 with whom the BPA is made to give the CEM information of a kind, and in a way, specified in a determination made by the CEM under subsection 34(2) of the Act. Subsection 34(3) of the Act provides that the determination may require the giving of information about settlements, judgments and reimbursement arrangements that occur within the period in which the BPA applies.
The new determination (Provision of Information (Bulk Payment Agreements) Determination 2017) specifies the information about judgments, settlements and reimbursement arrangements to be provided to the CEM 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 must be provided. The information must be given to the CEM in writing and sent by the post or electronic communication.
The Provision of Information (Bulk Payment Agreement) Determination 2017 continues the requirements of the Provision of Information (Bulk Payment Agreement) Determination 2006 which sunsetted on 1 October 2016 under section 50 of the Legislation Act 2003. The kinds of information specified in this Determination is required by the Department of Human Services to enable it to administer the Act and is consistent with the information which is normally obtained in compensation cases where a BPA is not in place. This Determination ensures that the requirement to provide this information is included in a BPA.
The commencement date for the Determination is the day after it is registered.
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. This Determination is therefore a legislative instrument for the purposes of the Legislation Act 2003 (subsection 8(5) of the Legislation Act 2003 refers).
No consultation was undertaken under section 17 of the Legislative Instruments Act 2003 before the Provision of Information (Bulk Payment Agreement) Determination 2017 was made as the Determination is of a minor or machinery nature and does not substantially alter existing arrangements.
The Act specifies no conditions that must be satisfied before the power to make this Determination is exercised.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Disallowable Legislative Instrument
The Health and Other Services (Compensation) Act 1995 (“the Act”) establishes a scheme for the recovery of medicare benefits and nursing home, residential care and home 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 Medicare (the CEM) to enter into a bulk payment agreement (BPA) on behalf of the Commonwealth with a compensation payer or insurer who is, 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 obligations of compensation payers or insurers and compensable persons under the Act.
Entering into a BPA is entirely voluntary and designed to streamline and 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 with whom a BPA is made to give the CEM information of a kind, and in a way, specified in a determination made by the CEM under subsection 34(2) of the Act. Subsection 34(3) of the Act provides that the determination may require the giving of information about settlements, judgments and reimbursement arrangements that occur within the period in which the BPA applies.
The purpose of the Determination is to specify the kinds of information that must be provided under BPA and the way in which the information is to be provided. This information is required by the Department of Human Services to enable it to administer the Act. This Determination ensures that the requirement to provide this information is included in a BPA.
Human Rights Implications
This Determination does not engage any of the applicable rights or freedoms.
Conclusion
This Determination is compatible with human rights as it does not raise any human rights issues.
Caroline Edwards
Chief Executive Medicare