Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2016-2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
MEDICARE GUARANTEE BILL 2017
MEDICARE GUARANTEE (CONSEQUENTIAL AMENDMENTS) BILL 2017
EXPLANATORY MEMORANDUM
(Circulated by authority of the
Treasurer, the Hon Scott Morrison MP)
Table of contents
Glossary ................................................................................................. 1
General outline and financial impact....................................................... 3
Chapter 1 Medicare Guarantee Fund ............................................ 5
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
CRF consolidated revenue fund
Health Special Account Medicare Guarantee Fund (Health) Special
Account
MBS Medicare Benefits Schedule
PBS Pharmaceutical Benefits Scheme
Treasury Special Account Medicare Guarantee Fund (Treasury) Special
Account
1
General outline and financial impact
Medicare Guarantee Fund
The Medicare Guarantee Bill 2017 establishes the Medicare Guarantee
Fund to secure the ongoing funding of the Medicare Benefits Schedule
(MBS) and the Pharmaceutical Benefits Schedule (PBS). The Medicare
Guarantee Fund consists of the Medicare Guarantee Fund (Treasury)
Special Account (the Treasury Special Account) and the Medicare
Guarantee Fund (Health) Special Account (the Health Special Account).
To ensure funding is always available to meet these obligations the
Treasurer must annually credit the Treasury Special Account with an
amount equal to the estimated costs of the MBS and PBS for the next
financial year with revenue raised from the Medicare levy (less amounts
to fund the National Disability Insurance Scheme) as well as a portion of
personal income tax receipts. This amount is then transferred to the Health
Special Account for the sole purpose of funding the MBS and PBS. The
Treasurer must also credit further amounts to the Treasury Special
Account if needed at any time in the financial year to cover estimated
MBS and PBS payments.
The Medicare Guarantee (Consequential Amendments) Bill 2017 makes
amendments to other Commonwealth legislation to reflect the proposed
operation of the Medicare Guarantee Bill 2017.
Date of effect: The Medicare Guarantee Fund is established from the day
after Royal Assent. Payments from the Fund commence after an amount is
first required to be credited to the Health Special Account.
Proposal announced: The measure was announced on 9 May 2017 in the
2017-18 Budget.
Financial impact: Nil.
Human rights implications: These Bills do not raise any human rights
issues. See the Statements of Compatibility with Human Rights --
paragraphs 1.66 to 1.75.
Compliance cost impact: Nil.
3
Chapter 1
Medicare Guarantee Fund
Outline of chapter
1.1 The Medicare Guarantee Bill 2017 establishes the Medicare
Guarantee Fund to secure the ongoing funding of the Medicare Benefits
Schedule (MBS) and the Pharmaceutical Benefits Schedule (PBS). The
Medicare Guarantee Fund consists of the Medicare Guarantee Fund
(Treasury) Special Account (the Treasury Special Account) and the
Medicare Guarantee Fund (Health) Special Account (the Health Special
Account).
1.2 To ensure funding is always available to meet these obligations
the Treasurer must annually credit the Treasury Special Account with an
amount equal to the estimated costs of the MBS and PBS for the next
financial year with revenue raised from the Medicare levy (less amounts
to fund the National Disability Insurance Scheme) as well as a portion of
personal income tax receipts. This amount is then transferred to the Health
Special Account for the sole purpose of funding the MBS and PBS. The
Treasurer must also credit further amounts to the Treasury Special
Account if needed at any time in the financial year to cover estimated
MBS and PBS payments.
1.3 The Medicare Guarantee (Consequential Amendments)
Bill 2017 makes amendments to other Commonwealth legislation to
reflect the proposed operation of the Medicare Guarantee Bill 2017.
Context of amendments
Framework for special accounts and ordinary and special appropriations
1.4 All Commonwealth expenditure is ultimately subject to the
requirements of the Australian Constitution. Among other things, the
Constitution requires that a consolidated revenue fund (CRF) be formed
from all revenues or monies raised or received by the Executive
Government of the Commonwealth.
1.5 Sections 81 and 83 of the Constitution provide that there must
be an appropriation, made by law, for the purposes of the Commonwealth,
5
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
before money can be drawn down from the CRF. This safeguards
Parliament's control over government funding.
1.6 The two main types of appropriations to authorise the spending
of money from the CRF are annual and special appropriations. Annual
appropriations, contained in annual Appropriation Acts passed by
Parliament, provide annual funding for the ordinary services of
government. Annual appropriations are typically split into two Bills, the
first that appropriates money to fund the ordinary annual services of the
government and the second that appropriates money to fund things outside
the ordinary annual services, such as new activities and major capital
works.
1.7 A special (standing) appropriation is a provision in an Act of
Parliament that provides authority to spend money for particular purposes.
Once a Bill with a special appropriation clause has been passed by
Parliament and receives Royal Assent, ongoing authority exists for the
continued expenditure of these funds for the specified purposes.
1.8 Division 3 of Part 2-5 of the Public Governance, Performance
and Accountability Act 2013 deals with special accounts within the CRF.
Broadly, a special account is an amount notionally set aside within the
CRF for particular purposes.
1.9 Section 80 of the Public Governance, Performance and
Accountability Act 2013 sets out when funds held in a special account may
be withdrawn from the CRF. Specifically it provides that:
• if an Act establishes a special account and identifies the
purposes of the special account, then the CRF is appropriated
for expenditure for those purposes, up to the balance of the
special account (i.e. a special appropriation supporting
payments for the purposes of special accounts); and
• the crediting of an amount to, or debiting of an amount from,
a special account takes effect at the time an entry connected
with the crediting or debiting is made in the accounts of the
affected Commonwealth entity.
MBS benefits and PBS benefits
1.10 Prior to these amendments, Medicare benefits (often referred to
as benefits under the MBS or MBS benefits) and PBS benefits were paid
under the Health Insurance Act 1973 and National Health Act 1953
respectively.
6
Medicare Guarantee Fund
1.11 Under these Acts payment obligations under those schemes were
appropriated from the CRF.
1.12 Section 125 of the Health Insurance Act 1973 provided for a
special appropriation covering amounts paid under the MBS, including
special arrangements for optometrists supplying services to persons in
isolated areas (see Part II and section 129A of the Health Insurance
Act 1973).
1.13 Section 46AC of the Health Insurance Act 1973 provided a
separate appropriation for payments related to the former Health and
Hospitals Fund established under the now repealed part of the
Nation-building Funds Act 2008.
1.14 Similarly, section 137 of the National Health Act 1953 included
a special appropriation under which payments made under the PBS were
appropriated from the CRF.
1.15 However, this was subject to a qualification. Subsection 137(2)
of the National Health Act 1953 provides that expenditure of a capital
nature and expenditure on administrative expenses incurred by or on
behalf of the Commonwealth for the purposes of this Act, with the
exception of expenditure incurred under section 9A or paragraph 9C(2)(a)
of that Act, were to be paid out of moneys from time to time appropriated
by the Parliament under annual appropriation Bills. This ensures that there
is regular Parliamentary scrutiny of capital and administrative expenses.
1.16 Capital expenditure is incurred under section 9A or
paragraph 9C(2)(a) of the National Health Act 1953 and therefore is
covered by the special appropriation despite being capital in nature if the
expenditure related to arrangements made by the Commonwealth for:
• the supply of medical or surgical aids, equipment or
appliances to patients; or
• the modification of buildings, vehicles or equipment to treat
or rehabilitate patients.
Summary of new law
1.17 The Medicare Guarantee Bill 2017 establishes the Medicare
Guarantee Fund consisting of the Treasury Special Account and the
Health Special Account (which are special accounts for the purposes of
the Public Governance, Performance and Accountability Act 2013).
7
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
1.18 It provides that:
• payments of Medicare benefits and payments under the PBS
are debited to and paid from the Health Special Account;
• the Treasurer must, by notifiable instrument, annually credit
the Treasury Special Account with an amount equal to the
estimated cost of paying Medicare benefits and PBS benefits
over the next financial year;
• amounts credited to the Treasury Special Account are
transferred as soon as practical to the Health Special
Account;
• the Treasurer must ensure that at all times during a financial
year that the Medicare Guarantee Fund has sufficient funds
to meet its expected liabilities for that financial year, and
must credit additional amounts to the Treasury Special
Account if any shortfall is estimated to arise; and
• excess amounts in the Medicare Guarantee Fund can be
returned to the CRF.
1.19 The Medicare Guarantee (Consequential Amendments)
Bill 2017 makes amendments to other Commonwealth legislation to
reflect the operation of the Medicare Guarantee Bill 2017.
Detailed explanation of new law
Establishing the Medicare Guarantee Fund
1.20 The Medicare Guarantee Bill 2017 establishes the Medicare
Guarantee Fund, consisting of two special accounts, the Treasury Special
Account and the Health Special Account. [Definitions of 'Medicare Guarantee
Fund (Treasury) Special Account' and 'Medicare Guarantee Fund (Health) Special
Account' in clause 4, clause 5, subclauses 6(1) and (2) and 12(1) and (2) of the
Medicare Guarantee Bill 2017]
1.21 A special account is a mechanism for the purposes of the Public
Governance, Performance and Accountability Act 2013 that sets aside an
amount within the Commonwealth's CRF so that it can only be used for
specific purposes.
1.22 The objective of the Government in establishing the Medicare
Guarantee Fund is to secure the ongoing funding of the MBS and PBS.
8
Medicare Guarantee Fund
1.23 Broadly, the Treasurer must credit an amount equal to the
estimate of the annual MBS and PBS expenditure to the Treasury Special
Account each financial year. The Treasurer must ensure that as soon as
possible the credit is transferred to the Health Special Account to be
available to be drawn on as required to meet its purpose of making
Medicare benefit payments and PBS payments.
1.24 The establishment of the two special accounts as part of the
Medicare Guarantee Fund (the Treasury Special Account and the Health
Special Account) rather than a single special account is required to ensure
that the new Medicare Guarantee arrangements do not affect existing
expenditure reporting requirements for MBS and PBS payments
undertaken by the Health portfolio.
Treasury Special Account
Purpose of the Treasury Special Account
1.25 The Medicare Guarantee Bill 2017 provides that the purpose of
the Treasury Special Account is solely to ensure that funds are available
for transfer to the Health Special Account to meet Medicare benefit and
PBS payment obligations. This ensures that the Medicare Guarantee Fund
safeguards Medicare benefit payments and PBS payments by providing
that funds are always available to meet liabilities under the MBS and the
PBS. [Clause 11 of the Medicare Guarantee Bill 2017]
Crediting the Treasury Special Account
Crediting provisions
1.26 To achieve this purpose, the Medicare Guarantee Bill 2017
allows the Treasurer to credit an amount to the Treasury Special Account
for a specified budget year by making a determination. [Subclauses 7(1) and
7(4) of the Medicare Guarantee Bill 2017]
1.27 Once the determination is made, the specified amount must
generally be credited to the Treasury Special Account in accordance with
the timing specified in the determination. However, the amount cannot be
credited before the later of the day the determination commences and
1 July 2017. [Subclauses 7(2) and (3) of the Medicare Guarantee Bill 2017]
1.28 The determination by the Treasurer is a notifiable instrument.
The determination is not legislative in character - it specifies an amount
according to fixed rules. However, making it a notifiable instrument
ensures that there is appropriate scrutiny of the making of the
determination by having a permanent public record of the decision on the
9
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
Federal Register of Legislation. [Subclause 7(1) of the Medicare Guarantee
Bill 2017]
Circumstances when the Treasurer must credit an amount
1.29 The Treasurer may make a determination to credit an amount at
any time. However, there are two situations in which the Treasurer must
credit an amount.
1.30 First, the Treasurer must credit an amount to the Treasury
Special Account as soon as is practical after:
• the release of the Commonwealth Budget for that financial
year (the budget year); or
• for the first year of the operation of the Medicare Guarantee
Fund, as soon as possible after the Medicare Guarantee
Bill 2017 commences.
[Definition of 'budget year' in clause 4 and clauses 8 and 9 of the Medicare Guarantee
Bill 2017]
1.31 The Treasurer must annually credit the amount the Treasurer
considers to be sufficient to cover the estimated total liabilities of the
Health Special Account for that financial year (i.e. the total of all expected
payments for the purposes of Part VII of the National Health Act 1953
and all amounts payable under Part II or under an arrangement in force
under section 129A of the Health Insurance Act 1973). [Subclauses 8(2) and
9(2) and (3) of the Medicare Guarantee Bill 2017]
1.32 Transitional arrangements apply for the 2017-18 budget year as
the Medicare Guarantee Fund may not have been established and an
amount credited until after 1 July 2017. The amount credited for the
2017-18 budget year must be the estimate of expenditure for Medicare
benefits and PBS payments from the day in the budget year in which the
amount is credited until the end of the 2017-18 budget year. [Subclause 8(2)
of the Medicare Guarantee Bill 2017]
1.33 This obligation ensures the full amount of funding expected to
be required for Medicare benefit payments and PBS payments is, in effect,
drawn from the proceeds of the Medicare levy (less the contribution for
the National Disability Insurance Scheme) as well as a portion of personal
income tax receipts and allocated to the Medicare Guarantee Fund to
support those programs for the following financial year.
1.34 Secondly, the Treasurer must also credit an amount if at any
time in a financial year the Treasurer considers that the amount held in the
Medicare Guarantee Fund may not be sufficient to permit the payment of
10
Medicare Guarantee Fund
all amounts required for the remainder of that financial year for the
purposes of payments under:
• Part VII of the National Health Act 1953; and
• Part II or under an arrangement in force under section 129A
of the Health Insurance Act 1973.
[Subclauses 10(1) and (2) of the Medicare Guarantee Bill 2017]
1.35 In this case, the amount that the Treasurer must credit is the
amount of the estimated shortfall in funding for that financial year.
[Subclause 10(3) of the Medicare Guarantee Bill 2017]
Adjustments to address over-estimates and under-estimates
1.36 While the Treasurer must ensure that the Medicare Guarantee
Fund is credited with an amount equal to its estimated liabilities for each
budget year, this estimate may either exceed actual expenditure or be less
than actual expenditure.
1.37 The estimate of liabilities is also updated at each budget update,
in line with forecasts of MBS and PBS expenditure over the forward
estimates period.
1.38 The Treasurer may address any potential under-estimate in the
amount credited or a later increase in estimated expenditure identified in a
budget update by crediting additional amounts by determination. To the
extent that the under-estimate or increase in estimated expenditure means
that the Treasurer considers the amount held in the Medicare Guarantee
Fund is insufficient to meet expected expenditure for that budget year, the
Treasurer is required to credit an additional amount for that budget year to
make up the shortfall. This ensures that the Medicare Guarantee Fund
meets it objective of guaranteeing payment of MBS and PBS obligations.
The additional amount must be credited for the financial year to which the
shortfall relates. [Clause 10 of the Medicare Guarantee Bill 2017]
Health Special Account
Purpose of the Health Special Account
1.39 Consistent with the objective of the Medicare Guarantee Fund,
the Medicare Guarantee Bill 2017 provides that the purpose of the Health
Special Account is to meet the cost of Medicare benefit payments and
PBS payments. [Clause 13 of the Medicare Guarantee Bill 2017]
11
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
1.40 A Medicare benefit payment is a payment under Part II or under
an arrangement in force under section 129A of the Health Insurance
Act 1973. A PBS payment is a payment for the purposes of Part VII of the
National Health Act 1953. [The definitions of 'Medicare benefit payment' and
'PBS payment' in clause 4 of the Medicare Guarantee Bill 2017]
1.41 As a result, payments relating to Medicare benefits and
pharmaceutical benefits under the PBS previously supported by special
appropriations in the National Health Act 1953 and the Health Insurance
Act 1973 are instead paid from the Health Special Account.
1.42 As these payments are made for the purposes of a special
account the payments are supported by the special appropriation for
payments for the purposes of special accounts up to the amount credited to
the fund under section 80 of the Public Governance, Performance and
Accountability Act 2013.
1.43 The debiting and payment of these amounts is automatic - there
is no need for Ministerial consideration of each payment and no delay to
the provision of benefits.
1.44 The amendments do not affect the treatment of related payments
that continue to be authorised by annual Parliamentary appropriations or
existing special appropriations. This includes payments to which
subsection 137(2) of the National Health Act 1953 applies (which
continue to be dealt with through annual appropriations) and payments
under other Parts of the National Health Act 1953 (which are not within
the scope of PBS payments and so continue to be covered by the special
appropriation).
Overestimates of liabilities
1.45 If the liabilities of the Health Special Account are overestimated
and the Health Minister considers there will be a surplus in the fund at the
end of a financial year, the Health Minister may direct, by notifiable
instrument, that an amount should be debited from the Health Special
Account and returned to the general CRF. The removal of funds from the
Health Special Account to the general CRF is subject to disclosure by
notifiable instrument to ensure that there is appropriate public scrutiny of
such withdrawals. No amount can be debited retrospectively or before the
Health Special Account has first been credited. [Subclauses 15(1) and (2) of the
Medicare Guarantee Bill 2017]
1.46 For the purpose of this provision, the Health Minister is defined
as the Minister that administers Part II of the Health Insurance Act 1973.
[Definition of 'Health Minister' in clause 4 of the Medicare Guarantee Bill 2017]
12
Medicare Guarantee Fund
1.47 The amount that may be withdrawn using this power cannot
exceed the amount of the estimated surplus. This provides an important
safeguard to ensure that the amount in the Health Special Account cannot
be reduced below the estimated amount required to meet payments each
financial year. In addition, an amount credited during a financial year to
meet estimated expenditure for the following financial year cannot be
treated as a surplus amount for the financial year in which the credit is
made. This safeguards the Health Special Account to ensure that it has
sufficient funds to meet expected liabilities. [Subclause 15(3) of the Medicare
Guarantee Bill 2017]
1.48 An amount credited to the Treasury Special Account that is then
transferred to the Health Special Account is treated as being credited to
the Health Special Account for the same budget year as the credit was
made to the Treasury Special Account. This ensures that the transfer
between special accounts does not result in a loss of connection with the
relevant budget year when transferred to the Health Special Account.
[Subclause 15(4) of the Medicare Guarantee Bill 2017]
Transfers from the Treasury Special Account to the Health Special
Account
1.49 The Medicare Guarantee Bill 2017 does not provide for amounts
to be directly credited from the CRF to the Health Special Account.
Instead, funds to meet the liabilities of the Health Special Account are
transferred to it from the Treasury Special Account. The Treasurer is
required to debit the Treasury Special Account and make a corresponding
credit to the Health Special Account as soon as practical after any amount
is credited to the Treasury Special Account to ensure that the funds are
made available on a timely basis to support MBS and PBS expenditure.
[Subclause 14(1) of the Medicare Guarantee Bill 2017]
1.50 The Medicare Guarantee Bill 2017 specifies that directions
relating to transfers are not legislative instruments. This clarification is
included solely for the benefit of the reader. The document is not a
legislative instrument within the meaning of subsection 8(1) of the
Legislation Act 2003 as it is purely administrative in character.
[Subclause 14(2) of the Medicare Guarantee Bill 2017]
1.51 Unlike the initial crediting of amounts and subsequent
withdrawals, the instrument transferring amounts between funds is not a
notifiable instrument. This is because transfers within the Medicare
Guarantee Fund are an administrative process that does not affect the total
amount available in the Fund and accordingly a public record is not
required.
13
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
Appropriation
1.52 If at any time, the balance of the Health Special Account was
insufficient to meet a MBS or PBS payment then the CRF is appropriated
for the purposes of making the payment. This ensures that in the unlikely
event of an error or delay in crediting amounts to the Health Special
Account, MBS and PBS liabilities will always be met. [Clause 18 of the
Medicare Guarantee Bill 2017]
Administration of the Medicare Guarantee Fund
1.53 The administration of the Medicare Guarantee Fund is split
between the Treasury and Health portfolios.
1.54 The Secretary of the Treasury Department is responsible for the
administration of the Treasury Special Account. [Subclause 6(3) of the
Medicare Guarantee Bill 2017]
1.55 The Secretary of the Health Department is responsible for the
administration of the Health Special Account. [Subclause 12(3) of the Medicare
Guarantee Bill 2017]
1.56 The Treasurer and Health Minister may delegate any of their
functions under the Medicare Guarantee Bill 2017 to senior officials in
their respective departments. Any exercise of functions delegated in this
way must be consistent with the directions of the relevant Minister.
[Clauses 16 and 17 of the Medicare Guarantee Bill 2017]
1.57 Amendments have been made to the operation of the secrecy
provisions under the National Health Act 1953 and the Health Insurance
Act 1973 to permit information covered by these provisions to be shared
for the purposes of the performance of duties or the exercise of powers or
functions under the provisions of the Medicare Guarantee Bill 2017.
[Schedule 1 to the Medicare Guarantee (Consequential Amendments) Bill 2017, items 2
and 3, subsection 130(1) of the Health Insurance Act 1973 and subsection 135A(1) of
the National Health Act 1953]
1.58 These amendments adapt the existing provisions to the revised
legislative framework for payments as a result of establishing the
Medicare Guarantee Fund - they do not involve any substantive change to
the existing provisions. The amendments allow the continuation of the
existing administration of MBS and PBS payments by Commonwealth
agencies.
14
Medicare Guarantee Fund
Minor and consequential amendments
1.59 The Medicare Guarantee Bill 2017 defines a number of terms
that are used in its operative provisions. It also includes an outline to assist
readers in understanding the Act. Consistent with other outlines in
Commonwealth legislation, this outline is a simplified and non-operative
explanation of the law. [Clauses 3 and 4 of the Medicare Guarantee Bill 2017]
1.60 The Medicare Guarantee (Consequential Amendments)
Bill 2017 also makes a number of consequential amendments to the
National Health Act 1953 and the Health Insurance Act 1973 to replace
the current special appropriations under those Acts for Medicare benefit
payments and PBS payments with the payment mechanism in the Health
Special Account. [Schedule 1 to the Medicare Guarantee (Consequential
Amendments) Bill 2017, items 1, 4 and 5, section 125 of the Health Insurance Act 1973
and subsection 137(1) of the National Health Act 1953]
Application and commencement provisions
Commencement
1.61 The Medicare Guarantee Bill 2017 commences on the day after
it receives Royal Assent. [Clause 2 of the Medicare Guarantee Bill 2017]
1.62 The amendments made by the Medicare Guarantee Fund
(Consequential Amendments) Bill 2017 commence on the day the first
amount is credited to the Health Special Account. [Clause 2 of the Medicare
Guarantee (Consequential Amendments) Bill 2017]
Application
1.63 While the Medicare Guarantee Fund comes into existence from
the day after the Medicare Guarantee Bill 2017 receives Royal Assent, no
amounts can be credited to the Treasury Special Account until
1 July 2017. Similarly, no amount can be transferred to or paid from the
Health Special Account before this first amount is credited. [Subclause 7(3),
paragraph 8(1)(b), clause 13, subclause 14(1) and clauses 15 and 18 of the Medicare
Guarantee Bill 2017]
1.64 The consequential amendments to the National Health Act 1953
and the Health Insurance Act 1973 apply to payments made after the
amendments commence. [Schedule 1 to the Medicare Guarantee (Consequential
Amendments) Bill 2017, item 9]
15
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
1.65 This means that until the Treasury and Health Special Accounts
have come into existence and the Medicare Guarantee Fund has received
its first credit, Medicare benefit payments and PBS payments continue to
be supported by the special appropriations under the Health Insurance
Act 1973 and the National Health Act 1953. This ensures continuity of
funding for MBS and PBS payments both before and after the Health
Special Account is established.
16
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Medicare Guarantee Bill 2017
1.66 This Bill 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
1.67 The Bill establishes the Medicare Guarantee Fund, consisting of
the Medicare Guarantee Fund (Treasury) Special Account (Treasury
Special Account) and the Medicare Guarantee Fund (Health) Special
Account (Health Special Account).
1.68 The Bill provides that:
• from the later of 1 July 2017 and the date of commencement
of a crediting determination made under the Bill, MBS and
PBS payments are automatically debited to and paid from the
Health Special Account; and
• the Treasurer must, by notifiable instrument, annually credit
the Treasury Special Account with an amount equal to its
estimated liabilities for that financial year and transfer that
amount to the Health Special Account.
1.69 The Bill also establishes mechanisms to address over and under
estimates, including provisions to top-up the Health Special Account so a
shortfall in the estimate of liabilities does not affect payments.
Human rights implications
1.70 This Bill does not engage any of the applicable rights or
freedoms.
17
Medicare Guarantee Bill 2017; Medicare Guarantee (Consequential Amendments) Bill 2017
Conclusion
1.71 This Bill is compatible with human rights as it does not raise any
human rights issues.
Medicare Guarantee (Consequential Amendments) Bill 2017
1.72 This Bill 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
1.73 The Bill makes consequential amendments to the Health
Insurance Act 1973 and the National Health Act 1953 to reflect the
establishment of the Medicare Guarantee Fund (Treasury) Special
Account and the Medicare Guarantee Fund (Health) Special Account.
Human rights implications
1.74 This Bill does not engage any of the applicable rights or
freedoms.
Conclusion
1.75 This Bill is compatible with human rights as it does not raise any
human rights issues.
18
19