Commonwealth Numbered Acts Commonwealth Numbered Acts1 Subsection 4(1)
Insert:
(a) any document issued by an MDO to a person (whether or not the person is
already a member of the MDO) that contains a quote for the amount of
subscription that is or would be payable by that person for membership of the
MDO; and
(b) any document issued by a medical indemnity insurer to a person
(whether or not the medical indemnity insurer already provides medical
indemnity cover to the person) that contains a quote for the amount of
premium that is or would be payable by that person for provision of
such cover.
2 Subsection 4(1) (paragraph (b) of the definition
of late payment penalty )
Omit "or a lump sum payable under section 64".
3 Subsection 4(1) (at the end of the definition of late payment penalty )
Add:
; and (c) in relation to an amount that
a medical indemnity insurer or an MDO is required to remit to the HIC
under paragraph 66A(4)(b)—means a penalty payable under
section 66B.
4 Subsection 4(1)
Insert:
(a) is authorised under section 12 of the Insurance Act 1973 to carry on
insurance business in Australia; and
(b) in carrying on that business, enters into contracts of insurance
providing medical indemnity cover for other persons.
5 Subsection
50(3) (table item 7, column 3)
Omit "to 63", substitute "and 62".
6 Subsection 50(3) (table item 8)
Repeal the item.
7 Subsection 50(3) (table item 9, column 3)
Omit "section 65", substitute "sections 65 and 66B".
8 Subsection 50(3) (table item 10, column 3)
Omit "section 66", substitute "sections 66 and 66A".
9 Paragraph 52(2)(e)
Repeal the paragraph.
10 Subsection 60(2) (table item 1, column 3)
Omit "to 63", substitute "and 62".
11 Subsection 60(2) (table item 2)
Repeal the item.
12 Subsection 60(2) (table item 3, column 3)
Omit "section 65", substitute "sections 65 and 66B".
13 Subsection 60(2) (table item 4, column 3)
Omit "section 66", substitute "sections 66 and 66A".
14 Section 61
Omit "sections 62, 63 and 64", substitute "section 62".
15 Sections 63 and 64
Repeal the sections.
16 Paragraph 65(1)(a)
Repeal the paragraph, substitute:
(a) a person is liable to pay a
medical indemnity payment; and
17 Paragraph 65(1)(b)
Omit "or lump sum".
18 Paragraph 65(2)(b)
Omit "or lump sum".
19 Subparagraphs 65(2)(c)(i) and (ii)
Omit "or lump sum" (wherever occurring).
20 Subsection 66(1)
Repeal the subsection, substitute:
(a) if the payment is all or part of a payment of an amount specified in an
invoice, issued under section 66A by a medical indemnity insurer or an
MDO, as an amount of UMP support payment that is payable—to the medical
indemnity insurer or MDO; or
(b) in any other case—to the HIC.
21 Subsection 66(2)
Repeal the subsection.
22 Subsection 66(3)
After "section 65", insert "or 66B".
23 Subsection 66(4)
Omit ", (2)".
24 At the end of section 66
Add:
25 After section 66
Insert:
66A Collection of UMP support payments by medical indemnity insurers and MDOsWhen this section applies to a UMP support payment
(a) either:
(i) a medical indemnity insurer gives to the person an invoice stating the
premium that is or will be payable for medical indemnity cover
provided by a contract of insurance with the medical indemnity
insurer; or
(ii) subparagraph (i) does not apply, but an MDO gives to the person
an invoice stating the subscription that is or will be payable for
membership of the MDO; and
(b) before that invoice was given to the person, the HIC gave to the
medical indemnity insurer or MDO a notice under subsection (2);
and
(c) that invoice is the first invoice that the medical indemnity insurer
or MDO has given to the person, relating to the premium or
subscription, since the HIC gave the notice.
The medical indemnity insurer or MDO is the collection body for the UMP support payment.
HIC may give notice of liability to pay UMP support payment
(a) states that the person is liable to pay a UMP support payment for the
contribution year; and
(b) states the amount of UMP support payment that the person is liable to
pay; and
(c) states the basis on which the amount of UMP support payment was worked
out; and
(d) asks the collection body to include in its notice to the HIC under
paragraph (4)(c) other specified information, being information
that:
(i) the HIC believes on reasonable grounds the collection body is capable
of giving; and
(ii) the HIC believes on reasonable grounds that it requires for the
purpose of determining the amount that the collection body must remit
to the HIC under paragraph (4)(b); and
(e) states that this section applies to the collection of the payment.
(a) the person has already paid the UMP support payment to the HIC, or has
already been notified by the HIC of his or her liability to pay the UMP
support payment; or
(b) the person has notified the HIC in writing that he or she does not
wish this section to apply to the collection of UMP support payments
that he or she is liable to pay.
What the collection body for a UMP support payment must do
(a) in the next invoice that the collection body gives to the person for
payment of a premium for medical indemnity cover or for payment of a
membership subscription, include an amount for payment, to the collection
body, of the UMP support payment; and
(b) within the period referred to in subsection (5), remit to the HIC
any amount that the person pays to the collection body under paragraph
66(1)(a) in discharge of the person's liability to pay the UMP support
payment; and
(c) within that period, notify the HIC in writing:
(i) who made the payment; and
(ii) the amount of the payment; and
(iii) if the payment was made after the payment day for the UMP support
payment under section 61—the day on which the payment was
made; and
(d) include in the notice under paragraph (c) any other information
that the HIC has, in its notice to the collection body under
subsection (2), asked the collection body to include.
(a) if the amount is paid on or before the payment day for the UMP support
payment under section 61—on that payment day; or
(b) if the amount is paid after that payment day—7 days after the day
on which the amount is paid.
Effect of payment to collection body
Collection body entitled to interest etc.
(a) may, prior to remitting the amount to the HIC under paragraph (4)(b)
of this section, invest the amount on deposit with an ADI; and
(b) is entitled to any interest payable on the amount so deposited.
66B Late payment penalty for medical indemnity insurers and MDOs
(a) a medical indemnity insurer or an MDO (the collection body ) is liable
under paragraph 66A(4)(b) to remit an amount to the HIC; and
(b) all or part of the amount has not been remitted to the HIC within the
period referred to in subsection 66A(5);
the collection body is liable to pay a late payment penalty under this section.
(a) at the prescribed rate; and
(b) on the unpaid amount of the amount to be remitted; and
(c) for the period:
(i) starting when the amount becomes due and payable; and
(ii) ending when the amount, and the penalty payable under this section in
relation to the amount, have been paid in full.
26 After paragraph 67(1)(b)
Insert:
or (c) a late payment penalty in
relation to an amount that a medical indemnity insurer or an MDO is required
to remit to the HIC under paragraph 66A(4)(b);
27 Subsection 67(1)
Omit "or the person makes an election under subsection (2)".
28 Subsections 67(2) and (3)
Repeal the subsections.
29 Subsection 68(2)
Repeal the subsection, substitute:
30 Subsection 68(3)
After "section 65", insert "or 66B".
31 Subparagraph 70(1)(a)(ii)
Repeal the subparagraph.
32 Subparagraph 70(1)(a)(iii)
Omit "and", substitute "or".
33 After subparagraph 70(1)(a)(iii)
Insert:
(iv) a late payment penalty in relation to an amount
that a medical indemnity insurer or an MDO is required to remit to the HIC
under paragraph 66A(4)(b); and
34 After paragraph 71(1)(b)
Insert:
or (c)
whether a person has medical indemnity cover provided by a contract of
insurance with a particular medical indemnity insurer; or
(d) whether a person is a member of a particular MDO;
35 After
section 74
Insert:
74A Failing to comply with requirements for collecting UMP support payments
Penalty: 30 penalty units.