Commonwealth Numbered Regulations - Explanatory Statements

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HEALTH INSURANCE COMMISSION REGULATIONS (AMENDMENT) 1998 NO. 124

STATUTORY RULES 1998 NO. 124

Issued by the Authority of the Minister for Health and Family Services

Health Insurance Commission Act 1973

Health Insurance Commission Regulations (Amendment)

The Health Insurance Commission (HIC) administers two general practice incentive schemes on behalf of the Department of Health and Family Services (the Department). Those functions were previously conferred on the HIC under the Health Insurance Commission Regulations:

*       Regulation 3 P empowered the HIC to administer the Better Practice Program (BPP), a

       voluntary program designed to provide financial recognition for general practices

       meeting certain eligibility criteria;

*       Schedule 2A detailed the formula used to calculate BPP payments- and

       Regulation 3Q empowered the HIC to administer the General Practice Immunisation

       Incentives (GPII) scheme, which was announced as part of the Government's

       Immunise Australia Seven Point Plan.

The Department is now moving to a new way of doing business with the HIC, for both new and existing functions, which provides a more flexible mechanism for outlining roles and obligations and sets appropriate performance indicators. Recent amendments to the Health Insurance Commission Act 1973 now enable the HIC to enter into service delivery arrangements with the Secretary of the Department for the provision of Commonwealth services. Prior to these amendments functions could only be conferred on the HIC by legislation.

It is timely for the HIC and the Department to move to service delivery arrangements for both the BPP and the GPII as both programs undergo significant changes from 1 July 1998:

*       in response to recommendations made by the General Practice Strategy Review

       Group. which reported to the Government in March, the BPP will be replaced by a

       new practice payments system. Transitional arrangements will apply for practices

       currently participating in the BPP; and

*       the HIC will commence making incentive payments, which aim to increase childhood

       immunisation coverage rates, under the GPII scheme.

In order to move to these new service delivery arrangements, it has been necessary to repeal existing Regulations 3Q and 3P, and Schedule 2A to remove the legislative basis for the BPP and GPII functions.

Details of the Regulations are set out in the Attachment.

The Regulations commenced on 10 June 1998, except Regulation 4 which commenced on 15 June 1998.

ATTACHMENT

Details of Amendments to the Health Insurance Commission Regulations

The purpose of the amendments to the Health Insurance Commission Regulations is to delete Regulations 3 Q and 3 P, and Schedule 2A to allow a move to service delivery arrangements for the Better Practice Program and the General Practice Immunisation Incentives scheme. The repeal removes the basis of these programs from the regulations so that the function of administering the programs can be conferred on the HIC under service delivery arrangements.

Specifically:

*       subregulation 1.1 - provides for the commencement date of Regulation 4 to be 15

       June 1998.

*       subregulation 1.2 - provides for the commencement date of the remainder of the

       Regulations to be 10 June 1998.

       subregulation 2 - specifies that the Health Insurance Commission Regulations have

       been amended as set out in subregulation 3.1, 4.1 and 5.1.

*       subregulation 3 - omits Regulation 3P.

*       subregulation 4 - omits Regulation 3Q.

*       subregulation 5 - omits Schedule 2A.