Commonwealth Consolidated Acts

HEALTH INSURANCE ACT 1973 - SECT 124ZQ

Consequences for all participants

  (1)   Subject to subsection   (6), if a person withdraws from the Bonded Medical Program after the person's census date for the second year of the person's course of study in medicine at an Australian university, the person must pay:

  (a)   if the person was a bonded participant covered by subsection   124ZE(1) or (2)--both:

  (i)   100% of the cost of the person's course of study in medicine at an Australian university, as funded by the Commonwealth as a benefit to the person as a student, less a pro - rata proportion based on any proportion of return of service obligation completed; and

  (ii)   interest on the amount worked out under subparagraph   (i) and applied in accordance with the Bonded Medical Program rules; and

  (b)   if the person was a bonded participant covered by subsection   124ZE(3)--both:

  (i)   100% of the Commonwealth funded scholarship provided to the person in relation to their course of study in medicine at an Australian university as a benefit to the person as a student, less a pro - rata proportion based on any proportion of return of service obligation completed; and

  (ii)   interest on the amount worked out under subparagraph   (i) and applied in accordance with the Bonded Medical Program rules.

  (2)   The amounts mentioned in subsection   (1) are recoverable as a debt due to the Commonwealth from the person or the estate of the person.

Additional consequences for former Medical Rural Bonded Scholarship participants

  (3)   Subject to subsection   (6), a medicare benefit is not payable in respect of a professional service rendered by, or on behalf of, a medical practitioner who:

  (a)   was a bonded participant covered by subsection   124ZE(3); and

  (b)   withdraws from the Bonded Medical Program after the person's census date for the second year of the person's course of study in medicine at an Australian university.

  (4)   The period during which medicare benefits are not payable under subsection   (3) is a period of 6 years from the day the person withdraws from the Bonded Medical Program (even if this period extends beyond the 18 year period mentioned in paragraph   124ZF(2)(a)).

  (5)   Subsection   (3) applies whether or not the medical practitioner was a medical practitioner at the time the person withdrew from the Bonded Medical Program.

Exception

  (6)   This section does not apply to a person if:

  (a)   a determination is made under subsection   124ZEA(3) that exceptional circumstances apply in relation to the person; and

  (b)   the written notice of the determination includes a statement that the Secretary is satisfied that the person withdrew from the Bonded Medical Program under section   124ZP as a result of the exceptional circumstances.