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HEALTH INSURANCE ACT 1973 - SECT 42B

Grants in respect of certain payments made by approved organizations

  (1)   In subsection   (2), a reference to a prescribed scheme, in relation to an approved organization that provides an approved health service, is a reference to a scheme under which, where a professional service is rendered (otherwise than in the course of the provision of that health service) to or in respect of an eligible person who is registered by the organization as a person entitled to that health service, there is payable by the organization to the person who incurred the medical expenses in respect of the service or, with his or her authority, to any other person an amount that is not less than the prescribed amount in relation to that service.

  (2)   Where an approved organization that provides an approved health service gives effect to a prescribed scheme, it is entitled to be paid:

  (a)   in respect of each professional service in respect of which the amount payable by it in accordance with the scheme has been paid--an amount equal to the prescribed amount in relation to that service; and

  (b)   an amount equal to such part of the management expenses of the organization as the Minister considers to be attributable to the giving of effect to the scheme or such proportion of that part of those expenses as the Minister determines from time to time.

  (3)   In this section, prescribed amount means:

  (a)   in relation to a professional service rendered to a person who is a medically insured person--the amount of the medicare benefit that would, but for paragraph   17(1)(d), be payable under Part   II in respect of that service; or

  (b)   in relation to a professional service rendered to a person who is not a medically insured person--the amount of the medicare benefit that would, but for paragraph   17(1)(d), be payable under Part   II in respect of that service if the person were a medically insured person.


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