Commonwealth Numbered Regulations - Explanatory Statements

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NATIONAL HEALTH AMENDMENT REGULATIONS 2000 (NO. 1) 2000 NO. 2

STATUTORY RULES 2000 No. 2

Issued by authority of the Minister for Health and Aged Care

National Health Act 1953

National Health Amendment Regulations 2000 (No. 1)

Section 140 of the National Health Act 1953 (the Act) provides that the Governor-General may make Regulations for the purposes of the Act.

Subsection 140(2) of the Act enables the regulations to preclude or modify a specified provision of the Act relating to an applicable benefits arrangement for a specified registered health benefits organisation. This provision is used to enable registered health benefits organisations to pay health insurance benefits under their applicable benefits arrangements to contributors participating in pilot or demonstration schemes that could lead to an enhancement of the health insurance industry. For example, they allow the participating funds to pay health insurance benefits for hospital type treatment rendered to patients in community settings. The participating funds would then be eligible to receive payments under the Health Benefits Reinsurance Trust Fund.

Regulation 4B of the National Health Regulations extends the definition of "applicable benefits arrangement" in section 5A of the Act in respect of specified registered health benefits organisations participating in specified programs.

The Amending Regulations amend regulation 4B to:

*       extend the Hornsby Ku-ring-gai Coordinated Care Trial, which expired on 31 December 1999, to 31 August 2000 (Schedule 1); and

*       establish the Epworth Hospital-in-the-Home Pilot Project and specify the funds participating in that Project (Schedule 2). The Project will trial the concept of providing hospital type treatment to patients in their home.

Details of the Amending Regulations are set out in the Attachment.

Regulations 1 to 3 (formal provisions) and Schedule 1 (amendments to extend the Hornsby Ku-ring-gai Co-ordinated Care Trial) commenced on 1 January 2000.

Schedule 1 extending the Hornsby Ku-ring-gai Co-ordinated Care trial commenced on 1 January 2000 to ensure the continuous operation of the trial which expired on 31 December 1999. This retrospectivity does not infringe subsection 48(2) of the Acts Interpretation Act 1901 in that it confers a benefit, rather than a liability, on the participating funds. Had the regulations not been backdated, there would have been an interregnum during which the trial would not have been authorised by law. The participating funds would have been required to meet the full costs of any benefits paid during the interregnum under their ancillary tables rather than their applicable benefits arrangements and, as a consequence, would not have been eligible to receive payments from the Health Benefits Reinsurance Trust Fund.

Schedule 2 (amendments to establish the Epworth Hospital-in-the-Home trail) commenced on gazettal.

ATTACHMENT

NOTES ON CLAUSES

Regulation 1 provides that the Regulations may be cited as the National Health Amendment Regulations 2000 (No. 1).

Regulation 2 provides that:

Regulations 1 to 3 and Schedule 1 (amendments to extend the Hornsby Ku-ring-gai Coordinated Care Trial) commence on 1 January 2000.

Schedule 2 (amendments to establish the Epworth Hospital-in-the-Home trail) commence on gazettal.

Regulation 3 provides that the National Health Regulations 1954 are amended by Schedules 1 and 2.

Items 1, 2 and 3 of Schedule 1 amend subregulations 4B(4) and 4B(7) and Schedule 3 (Part 4, item 1) by replacing the reference to 3 1 December 1999 with a reference to 3 1 August 2000. These amendments will have the effect of extending the Hornsby Ku-ring-gai Coordinated Care Trial until 31 August 2000.

Item 1 of Schedule 2 inserts a new subregulation 4B(5B). New subregulation 4B(5B) specifies the funds participating in the Epworth Hospital-in-the-Home Pilot Project and provides that they are affected by the modifications to subsections 5A(1) and (3) of the Act that are set out in Part 7 of Schedule 3 until 28 February 2001.

Item 2 of Schedule 2 inserts a new subregulation 4B(10) which provides that the Epworth Hospital-in-theHome Pilot Project has effect until 28 February 2001.

Item 3 of Schedule 2 inserts a new Part 7 into Schedule 3 of the Regulations. New Part 7 outlines the modifications to section 5A of the Act in respect of the funds participating in the Epworth Hospital-in-theHome Pilot Project and defines some of the key terms used in those modifications.