NATIONAL HEALTH AMENDMENT ACT (No. 2) 1978
No. 132 of 1978
An Act to amend the National Health Act 1953, and for other purposes.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the National Health Amendment Act (No. 2) 1978.
(2) The National Health Act 1953 is in this Act referred to as the Principal Act.
Commencement
2. (1) Subject to this section, this Act shall come into operation on 1 November 1978.
(2) Sections 1 and 2, paragraph 3(1)(b), sub-section 3(2) and section 44 shall come into operation on the day on which this Act receives the Royal Assent.
(3) Sections 20 to 42 (inclusive) shall come into operation on a date to be fixed by Proclamation.
Interpretation
3. (1) Section 4 of the Principal Act is amended—
(a) by inserting in sub-section (1), after the definition of “approved”, the following definitions:
“‘basic hospital benefits table’ or ‘basic table’, in relation to a registered hospital benefits organization, means a table that incorporates a range of benefits of the following kinds and no other benefits:
(a) in respect of hospital treatment provided to persons as in-patients of a hospital in the State or Territory to which the table relates—benefits equal to the fees charged for the provision of hospital treatment in a recognized hospital in that State or Territory in respect of a private patient in other than a single room, being a patient who is not entitled to receive compensation or damages in respect of the costs of that hospital treatment;
(b) in respect of hospital treatment provided to persons as in-patients of a hospital in any other State or Territory—benefits equal to—
(i) the fees charged for the provision of hospital treatment in a recognized hospital in the State or Territory to which the table relates in respect of a private patient in other than a single room, being a patient who is not entitled to receive compensation or damages in respect of the costs of that hospital treatment; or
(ii) the fees charged for the provision of hospital treatment in a recognized hospital in the State or Territory in which the hospital is situated in respect of such a patient,
whichever are the greater;
(c) in respect of professional services rendered to persons as in-patients of a recognized hospital, whether situated in the State or Territory to which the table relates or elsewhere, by medical practitioners employed by, or under arrangements made by, the hospital—benefits equal to the charges made by the hospital for the provision of those services to patients who are not entitled to receive compensation or damages in respect of the cost of those services;
(d) in respect of out-patient services provided to persons by a hospital in a State or Territory in which recognized hospitals make charges for the provision of out-patient services—
(i) if that hospital is a recognized hospital—benefits equal to the charges made by that hospital for the provision of those services to persons who are not entitled to receive compensation or damages in respect of the cost of those services; or
(ii) if that hospital is not a recognized hospital—benefits equal to the charges made by that hospital for the provision of those services or the charges made by recognized hospitals in that State or Territory for the provision of services of that kind to persons who are not entitled to receive compensation or damages in respect of the cost of those services, whichever are the less;
(e) benefits of the kind referred to in sub-section (1) of section 73c;
(f) such other benefits (if any) as are prescribed for the purposes of this definition;
“‘basic medical benefits table’ or ‘basic table’, in relation to a registered medical benefits organization, means a table that incorporates a range of benefits of the following kinds and no other benefits:
(a) a range of benefits in respect of the provision of every professional service in respect of which a Commonwealth medical benefit is payable, such that each benefit in respect of a professional service is an amount that, when added to the amount of the Commonwealth medical benefit in respect of that professional service, equals the amount of the guaranteed medical benefit in respect of that professional service;
(b) such other benefits (if any) as are prescribed for the purposes of this definition;”;
(b) by adding at the end of sub-paragraph (i) of paragraph (c) of the definition of “dependant” (in relation to a pensioner) in sub-section (1) “but is under the age of 25 years”;
(c) by inserting after the definition of “Director” in sub-section (1) the following definition:
“‘fund medical benefit’, in relation to a professional service, means the amount payable, in accordance with a basic table, to a contributor to a medical benefits fund conducted by a registered organization;”;
(d) by inserting in sub-section (1), after the definition of “Government nursing home”, the following definition:
“‘guaranteed medical benefit’, in relation to a professional service, means an amount equal to the amount that the Commonwealth medical benefit in respect of that professional service would be if—
(a) the reference in sub-paragraph (i) of paragraph (c) of sub-section (2) of section 10 of the Health Insurance Act 1973 to 40% were a reference to 75%; and
(b) each of the references in sub-paragraph (ii) of paragraph (c) of sub-section (2) of that section to $20 were a reference to $10;”;
(e) by inserting in sub-section (1), after the definition of “nursing home fund benefit”, the following definitions:
“‘optional hospital benefits table’ or ‘optional table’, in relation to a registered hospital benefits organization, means a table of benefits that is declared by the Minister, under section 73e, to be an optional hospital benefits table;
“‘optional medical benefits table’ or ‘optional table’, in relation to a registered medical benefits organization, means a table of benefits that is declared by the Minister, under section 73e, to be an optional medical benefits table;”;
(f) by inserting in sub-section (1), after the definition of “qualified nursing home patient”, the following definition:
“‘records’, in relation to a registered organization, includes claims for Commonwealth medical benefits or fund benefits by contributors or registered persons lodged with the organization and any other documents in the custody or control of the organization relating to such claims;”;
(g) by inserting in sub-section (1), after the definition of “restricted membership organization”, the following definition:
“‘supplementary hospital table’, in relation to a registered hospital benefits organization, means a table of benefits that—
(a) is not a basic table or an optional table; and
(b) includes benefits in respect of—
(i) the provision of hospital accommodation in a single room in a recognized hospital; or
(ii) the provision of hospital accommodation in a private hospital;”;
(h) by omitting from sub-section (1) the definitions of “the standard hospital benefits table” or “the standard table” and “the standard medical benefits table” or “the standard table”;
(j) by omitting from sub-section (1) the definition of “the Northern Territory”;
(k) by adding at the end of sub-section (1) the following definition: “‘waiting period’, in relation to a contributor, means a period that, by virtue of section 4a, is to be deemed to be a waiting period for the purposes of this Act in relation to that contributor.”;
(l) by omitting from paragraph (a) of sub-section (1b) “the standard hospital benefits table” and substituting “a basic table or an optional table”; and
(m) by omitting from paragraph (b) of sub-section (1b) “the standard hospital benefits table” and substituting “that table”.
(2) Where, immediately before the commencement of paragraph (1)(b), a dependant of a pensioner was a person who had attained the age of 25 years, that person shall, on and after the commencement of that paragraph continue to be treated as a dependent of that pensioner for the purposes of the National Health Act 1953 notwithstanding the amendment made by that paragraph.
4. After section 4 of the Principal Act the following section is inserted:
Waiting period
“4a. (1) Where, in accordance with the rules of a registered organization, a contributor to a medical benefits fund or a hospital benefits fund conducted by the organization, being a contributor in accordance with a basic table or an optional table, is not entitled to fund benefits in respect of services, treatment or care if rendered or given before the expiration of a specified period commencing on the first day in respect of which he pays contributions to that fund, that specified period shall be deemed to be a waiting period for the purposes of this Act in relation to that contributor.
“(2) Notwithstanding sub-section (1), a period of exclusion from benefit, whether full benefit or partial benefit, that is a period of a kind specified in a guideline determined by the Minister under sub-section (2) of section 73e shall not be deemed to be a waiting period for the purposes of this Act in relation to a contributor.”.
Interpretation
5. Section 66 of the Principal Act is amended—
(a) by omitting from sub-section (1) the definitions of “basic benefit entitlement”, “Commonwealth and miscellaneous fund benefit”, “extra charges”, “fund benefit”, “pre-existing ailment”, “special account”, “special account contributor” and “standard rate benefit”; and
(b) by omitting sub-section (2).
Application by organizations for registration as medical benefits organizations
6. Section 67 of the Principal Act is amended—
(a) by omitting from sub-paragraph (i) of paragraph (c) of sub-section (2) “medical fund benefits, or any other benefits” and substituting “fund benefits”; and
(b) by omitting from sub-paragraph (i) of paragraph (c) of sub-section (4) “medical fund benefits, or any other benefits” and substituting “fund benefits”.
Application by organizations for registration as hospital benefits organizations
7. Section 68 of the Principal Act is amended—
(a) by omitting from sub-paragraph (i) of paragraph (c) of sub-section (2) “hospital fund benefits, or any other benefits” and substituting “fund benefits”; and
(b) by omitting from sub-paragraph (i) of paragraph (c) of sub-section (4) “hospital fund benefits, or any other benefits” and substituting “fund benefits”.
8. Section 73ba of the Principal Act is repealed and the following section substituted:
Conditions of registration
“73ba. The registration of an organization shall, whether the registration was effected before, or is effected after, the commencement of this section, be deemed to be subject to the conditions set out in the Schedule.”.
Reinsurance Account in hospital benefits fund
9. Section 73bb of the Principal Act is amended—
(a) by omitting from sub-sections (2) and (4) “the standard table” (wherever occurring) and substituting “a basic table or an optional table”;
(b) by omitting sub-section (10); and
(c) by adding at the end thereof the following sub-section:
“(12) Where benefits are payable, in accordance with the rules of a registered hospital benefits organization, in respect of hospital treatment outside Australia, then, for the purposes of this section—
(a) those benefits shall be deemed to be hospital benefits;
(b) those benefits shall be deemed to be included in a basic table; and
(c) any contributions that are identifiable as contributions solely in respect of those benefits shall be deemed to be contributions in respect of a basic table.”.
Refusal to admit person as contributor on ground of health
10. Section 73bf of the Principal Act is amended—
(a) by omitting from paragraph (a) of sub-section (1) “the standard table” and substituting “a basic table”;
(b) by omitting from sub-section (1) “the standard table” (second occurring) and substituting “that table”;
(c) by omitting from sub-paragraph (i) of paragraph (c) of sub-section (3) “the standard table” and substituting “the table to which the request relates”; and
(d) by omitting from sub-section (4) “the standard table” (wherever occurring) and substituting “the table to which the request relates”.
11. After section 73bf of the Principal Act the following section is inserted:
Refusal of contributions of patient in institution
“73bfa. (1) Where a registered organization refuses to accept payment of the contributions of a person, being a patient in an institution, who is, or wishes to become, a contributor, in respect of a basic table, to a hospital benefits fund conducted by it, the person may request the Minister to direct the organization to accept his contributions in respect of the basic table to that fund.
“(2) A request under sub-section (1)—
(a) shall be made by delivering the request to the Director for the State or Territory in respect of which the organization is registered; and
(b) shall be accompanied by a statement setting out the circumstances of the refusal.
“(3) The Minister shall, as soon as practicable after a request is made to him under sub-section (1)—
(a) inform the registered organization concerned that the request has been made;
(b) furnish to the registered organization a copy of the statement that accompanied the request in accordance with paragraph (b) of sub-section (2); and
(c) require the registered organization to furnish to him, in writing, within 14 days after receipt of the requirement—
(i) a statement of its general practice in respect of the acceptance of contributions from persons who are, or wish to become, contributors, in respect of a basic table, to the fund concerned; and
(ii) any comments it wishes to make concerning the statement referred to in paragraph (b).
“(4) Where a person makes a request under sub-section (1) with respect to a hospital benefits fund conducted by a registered organization, the Minister shall, as soon as practicable after the expiration of 14 days after the requirement referred to in paragraph (c) of sub-section (3) was made—
(a) if—
(i) after consideration of the statement that accompanied the request and of any statement and comments furnished by the organization, he is satisfied that there were no reasonable grounds for the refusal to accept payment of the contributions of the person; or
(ii) the organization has failed to furnish a statement in pursuance of the requirement referred to in paragraph (c) of sub-section (3),
direct the organization to accept payment of the contributions of the person; or
(b) in any other case—refuse to give that direction.
“(5) A direction under this section shall not require a restricted membership organization to accept payment of contributions of a person who wishes to become a contributor to a hospital benefits fund conducted by it if the person is not eligible, in accordance with the rules of the organization, for membership of that fund.”.
Minister may require information to be furnished
12. Section 73bg of the Principal Act is amended—
(a) by inserting in sub-section (1) “, being benefits that became payable before 1 November 1978,” after “benefits”;
(b) by omitting from sub-section (2) “the Health Insurance Commission” and substituting “him”; and
(c) by omitting sub-section (3).
Conditions of registration relating to nursing home care
13. Section 73c is amended by omitting from sub-section (3) “during which no benefit is payable in respect of a contributor or a dependant of a contributor”.
14. Section 73e of the Principal Act is repealed and the following sections are substituted:
Guidelines for optional tables
“73e. (1) In this section—
‘hospital benefits table’ means a table of benefits offered, or to be offered, by a registered hospital benefits organization, other than a basic table;
‘medical benefits table’ means a table of benefits offered, or to be offered, by a registered medical benefits organization, other than a basic table.
“(2) The Minister may, by writing signed by him, determine guidelines with respect to hospital benefits tables and medical benefits tables.
“(3) The Minister shall forward a copy of each determination made by him under sub-section (2) to—
(a) where the determination is a determination with respect to hospital benefits tables—every registered hospital benefits organization; or
(b) where the determination is a determination with respect to medical benefits tables—every registered medical benefits organization.
“(4) The Rules Publication Act 1903 does not apply in relation to a determination under sub-section (2).
“(5) Where the Minister is satisfied that—
(a) a hospital benefits table—
(i) includes benefits with respect to the provision of hospital treatment in a hospital in respect of a private patient in other than a single room;
(ii) includes benefits of a kind referred to in sub-section (1) of section 73c; and
(iii) where guidelines are in force under sub-section (2) with respect to hospital benefits tables—complies with those guidelines; or
(b) a medical benefits table—
(i) includes benefits with respect to the provision of a professional service; and
(ii) where guidelines are in force under sub-section (2) with respect to medical benefits tables—complies with those guidelines,
the Minister shall declare that that table is an optional hospital benefits table or an optional medical benefits table, as the case may be.
“(6) Where the Minister makes a declaration under sub-section (5) with respect to a hospital benefits table or a medical benefits table, he shall notify, in writing, the registered organization concerned accordingly.
“(7) In this section, a reference to a registered hospital benefits organization or a registered medical benefits organization shall be read as including a reference to an organization that has made an application for registration under this Part as a registered hospital benefits organization or a registered medical benefits organization, as the case may be.
Exemptions of professional services from basic medical benefits table
“73f. (1) A registered medical benefits organization may make application to the Minister for an exemption from the requirement to include in the basic medical benefits table provided, or intended to be provided, for the benefit of the contributors to a medical benefits fund conducted, or to be conducted, by it a professional service, or professional services, specified in the application.
“(2) The Minister may, if he is satisfied that it is proper to do so, grant an exemption to a registered medical benefits organization in accordance with an application under sub-section (1).
“(3) In this section a reference to a registered medical benefits organization shall be read as including a reference to an organization that has made an application for registration under this Part as a registered medical benefits organization.”.
15. Section 74c of the Principal Act is repealed and the following sections substituted:
Registered organizations to Keep records and furnish information
“74c. (1) A registered organization shall keep such financial and other records concerning the operation of any medical benefits fund or hospital benefits fund conducted by it as are prescribed.
“(2) In this section, ‘record’ does not include records referred to in the condition of registration set out in paragraph (k) of the Schedule.
Returns of information by registered organizations
“74d. The regulations may provide for a registered organization to furnish to the Permanent Head, at such times as are, and in such manner as is, prescribed, such information drawn from the records kept by the organization in accordance with this Act (including a condition of registration set out in the Schedule) as is prescribed.”.
Annual report by Permanent Head
16. Section 76a of the Principal Act is amended by omitting paragraphs (c) and (d) of sub-section (2) and substituting the following paragraph:
“(c) fund benefits payable out of the fund;”.
Changes of constitution, articles or rules of registered organizations
17. Section 78 of the Principal Act is amended—
(a) by omitting sub-sections (1), (2), (3) and (4) and substituting the following sub-sections:
“(1) If, after the registration of an organization under this Part, the registered organization changes—
(a) the constitution of the organization;
(b) the articles of association of the organization; or
(c) the rules of the organization,
the registered organization shall, within 7 days after the change is made, furnish to the Permanent Head notification, in writing, of the change.
“(2) If the Minister considers that a change notified under sub-section (1) alters or affects—
(a) the benefits, the amounts of the benefits or the conditions relating to the provision of the benefits provided by the organization in accordance with a basic table;
(b) the amounts of the contributions, or the conditions relating to the payment of the contributions, for benefits in accordance with any table; or
(c) the assets, income, expenditure, or the probable income or expenditure, of the organization,
the Minister shall make a declaration, in writing, accordingly and thereupon, the change is inoperative and has no legal effect unless and until the Minister’s approval of the change has been given in accordance with this section.
“(3) The Permanent Head shall refer to the Committee, for examination and report to the Minister, a notification under sub-section (1) of a change in relation to which sub-section (2) applies.”;
(b) by adding at the end of paragraph (a) of sub-section (5) “or”;
(c) by omitting paragraph (c) of sub-section (5); and
(d) by omitting sub-section (8a).
Repeal of Divisions 1a and 2 of Part VI
18. Divisions 1a and 2 of Part VI of the Principal Act are repealed.
Order of court to be binding on all persons, &c.
19. Section 82zl of the Principal Act is amended by adding at the end thereof the following sub-section:
“(2) An order referred to in sub-section (1) does not have effect in relation to moneys standing to the credit of a bank account maintained by a registered organization in accordance with sub-section (2) of section 20e of the Health Insurance Act 1973.”.
Interpretation
20. Section 84 of the Principal Act is amended—
(a) by omitting from the definition of “brand” in sub-section (1) “pharmaceutical benefit” (wherever occurring) and substituting “drug or medicinal preparation”;
(b) by inserting in sub-section (1), after the definition of “Joint Committee” the following definition:
“‘participating dental practitioner’ means a dental practitioner in relation to whom an approval is in force under section 84a;”; and
(c) by omitting from the definition of “pharmaceutical benefit” in sub-section (1) “the next succeeding section” and substituting “section 85”.
21. After section 84 of the Principal Act the following section is inserted in Division 1 of Part VII:
Participating dental practitioners
“84a. (1) A dental practitioner may give to the Permanent Head a notification, in writing, that he wishes to become a participating dental practitioner for the purpose of this Part.
“(2) Where the Permanent Head receives a notification under sub-section (1), he shall, by writing under his hand, approve the dental practitioner concerned as a participating dental practitioner for the purposes of this Part.
“(3) The Permanent Head shall notify the dental practitioner concerned of his approval under this section.”.
Pharmaceutical benefits
22. Section 85 of the Principal Act is amended—
(a) by omitting sub-section (5); and
(b) by omitting sub-section (7).
23. After section 85 of the Principal Act the following section is inserted:
Determinations of forms of pharmaceutical benefits with respect to classes of persons
“85a. (1) The Minister may determine, by reference to strength, type of unit, size of unit or otherwise, the form or forms of a pharmaceutical benefit that is or are allowable for the purposes of this Part for prescription by persons included in a class of persons specified in the determination.
“(2) The Minister may, with respect to the writing of prescriptions by persons included in a specified class of persons for the supply of a pharmaceutical benefit—
(a) determine the maximum quantity or number of units of the pharmaceutical benefit that may, in one prescription, be directed to be supplied on any one occasion;
(b) determine the maximum number of occasions on which the supply of the pharmaceutical benefit may, in one prescription, be directed to be repeated, either for all purposes or for particular purposes; and
(c) determine the manner of administration that may, in a prescription, be directed to be used in relation to the pharmaceutical benefit.
“(3) The regulations may make provision authorizing the variation of the application, in relation to persons included in a class of persons, of a determination under paragraph (a) or (b) of sub-section (2) and, where such a variation is made, the determination shall be deemed to have effect as varied.
“(4) A copy of each determination made by the Minister under this section shall be published in the Gazette.”.
Eligibility for pharmaceutical benefits
24. Section 86 of the Principal Act is amended—
(a) by inserting in sub-section (1) “or dental treatment by a participating dental practitioner” after “practitioner”; and
(b) by omitting sub-section (2).
Limited charges for pharmaceutical benefits
25. Section 87 of the Principal Act is amended—
(a) by inserting in sub-section (1) “, a participating dental practitioner” after “practitioner”; and
(b) by omitting from sub-section (5) “section 85” and substituting “ sub-section (2) of section 85a”.
26. Section 88 of the Principal Act is repealed and the following section substituted:
Prescribing of pharmaceutical benefits
“88. (1) Subject to this Part, a medical practitioner or a participating dental practitioner is authorized to write a prescription for the supply of a pharmaceutical benefit.
“(2) A medical practitioner or a participating dental practitioner shall not, by writing a prescription or otherwise, authorize the supply of a pharmaceutical benefit, being a narcotic drug, for the purpose of the administration of that benefit to himself.
“(3) A medical practitioner or a participating dental practitioner shall not write a prescription for the supply of a pharmaceutical benefit otherwise than for the medical treatment or dental treatment, as the case may be, of a person requiring that pharmaceutical benefit.
“(4) Where a determination of the Minister under sub-section (1) of section 85a is applicable to a medical practitioner or a participating dental practitioner, the medical practitioner or the participating dental practitioner, as the case may be, shall not write a prescription for the supply of a pharmaceutical benefit except in accordance with that determination or any other determination that is applicable to him.
“(5) Subject to sub-section (6), a medical practitioner or a participating dental practitioner is not authorized, in a prescription for the supply of a pharmaceutical benefit, to direct that—
(a) there be supplied on one occasion a quantity or number of units of the pharmaceutical benefit in excess of the maximum quantity or number of units (if any) applicable under a determination of the Minister under sub-section (2) of section 85a; or
(b) the pharmaceutical benefit is to be administered in a manner other than the manner (if any) applicable under a determination of the Minister under sub-section (2) of section 85a.
“(6) Where a medical practitioner may, in accordance with this Part, direct a repeated supply of a pharmaceutical benefit, he may, in such circumstances and subject to such conditions as are prescribed, instead of directing a repeated supply, direct in the prescription the supply on one occasion of a quantity or number of units of the pharmaceutical benefit not exceeding the total quantity or number of units that could be prescribed if he directed a repeated supply.
“(7) Except in accordance with a determination of the Minister under sub-section (2) of section 85a, a medical practitioner or a participating dental practitioner is not authorized, in a prescription for the supply of a pharmaceutical benefit, to direct that the supply of the pharmaceutical benefit be repeated on one or more occasions.
“(8) The regulations may provide that a pharmaceutical benefit may be prescribed by a medical practitioner or a participating dental practitioner for supply under this Part only—
(a) for the treatment of persons included in a prescribed class of persons;
(b) for a prescribed purpose, including the treatment of a prescribed disease or condition, either in relation to persons generally or in relation to persons included in a prescribed class of persons; or
(c) subject to prescribed conditions.”.
Pharmaceutical benefits to be supplied only on prescription, &c.
27. Section 89 of the Principal Act is amended by inserting in paragraph (a) “or a participating dental practitioner” after “practitioner” (wherever occurring).
Approved hospital authorities
28. Section 94 of the Principal Act is amended by omitting from sub-section (6) “sub-section (3), (5) or (6) of section 85” and substituting “section 85 or 85a”.
Suspension or revocation of approval or authorization
29. Section 95 of the Principal Act is amended—
(a) by omitting from sub-section (1) “or” (first occurring) and substituting “, a participating dental practitioner or an”;
(b) by inserting after paragraph (a) of sub-section (1) the following paragraph:
“(aa) the approval of a dental practitioner as a participating dental practitioner under section 84a;”;
(c) by omitting from sub-section (5) “or the approval or authority of a medical practitioner” and substituting “, the approval or authority of a medical practitioner or the approval of a dental practitioner as a participating dental practitioner”; and
(d) by inserting in sub-section (8) “, dental practitioner” after “practitioner”.
Cancellation of approval or authority
30. Section 98 of the Principal Act is amended by inserting after paragraph (a) of sub-section (1) the following paragraph:
“(aa) a participating dental practitioner requests that his approval as a participating dental practitioner under section 84a be cancelled;”.
Payment for supply of benefits
31. Section 99 of the Principal Act is amended by omitting from paragraph (b) of sub-section (2a) “sub-section (5)” and substituting “sub-section (6)”.
Offences
32. Section 103 of the Principal Act is amended—
(a) by inserting in paragraph (d) of sub-section (5) “, a participating dental practitioner” after “practitioner”; and
(b) by omitting paragraph (e) of sub-section (5).
Powers of authorized persons
33. Section 104 of the Principal Act is amended by inserting in paragraph (a) of sub-section (1) “, participating dental practitioner” after “authorized medical practitioner”.
Applications for review by Tribunal
34. Section 105ab of the Principal Act is amended by adding at the end of sub-section (8) “or the approval of a dental practitioner as a participating dental practitioner”.
Interpretation
35. Section 107 of the Principal Act is amended by inserting after sub-section (1) of the following sub-section:
“(1a) In this Part, ‘approved pharmaceutical chemists’ and ‘participating dental practitioner’ have the same respective meanings as in Part VII.”.
Reports not to relate to conduct of chemists or participating dental practitioners
36. Section 112 of the Principal Act is amended—
(a) by inserting in sub-section (1) “or a participating dental practitioner” after “chemist”; and
(b) by inserting in sub-section (2) “or a participating dental practitioner” after “chemist”.
37. After Division 2 of Part VIII of the Principal Act the following Division is inserted:
“Division 2aa—Dental Services Committees of Inquiry
Establishment of Dental Services Federal Committee of Inquiry
“112aa. (1) The Minister may establish a Committee to be called the Dental Services Federal Committee of Inquiry.
“(2) The Committee shall consist of 5 members, namely—
(a) the Permanent Head; and
(b) 4 dental practitioners.
“(3) The members referred to in paragraph (2)(b) shall be appointed by the Minister and shall be so appointed from among dental practitioners nominated by the Australian Dental Association.
Functions of Federal Committee
“112ab. The Dental Services Federal Committee of Inquiry shall inquire into, and report to the Minister or the Permanent Head on, any matter referred to the Committee by the Minister or the Permanent Head, as the case may be, in respect of or arising out of the services or conduct of participating dental practitioners in connection with the supply of pharmaceutical benefits under Part VII.
Establishment of Dental Services State Committees of Inquiry
“112ac. (1) The Minister may establish in each State one or more Committees, each of which shall be called a Dental Services Committee of Inquiry for the State in which it is established.
“(2) Each Committee shall consist of 5 members, namely—
(a) the Director; and
(b) 4 dental practitioners.
“(3) The members referred to in paragraph (2)(b) shall be appointed by the Minister and shall be so appointed from among dental practitioners nominated by the branch of the Australian Dental Association in that State.
Functions of State Committees
“112ad. A Dental Services Committee of Inquiry established in a State shall inquire into, and report to the Minister or the Permanent Head on, any matter referred to the Committee by the Minister or the Permanent Head, as the case may be, in respect of or arising out of the services or conduct of participating dental practitioners in connection with the supply in the State in which the Committee is established of pharmaceutical benefits under Part VII.
Reports not to relate to conduct of chemists or medical practitioners
“112ae. (1) Subject to sub-section (2), nothing in this Division authorizes a Committee to report on the conduct of an approved pharmaceutical chemist or a medical practitioner in relation to a matter upon which the Committee makes inquiry.
“(2) Sub-section (1) does not prevent a Committee from referring in a report to the conduct of an approved pharmaceutical chemist or a medical practitioner where that reference is incidental to a report by the Committee on the conduct of a participating dental practitioner.
“(3) In this section, ‘Committee’ means a Committee established under this Division.”.
Reports not to relate to conduct of medical practitioners or participating dental practitioners
38. Section 117 of the Principal Act is amended—
(a) by inserting in sub-section (1) “or a participating dental practitioner” after “practitioner”; and
(b) by inserting in sub-section (2) “or a participating dental practitioner” after “practitioner”.
39. Section 125 of the Principal Act is repealed and the following section is substituted:
Medical practitioner, dental practitioner or chemist affected by inquiry to be given notice
“125. (1) Where a matter referred to a Committee concerns the conduct of a medical practitioner, a participating dental practitioner or an approved pharmaceutical chemist, as the case may be, the Chairman of the Committee shall cause notice in writing of the matter so referred, and of the time and place at which the Committee intends to hold an inquiry into the matter, to be given to that medical practitioner, participating dental practitioner or approved pharmaceutical chemist at least 10 days before the date of the inquiry.
“(2) For the purposes of ascertaining whether a matter referred to a Committee concerns the conduct of a medical practitioner, a participating dental practitioner or an approved pharmaceutical chemist, the Committee may, before causing notice to be given to any person, meet and examine any written evidence or allegation referred to the Committee by the Minister or the Permanent Head in relation to the matter.
“(3) Notice under sub-section (1) shall be given by delivering it personally to the medical practitioner, participating dental practitioner or approved pharmaceutical chemist, as the case may be, or by sending it by prepaid registered letter addressed to him at his last known place of abode or business or by leaving it at his last known place of abode or business with some person apparently an inmate of that place and apparently not less than 16 years of age.
“(4) Subject to sub-section (5), the Committee shall afford a medical practitioner, a participating dental practitioner or an approved pharmaceutical chemist to whom notice has been given in pursuance of sub-section (1) an opportunity of examining witnesses, giving evidence and calling witnesses on his behalf and of addressing the Committee.
“(5) Where a medical practitioner, a participating dental practitioner or an approved pharmaceutical chemist to whom notice has been given in pursuance of sub-section (1) fails to attend at the time and place specified in the notice, the Committee may, unless it is satisfied that the medical practitioner, participating dental practitioner or approved pharmaceutical chemist is prevented by illness or other unavoidable cause from so attending, proceed to hold the inquiry in his absence.
“(6) For the purposes of this section ‘inquiry’ includes a reconsideration of a question by a Committee in pursuance of sub-section (4) of section 124 where that reconsideration involves the rehearing of evidence or the hearing of further evidence.
“(7) When a matter referred to a Federal Committee of Inquiry concerns a course of conduct of medical practitioners, participating dental practitioners or approved pharmaceutical chemists generally or in a class of cases, the matter shall, for the purposes of this section, be deemed not to concern the conduct of a medical practitioner, a participating dental practitioner or an approved pharmaceutical chemist, as the case may be.”.
40. Section 133 of the Principal Act is repealed and the following section is substituted:
Effect of prosecution for offence
“133. (1) Where a medical practitioner, a participating dental practitioner or an approved pharmaceutical chemist is charged before a court with having committed an offence against this Act or the regulations or against another law of the Commonwealth or of a State or Territory, being an offence that arises out of or is connected with the supply of pharmaceutical benefits under Part VII, the Permanent Head may, if he thinks fit, by notice in writing—
(a) in the case of a medical practitioner—suspend—
(i) the authority to write a prescription for the supply of pharmaceutical benefits conferred upon that medical practitioner by section 88;
(ii) any approval of that medical practitioner under section 92; or
(iii) the authority to supply prescribed pharmaceutical benefits conferred upon that medical practitioner by section 93;
(b) in the case of a participating dental practitioner—suspend the approval of that dental practitioner as a participating dental practitioner under section 84a; or
(c) in the case of an approved pharmaceutical chemist—suspend the approval of that pharmaceutical chemist under section 90.
“(2) If a medical practitioner, dental practitioner or pharmaceutical chemist is convicted of an offence referred to in sub-section (1), the Minister may, by notice in writing—
(a) where the Permanent Head has, under sub-section (1), suspended an authority or approval that relates to the medical practitioner, dental practitioner or pharmaceutical chemist—remove that suspension; and
(b) suspend, or further suspend, for such period as he specifies in the notice, or revoke, any authority or approval referred to in a paragraph of sub-section (1), being an authority or approval that relates to the medical practitioner, dental practitioner or pharmaceutical chemist.
“(3) For the purposes of sub-section (2), a person shall be deemed to have been convicted of an offence if the court concerned thought that the charge in relation to the offence was proved but, without proceeding to conviction, discharged the person conditionally on his entering into a recognizance.
“(4) The Minister may, at any time, by notice in writing—
(a) remove a suspension, or further suspension, imposed under sub-section (2); or
(b) restore any approval or authority revoked under sub-section (2).
“(5) If, upon the hearing of a charge for an offence referred to in sub-section (1), the medical practitioner, dental practitioner or pharmaceutical chemist is acquitted, any suspension under sub-section (1) in relation to him ceases to have effect.
(6) If a medical practitioner, a dental practitioner or a pharmaceutical chemist is charged before a court with an offence referred to in sub-section (1)—
(a) any act or conduct to which the charge relates shall not be referred for investigation or report by a Committee of Inquiry; and
(b) any investigation by a Committee of Inquiry into any such act or conduct shall cease.”.
Effect of suspension or cancellation of approval or authority
41. Section 134 of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-section:
“(1) Where—
(a) the authority conferred upon a medical practitioner by section 88 is suspended or revoked; or
(b) the approval of a dental practitioner as a participating dental practitioner under section 84a is suspended or revoked,
that medical practitioner or dental practitioner shall not, during the period of suspension or after the revocation takes effect, write a prescription for the purposes of Part VII, and an approved pharmaceutical chemist, approved medical practitioner or approved hospital authority shall not supply for the purposes of that Part a pharmaceutical benefit on a prescription written by that medical practitioner or dental practitioner.”.
Evidence
42. Section 139a of the Principal Act is amended by inserting after paragraph (d) of sub-section (1) the following paragraph:
“(da) a dental practitioner was or was not approved as a participating dental practitioner under section 84a;”.
Schedule
43. The Principal Act is amended by adding at the end thereof the Schedule set out in the Schedule to this Act.
Amendments of the National Health Amendment Act 1978
44. (1) Section 2 of the National Health Amendment Act 1978 is amended by omitting sub-sections (2) and (4).
(2) Sections 3, 5, 6, 7 and 15 of the National Health Amendment Act 1978 are repealed.
SCHEDULE Section 43
SCHEDULE TO BE ADDED AT THE END OF THE PRINCIPAL ACT
“SCHEDULE Section 73ba
CONDITIONS OF REGISTRATION OF AN ORGANIZATION
(a) The organization will not carry on business in Australia as a registered medical benefits organization or as a registered hospital benefits organization except in a State or Territory in respect of which it is registered as a registered medical benefits organization or a registered hospital benefits organization, as the case may be.
(b) The organization will permit any contributor to a medical benefits fund or a hospital benefits fund conducted by it to contribute for benefits in respect of himself and his dependants (if any) in accordance with a basic table.
(c) Where the organization conducts a hospital benefits fund, the organization will not offer to the contributors to that fund, whether on its own behalf or on behalf of another person or organization, health insurance in respect of nursing home care other than in accordance with a basic table or an optional table.
(d) The amount of fund benefit payable to a contributor by the organization in respect of a professional service or hospital treatment or other service will not exceed—
(i) in the case of a professional service—the amount by which the medical expenses incurred in respect of that professional service exceed the Commonwealth medical benefit in respect of that professional service; or
(ii) in the case of hospital treatment or other service—the fees or charges incurred in respect of that hospital treatment or other service.
(e) Where the organization conducts a medical benefits fund, the organization will not offer to the contributors to that fund fund benefits in respect of professional services that exceed the amounts by which the fees applicable to those professional services for the purpose of the calculation of Commonwealth medical benefits in respect of those professional services exceed those Commonwealth medical benefits.
(f) The organization will not offer health insurance, whether on its own behalf or on behalf of another person or organization, under which the liability of the insurer is to pay fund benefits in respect of professional services of such amounts that, if they were offered to contributors to a medical benefits fund conducted by the organization, the organization would be in breach of the condition set out in paragraph (e).
(g) Where the organization conducts a hospital benefits fund, the organization will not permit a person to contribute to the fund for benefits in accordance with a supplementary hospital table unless the person also contributes to that fund for benefits in accordance with a basic table or an optional table.
(h) Where the organization conducts a hospital benefits fund, the organization will not offer to the contributors to that fund a table of benefits, not being a basic table or an optional table, that includes benefits with respect to the provision of hospital treatment in a hospital in respect of a private patient in other than a single room.
(j) Where a contributor to a medical benefits fund or a hospital benefits fund conducted by the organization, being a contributor for benefits in accordance with a basic table or an optional table, has ceased to pay contributions, the rules of the organization will—
(i) permit the contributor, at any time before the expiration of a period, being a period of not less than 2 months, specified in the rules to pay the contributions due in respect of the period (in this paragraph referred to as ‘the period in arrears’) commencing on the expiration of the period in respect of which he has paid contributions and ending not later than the date on which he makes the payment; and
(ii) provide that, if the contributor makes the payment referred to in sub-paragraph (i), he is to continue to be eligible for benefits, in accordance with the appropriate table, in respect of the period in arrears.
(k) The organization will institute, and maintain, in a form and manner satisfactory to the Minister, a record of the contributors, and the dependants of the contributors, to any medical benefits fund or hospital benefits fund conducted by it.
(l) Where the organization is a party to an agreement under section 20c of the Health Insurance Act 1973, the organization will institute, and maintain, in a form and manner satisfactory to the Minister—
(i) a record of the persons registered with it as registered persons and the dependants of those persons; and
(ii) a record of such other information in relation to the persons referred to in sub-paragraph (i) as the Minister directs, from time to time, by notice in writing served on the organization.
(m) Where the rules of the organization provide for a waiting period with respect to contributors for benefits in accordance with a basic table, that waiting period will not exceed 2 months.
(n) The rules of the organization will not provide for a waiting period for—
(i) contributors for benefits in accordance with a basic table or an optional table who have transferred to a medical benefits fund or a hospital benefits fund conducted by the organization from such a fund conducted by another organization whose registration under Part VI has been cancelled or is under consideration by the Minister with a view to cancellation; or
(ii) eligible persons who, on or before 1 January 1979, become contributors to a medical benefits fund or a hospital benefits fund conducted by the organization, being contributors for benefits in accordance with a basic table or an optional table.
(o) Where the organization conducts a medical benefits fund, the organization will not pay a benefit from the fund to a person who has taken an assignment of the benefit from the person who is entitled under the rules of the organization to payment of the benefit unless—
(i) that last-mentioned person is a pensioner; and
(ii) the service in respect of which the benefit is payable was rendered in respect of the pensioner or a dependant of the pensioner.
(p) Where the organization conducts a medical benefits fund, the organization will institute and maintain procedures satisfactory to the Minister for the payment out of the funds of the organization or out of advances made under section 20e of the Health Insurance Act 1973 of all claims for Commonwealth medical benefit lodged with the organization in accordance with section 20b of the Health Insurance Act 1973.
(q) Where—
(i) a claim for a Commonwealth medical benefit in respect of a professional service is lodged with the organization in accordance with section 20b of the Health Insurance Act 1973 (including such a claim lodged together with a claim for fund medical benefit in respect of the professional service); and
(ii) the medical expenses incurred in respect of the professional service have not been paid,
the organization will not pay the claimant the Commonwealth medical benefit or the fund benefit (if any) but, if the claimant so requests, the organization will, in lieu of that payment, give him, or post to him at his last known address, a cheque for the amount of the Commonwealth medical benefit or the Commonwealth medical benefit and the fund benefit, as the case may be, drawn in favour of the person who rendered the professional service or, if the professional service was rendered by that person on behalf of another person, in favour of that other person.
(r) Where there is forwarded with a claim for a Commonwealth medical benefit lodged with the organization in accordance with section 20b of the Health Insurance Act 1973 a statement by the person by, or on whose behalf, the service was rendered that the service was of unusual length or complexity, the organization will refer the claim to the Department to be dealt with under section 11 of that Act.
(s) Where an exemption is in force under section 73f in relation to the organization, the organization will—
(i) furnish to all contributors to any medical benefits fund conducted by the organization and to all persons registered with it as registered persons; and
(ii) publish, in a manner satisfactory to the Minister, for the information of eligible persons who may wish to register with the organization as registered persons,
the particulars of the exemption, including a description of the professional service or professional services affected by the exemption, and a statement setting out the effect of the exemption on the rights of contributors and registered persons.
(t) The organization will comply with any direction of the Minister under this Act served on it.”.