House of Representatives

Explanatory Memorandum

Circulation with the authority of the Parliamentary Secretary to the Prime Minister, the Hon Christian Porter MP)

Schedule 3 - Health

Outline

Schedule 3 will make minor amendments to, and repeal provisions in one Act administered in the Health portfolio.

Notes on Clauses

Health and Other Services (Compensation) Act 1995

The Health and Other Services (Compensation) Act 1995 (the HOSC Act) requires the recovery of Commonwealth funds, including Medicare benefits, nursing home benefits, residential care and home care subsidies, paid to claimants for health and other services when they receive a judgment or settlement resulting from a compensation claim where a claimant has received $5,000 or more.

The objective of the HOSC Act is to ensure that successful claimants for compensation do not 'double dip'. Double dipping is where a claimant receives a Medicare or nursing home benefit, residential care or home care subsidy with respect to their compensable injuries or diseases prior to the judgment/settlement of a claim, and then receives compensation for their medical costs, and does not repay these benefits to the Commonwealth.

The recovery of funds under the HOSC Act is administered by the Department of Human Services (DHS). The HOSC Act sets out a number of steps by which compensation claimants notify DHS of any compensation they receive and quantify the quantum of funds to be recovered.

This schedule will amend the HOSC Act to reduce the regulatory burden on both compensation payers and claimants, and automate certain compensation recovery procedures for DHS. The amendments propose to remove the requirement for claimants to sign a statutory declaration when submitting a compensation claim and remove the requirement for both the compensation payer and claimant to sign a notification to Medicare of the settlement of the compensation claim.

Item 1: Subsection 18(1)

Item 1 adds a note to subsection 18(1) to state that sections 137.1 and 137.2 of the Criminal Code Act 1995 (the Criminal Code) apply when providing false or misleading information or documents.

Item 2: Subsection 18(2)

Item 2 amends subsection 18(2) of the HOSC Act to remove the requirement for claimants to submit a statutory declaration. The claimant is able to instead declare that the information provided is true and correct using existing forms required for this process, which will be updated to enable this provision.

Item 3: Subsection 23(6)

Item 3 amends subsection 23(6) of the HOSC Act to remove the requirement for a notice of judgment or settlement form to be signed by both the claimant and the compensation payer and instead requires only the compensation payer to sign. This removes a significant administrative burden for the compensation payer, also greatly reducing the risk of non-compliance to section 23 notification provisions of the HOSC Act. The claimant will also have a reduction in work effort as they will not have to find a suitable person to sign their statutory declaration.

Item 4: Subsection 23A(2)

Item 4 adds a note to subsection 23A(2) to state that sections 137.1 and 137.2 of the Criminal Code apply when providing false or misleading information or documents.

Item 5: Subsection 23B(3)

Item 5 adds a note to subsection 23B(3) to state that sections 137.1 and 137.2 of the Criminal Code apply when providing false or misleading information or documents.

Item 6: Subsection 23A(4)

Item 6 amends subsection 23A(4) of the HOSC Act to remove the requirement for claimants to submit a statutory declaration. The claimant is able to instead declare that the information provided is true and correct using existing forms required for this process, which will be updated to enable this provision.

Item 7: Application provisions

Item 7 specifies that the amendments made by Items 2, 3 and 6 of this schedule apply to statements or notices given on or after the commencement of the Item.