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Midwife Professional Indemnity (Commonwealth Contribution) Scheme Bill 2010

2008-2009-2010

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

As passed by both Houses

 

 

 

 

 

 

 

 

 

Midwife Professional Indemnity (Commonwealth Contribution) Scheme Bill 2010

 

No.      , 2010

 

 

 

 

 

A Bill for an Act to make provision in relation to professional indemnity cover for certain midwives, and for related purposes

   

   

   



Contents

Chapter 1—Introduction                                                                                        2

Part 1—Preliminary                                                                                                              2

Division 1—Preliminary                                                                                              2

1............ Short title............................................................................................. 2

2............ Commencement................................................................................... 2

Division 2—Objects and Guide                                                                                3

3............ Objects of this Act and the Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2009                3

4............ Guide to this Act................................................................................. 3

Division 3—Definitions                                                                                                 4

5............ Definitions.......................................................................................... 4

Division 4—Other general matters                                                                      10

6............ External Territories............................................................................ 10

7............ Rules may set termination dates........................................................ 10

Chapter 2—Midwife Professional Indemnity Commonwealth Contributions 11

Part 1—Guide to this Chapter                                                                                      11

8............ Guide to this Chapter........................................................................ 11

Part 2—Level 1 and Level 2 Commonwealth contributions                       12

Division 1—Preliminary                                                                                            12

9............ Guide to the Level 1 and Level 2 Commonwealth contribution provisions              12

10.......... Level 1 and Level 2 claim thresholds................................................ 14

Division 2—Certification                                                                                           15

11.......... When may the Medicare Australia CEO certify a claim as a qualifying claim?         15

12.......... Application for a qualifying claim certificate..................................... 18

13.......... Time by which an application must be decided................................. 19

14.......... Obligation to notify the Medicare Australia CEO if information is incorrect or incomplete     19

15.......... Revocation and variation of qualifying claim certificates................... 20

Division 3—Payability                                                                                                 22

Subdivision A—Level 1 payability                                                                       22

16.......... When is a Level 1 Commonwealth contribution payable?................. 22

17.......... Amount of Level 1 Commonwealth contribution.............................. 23

Subdivision B—Level 2 payability                                                                       24

18.......... When is a Level 2 Commonwealth contribution payable?................. 24

19.......... Qualifying liabilities.......................................................................... 26

20.......... Interaction with Level 1 Commonwealth contribution and run-off cover 27

21.......... Amount of Level 2 Commonwealth contribution.............................. 27

22.......... How Level 2 Commonwealth contribution is to be applied............... 28

23.......... Who is liable to repay an overpayment of Level 2 Commonwealth contribution?    29

Subdivision C—Payments that would have reduced the amount paid out under the contract of insurance             30

24.......... Amounts paid before payment of Level 2 Commonwealth contribution.. 30

25.......... Amounts paid after payment of Level 2 Commonwealth contribution 31

26.......... Obligation to notify the Medicare Australia CEO that amount has been paid           32

27.......... The Medicare Australia CEO to notify of amount of debt due.......... 33

28.......... Penalty imposed if an amount is repaid late....................................... 33

Part 3—Run-off cover Commonwealth contributions                                   36

Division 1—Introduction                                                                                           36

29.......... Guide to run-off cover Commonwealth contributions....................... 36

31.......... Eligible run-off claims....................................................................... 37

Division 2—Run-off cover Commonwealth contributions                      41

32.......... Circumstances in which run-off cover Commonwealth contributions are payable   41

33.......... Clarification of circumstances in which run-off cover Commonwealth contributions are payable            42

34.......... Exceptions......................................................................................... 42

35.......... Amount of run-off cover Commonwealth contribution..................... 42

Division 3—Payments that would have reduced the amount of run-off cover Commonwealth contribution                                                                                            44

36.......... Amounts paid before payment of run-off cover Commonwealth contribution         44

37.......... Amounts paid after payment of run-off cover Commonwealth contribution            45

38.......... Obligation to notify the Medicare Australia CEO that amount has been paid           46

39.......... The Medicare Australia CEO to notify of amount of debt due.......... 46

40.......... Penalty imposed if an amount is repaid late....................................... 47

Division 4—Effect of setting a run-off cover termination date            48

41.......... Commonwealth’s obligations if a run-off cover termination date is set 48

42.......... Affected eligible midwife.................................................................. 48

43.......... Payments in relation to affected eligible midwife.............................. 48

44.......... Total run-off cover credits................................................................. 49

45.......... Eligible insurers must provide information attributing run-off cover support payments           51

Division 5—Miscellaneous                                                                                        52

46.......... Medicare Australia CEO must be notified of a person ceasing to be covered by the midwife run-off cover provisions.......................................................................................................... 52

47.......... Invoices for midwife professional indemnity cover.......................... 52

48.......... Reports on run-off cover Commonwealth provisions....................... 53

49.......... Modifications and exclusions............................................................ 54

Part 4—Administration of provisions relating to Commonwealth contributions                56

Division 1—Guide                                                                                                          56

50.......... Guide to this Part.............................................................................. 56

Division 2—Apportionment certificates                                                            58

51.......... When may the Medicare Australia CEO issue an apportionment certificate in relation to a claim?           58

52.......... Medicare CEO must not issue an apportionment certificate in certain situations relating to court judgments or orders.......................................................................................................... 59

53.......... Applications for apportionment certificates....................................... 60

54.......... Time by which an application must be decided................................. 61

55.......... Obligation to notify the Medicare Australia CEO if information is incorrect or incomplete     61

56.......... Revocation and variation of apportionment certificates..................... 62

57.......... AAT review of decision to issue, revoke or vary.............................. 63

Division 3—Applications for, and payment of, Commonwealth contribution    64

58.......... Application for Level 1 Commonwealth contribution or a Commonwealth run-off cover contribution    64

59.......... Payment date for Level 1 Commonwealth contribution or a run-off cover Commonwealth contribution 64

60.......... Application for Level 2 Commonwealth contribution....................... 65

61.......... Payment date for Level 2 Commonwealth contribution..................... 66

Division 4—Information gathering and record keeping                          68

62.......... Medicare Australia CEO may request information............................ 68

63.......... Main record keeping obligations....................................................... 69

Division 5—Overpayments of the contributions                                           71

64.......... Recovery of overpayments................................................................ 71

65.......... Medicare Australia CEO may collect money from a person who owes money to a person      72

Division 6—Offences                                                                                                    75

66.......... Failing to give information................................................................ 75

67.......... Failing to notify................................................................................. 75

68.......... Failing to keep and retain records...................................................... 75

69.......... Failing to include required information in invoices........................... 76

Division 7—Finance                                                                                                      77

70.......... Appropriation.................................................................................... 77

Division 8—Reinsurance contracts                                                                      78

71.......... Commonwealth contributions disregarded for purposes of reinsurance contracts    78

Chapter 3—Run-off cover support payments                               79

Part 1—Introduction                                                                                                           79

72.......... Guide to this Chapter........................................................................ 79

Part 2—Payment of run-off cover support payment                                      81

73.......... Who is liable to pay the run-off cover support payment?.................. 81

74.......... Exemptions....................................................................................... 81

75.......... When run-off cover support payment must be paid.......................... 81

76.......... Late payment penalty......................................................................... 81

77.......... Method of paying certain amounts.................................................... 82

78.......... Refund of overpaid amounts............................................................. 82

79.......... Recovery of payment debt................................................................. 83

80.......... Medicare Australia CEO may collect money from a person who owes money to a person      83

81.......... Evidentiary certificates...................................................................... 85

Part 3—Information gathering provisions                                                            87

82.......... Medicare Australia CEO may request information............................ 87

83.......... Medicare Australia CEO must be notified of a change in circumstances etc.            87

84.......... Failing to give information................................................................ 88

85.......... Failing to notify................................................................................. 88

Chapter 4—Miscellaneous                                                                                   90

86.......... General administration of this Act and Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2009 .......................................................................................................... 90

87.......... Additional functions of the Medicare Australia CEO........................ 90

88.......... Officers to observe secrecy............................................................... 90

89.......... Act not to apply in relation to State insurance within a State............. 92

90.......... Minister may make Rules.................................................................. 92

91.......... Regulations....................................................................................... 93

 



A Bill for an Act to make provision in relation to professional indemnity cover for certain midwives, and for related purposes

The Parliament of Australia enacts:

Chapter 1 Introduction

Chapter 2 Midwife Professional Indemnity Commonwealth Contributions

Chapter 3 Run-off cover support payments

Chapter 4 Miscellaneous

   

   

86   General administration of this Act and Midwife Professional Indemnity (Run-off Cover Support Payment) Act 20 10

                   The Medicare Australia CEO has the general administration of this Act and the Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2010 .

87   Additional functions of the Medicare Australia CEO

                   In addition to the functions of the Medicare Australia CEO under the Medicare Australia Act 1973 , the Medicare Australia CEO has such additional functions as are conferred on the Medicare Australia CEO under this Act and the Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2010 .

88   Officers to observe secrecy

             (1)  In this section:

midwife professional indemnity legislation means:

                     (a)  this Act; or

                     (b)  the Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2010 .

officer means a person performing duties, or exercising powers or functions, under or in relation to, the midwife professional indemnity legislation.

person to whom this section applies means a person who is or was an officer.

protected document means a document that:

                     (a)  is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to the midwife professional indemnity legislation; and

                     (b)  contains information relating to a person’s affairs.

protected information means information that:

                     (a)  is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to the midwife professional indemnity legislation; and

                     (b)  relates to a person’s affairs.

             (2)  A person to whom this section applies commits an offence if:

                     (a)  the person:

                              (i)  makes a copy or other record of any protected information or of all or part of any protected document; or

                             (ii)  discloses any protected information to another person; or

                            (iii)  produces all or part of a protected document to another person; and

                     (b)  in doing so, is not acting in the performance of his or her duties, or in the exercise of his or her powers or functions, under the midwife professional indemnity legislation; and

                     (c)  in doing so, is not acting for the purpose of enabling a person to perform functions under:

                              (i)  the midwife professional indemnity legislation; or

                             (ii)  the Health Insurance Act 1973 ; or

                            (iii)  the Medicare Australia Act 1973 ; or

                            (iv)  the National Health Act 1953 ; or

                             (v)  the Private Health Insurance Act 2007 .

Penalty:  Imprisonment for 2 years.

             (3)  Despite subsection (2), the Secretary or the Medicare Australia CEO may divulge any protected information to an authority or person if:

                     (a)  the authority or person is an authority or person specified in the Rules for the purposes of this subsection; and

                     (b)  the information is information of a kind that may, in accordance with the regulations, be provided to the authority or person.

Note:          A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code ).

             (4)  If protected information is divulged to an authority or person under subsection (3):

                     (a)  the authority or person; and

                     (b)  any person or employee under the control of the authority or person;

is, in respect of that information, subject to the same rights, privileges, obligations and liabilities under subsection (2) as if he or she were a person performing duties under the midwife professional indemnity legislation and had acquired the information in the performance of those duties.

             (5)  This section does not prohibit the divulging or communicating to a person of information that relates to the person.

Note:          A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code ).

89   Act not to apply in relation to State insurance within a State

                   If, but for this section, a provision of this Act:

                     (a)  would have a particular application; and

                     (b)  by virtue of having that application, would be a law with respect to State insurance not extending beyond the limits of the State concerned;

the provision is not to have that application.

90   Minister may make Rules

             (1)  The Minister may, by legislative instrument, make Rules providing for matters:

                     (a)  required or permitted by this Act to be provided for in the Rules; or

                     (b)  necessary or convenient to be provided for in order to carry out or give effect to this Act.

             (2)  The Rules may make provision for or in relation to a matter by conferring a power on the Minister or on the Medicare Australia CEO.

Rules may incorporate material

             (3)  The Rules may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in any other instrument or writing:

                     (a)  as in force or existing at a particular time; or

                     (b)  as in force or existing from time to time.

             (4)  Subsection (3) has effect despite subsection 14(2) of the Legislative Instruments Act 2003 .

91   Regulations

             (1)  The Governor-General may make regulations prescribing matters:

                     (a)  required or permitted by this Act to be prescribed; or

                     (b)  necessary or convenient to be prescribed for carrying out or giving effect to this Act;

and, in particular, prescribing penalties, not exceeding 10 penalty units, for offences against the regulations.

             (2)  Without limiting subsection (1), the regulations may make provision for the qualifications of actuaries preparing reports for the purposes of this Act.

(138/09)