Commonwealth Numbered Regulations - Explanatory Statements

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HEALTH INSURANCE COMMISSION REGULATIONS (AMENDMENT) 1991 NO. 443

STATUTORY RULES 1991 No. 443

Issued by the Authority of the Minister for Health, Housing and Community Services

Health Insurance Commission Act 1973

Health Insurance Commission Regulations (Amendment)

Subsection 38(1) of the Act provides that the Health Insurance Commission shall not, except where approved by the Minister, enter into contracts involving an amount exceeding $250,000, or if a higher amount is prescribed, that higher amount. The Health Insurance Commission Regulations (regulation 4B) were amended in 1986 to prescribe a higher amount of $1,000,000.

The current limit of $1,000,000 was no longer considered appropriate given inflationary factors over the past five years and the extension of the functions of the Health Insurance Commission. The need to seek ministerial approval to enter into transactions exceeding $1,000,000 acted as an impediment to the Health Insurance Commission acting quickly in response to investment opportunities or entering into contractual arrangements at the time of concluding negotiations. In relation to the Commission's Medibank Private function, other private health insurers are not faced with the same impediment.

The amendment allows the Health Insurance Commission to negotiate contracts of up to $10,000,000 without ministerial approval.