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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2014
HEALTH AND OTHER SERVICES (COMPENSATION) CARE CHARGES
(AMENDMENT) BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Kevin Andrews MP)
AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2014
HEALTH AND OTHER SERVICES (COMPENSATION) CARE CHARGES
(AMENDMENT) BILL 2014
OUTLINE
Aged Care and Other Legislation Amendment Bill 2014
Reprioritising the Aged Care Workforce Supplement
This Bill makes consequential amendments to the Aged Care Act 1997 to reflect the
implementation of the 2014 Budget measure, Reprioritising the Aged Care
Workforce Supplement, under which residential care, home care and flexible care
providers of aged care services receive an increase in basic subsidy.
As committed during the election campaign, the Budget measure is investing in
Australia's aged care workforce by putting back into the general pool of aged care
funding the substantial amounts previously allocated to the workforce compact.
This initiative was implemented from 1 July 2014 through two legislative instruments
addressing the subsidy arrangements (the Aged Care (Subsidy, Fees and
Payments) Determination 2014 and the Aged Care (Transitional Provisions)
(Subsidy and Other Measures) Determination 2014).
The consequential amendments in this Bill remove the workforce supplement from
the list of primary supplements that may be provided by the Subsidy Principles under
the Act.
My Aged Care
The Bill amends the Healthcare Identifiers Act 2010 to support the implementation
from 1 January 2015 of stage 2 of the Aged Care Gateway, which is a centralised
online information portal known as My Aged Care.
Stage 2 of My Aged Care is a key component of the recent aged care changes,
and will include the capacity to create and maintain a uniquely identifiable aged care
client record, allowing a centralised view of aged care services provided to a client.
A client's identity created during the registration process will be authenticated, using
Medicare's healthcare identifier, to protect both client privacy and the integrity of
Commonwealth systems.
The amendments in this Bill will allow the collection, use and disclosure of the
relevant data for this limited purpose.
Other amendments
The Bill also makes minor clarifying and technical amendments to aged care and
health-related legislation, consistent with intended policy, arising from the recent
changes to aged care.
1
Aged Care and Other Legislation Amendment Bill 2014, and Health and Other
Services (Compensation) Care Charges (Amendment) Bill 2014
The two Bills together amend the Health and Other Services (Compensation)
Act 1995 and the Health and Other Services (Compensation) Care Charges
Act 1995 to overcome a current impediment to recovery of past care costs for home
care provided to a care recipient who receives a compensation payment.
This anomaly is removed by bringing the capacity to recover past care costs for
home care into line with the existing arrangements for residential care.
The amendments remove the current inequity between the two types of care,
overcome the potential for delayed entry into more appropriate residential care until
compensation payments are settled, and minimise financial loss to the
Commonwealth.
Those amendments that expand the existing charges on compensation for the
purpose outlined above must be introduced in a separate Bill to comply with
section 55 of the Constitution.
Financial impact statement
The Reprioritising the Aged Care Workforce Supplement Budget measure assists
the Government to meet its election commitment of returning $1.1 billion in Aged
Care Workforce Supplement funding to the sector between 2013-14 and 2016-17,
with a further $0.4 billion in 2017-18.
The amendments supporting the My Aged Care measure, and the minor clarifying
and technical amendments, have a neutral cost impact.
The amendments relating to recovery of past care costs for home care provided to a
care recipient who receives a compensation payment will provide savings to the
Commonwealth in the order of $0.5 million to $1.0 million per year.
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
The statements of compatibility with human rights appear at the end of this
explanatory memorandum.
2
AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2014
HEALTH AND OTHER SERVICES (COMPENSATION) CARE CHARGES
(AMENDMENT) BILL 2014
Abbreviations used in this explanatory memorandum
Aged Care Act means the Aged Care Act 1997
Aged Care Transitional Provisions Act means the Aged Care (Transitional
Provisions) Act 1997
Healthcare Identifiers Act means the Healthcare Identifiers Act 2010
Health and Other Services Compensation Acts means the Health and
Other Services (Compensation) Act 1995 and the Health and Other Services
(Compensation) Care Charges Act 1995
1
AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2014
NOTES ON CLAUSES
Clause 1 sets out how the new Act is to be cited, that is, as the Aged Care and
Other Legislation Amendment Act 2014.
Clause 2 provides a table setting out the commencement dates of the various
sections in, and Schedules to, the new Act.
Clause 3 provides that the legislation that is specified in a Schedule is amended or
repealed as set out in that Schedule.
2
Schedule 1 - Amendments relating to aged care
Summary
This Schedule makes consequential amendments to the Aged Care Act to reflect the
implementation of the 2014 Budget measure, Reprioritising the Aged Care
Workforce Supplement, under which residential care, home care and flexible care
providers of aged care services receive an increase in basic subsidy.
As committed during the election campaign, the Budget measure is investing in
Australia's aged care workforce by putting back into the general pool of aged care
funding the substantial amounts previously allocated to the workforce compact:
$1.1 billion between 2013-14 and 2016-17, with a further $0.4 billion in 2017-18.
This initiative was implemented from 1 July 2014 through two legislative instruments
addressing the subsidy arrangements (the Aged Care (Subsidy, Fees and
Payments) Determination 2014 and the Aged Care (Transitional Provisions)
(Subsidy and Other Measures) Determination 2014).
The consequential amendments in this Schedule remove the workforce supplement
from the list of primary supplements that may be provided by the Subsidy Principles
under the Act.
The Schedule also makes minor clarifying and technical amendments to aged care
and health-related legislation, consistent with intended policy, arising from the recent
changes to aged care.
Background
Since 1 July 2014, the Aged Care Act has described the subsidy and fee
arrangements for care recipients who enter care on or after 1 July 2014. Rather than
the various arrangements regarding subsidy and fees for continuing care recipients
(being care recipients who entered care before 1 July 2014) also being included in
the Aged Care Act, these arrangements are set out in the Aged Care Transitional
Provisions Act. The Aged Care Transitional Provisions Act only describes the
arrangements for continuing care recipients that are different to the arrangements for
care recipients entering care on or after 1 July 2014.
The amendments made by this Schedule commence on the day after Royal Assent.
Explanation of the changes
Amendments to the Aged Care Act
Item 1: Subparagraphs 44-5(1)(a)(v) and (vi)
Section 44-5 of the Aged Care Act outlines the primary supplements payable for care
recipients that approved providers may claim for residential care. This item repeals:
3
subparagraph 44-5(1)(a)(v) - the veterans' supplement (because this
supplement is in fact paid under section 44-27 of the Aged Care Act, rather
than as a primary supplement under section 44-5 of the Aged Care Act); and
subparagraph 44-5(1)(a)(vi) - the workforce supplement (to reflect the
2014 Budget measure, Reprioritising the Aged Care Workforce Supplement,
as described above).
Item 2: Subparagraph 48-3(1)(a)(v)
Section 48-3 of the Aged Care Act specifies the primary supplements that may be
payable in respect of eligible home care recipients. This item repeals
subparagraph 48-3 (1)(a)(v), to reflect the 2014 Budget measure, Reprioritising the
Aged Care Workforce Supplement, as described above.
Item 3: After paragraph 56-1(g)
Section 56-1 clarifies the ongoing responsibilities of an approved provider in relation
to a care recipient to whom it provides, or is to provide, residential care. This item
inserts a new paragraph 56-1(ga), to make it an approved provider's responsibility to
comply with the requirements of Part 3A.3 of the Act, being the requirements for the
management of refundable deposits, accommodation bonds and entry contributions.
This applies both for continuing care recipients and for those who are not continuing
care recipients.
Item 4: Subparagraph 56-2(c)(ii)
Section 56-2 outlines the responsibilities of an approved provider in relation to a care
recipient to whom it provides, or is to provide, home care. This item corrects a
typographical error by amending subparagraph 56-2(c)(ii) to remove the words
`resident fees' and substitute `home care fees', to reflect the fact that the Division
deals with responsibilities of approved providers in relation to home care recipients.
Item 5: After paragraph 56-3(g)
Section 56-3 clarifies the ongoing responsibilities of an approved provider in relation
to a care recipient to whom it provides, or is to provide, flexible care. This item
inserts a new paragraph 56-3(ga), to make it an approved provider's responsibility to
comply with the requirements of Part 3A.3 of the Act, being the requirements for the
management of refundable deposits, accommodation bonds and entry contributions.
This applies both for continuing care recipients and for those who are not continuing
care recipients.
4
Item 6: Subsection 59-1(1)
Item 7: Subsection 59-1(3) (note)
Section 59-1 outlines the requirements for resident agreements. These items
remove references to the term `residential care agreement' and substitute
`resident agreement'. The term `residential care agreement' does not otherwise
appear in the Aged Care Act.
Item 8: Paragraph 63-1(1)(l)
Subsection 63-1(1) of the Aged Care Act outlines the responsibilities of approved
providers in relation to accountability for the aged care provided by the approved
provider through an aged care service. The new Australian Aged Care Quality
Agency replaced the former accreditation body on 1 January 2014. This item
removes references to the previous `accreditation bodies' and substitutes `the CEO
of the Quality Agency'.
Item 9: Paragraph 66-1(ia)
Section 66-1 outlines the sanctions the Secretary may impose on an approved
provider that has not complied with its responsibilities. This item corrects a
typographical error by amending paragraph 66-1(ia) to remove the words
`accommodating contributions' and substitute `accommodation contributions'.
Item 10: Subsection 94A-1(3)
Subsection 94A-1(3) of the Aged Care Act provides for transitional provisions to be
set out in the Complaints Principles for investigations being dealt with under the
Investigation Principles. Currently, there are no such transitional arrangements set
out in the Complaints Principles.
Subsection 94A-1(3) was in place before the recent changes to aged care, but it has
now been identified that there is no need to set out transitional provisions relating to
investigations commenced under the Investigation Principles. Accordingly, this item
repeals the subsection.
Item 11: Clause 1 of Schedule 1 (definition of phased resident)
Phased residents are a time-limited group of residents, and the relevant period in
relation to a phased resident finished on 19 March 2013. This item removes the only
remaining residual reference to phased residents from the Aged Care Act.
5
Amendments to the Aged Care Transitional Provisions Act
Item 12: Subsection 44-26(1)
Item 13: Subsections 44-26(3), (4) and (5)
Item 17: Section 44-32
Phased residents are a time-limited group of residents, and the relevant period in
relation to a phased resident finished on 19 March 2013. These items remove all
references and provisions regarding phased residents from Chapter 3 of the Aged
Care Transitional Provisions Act.
Item 14: Section 44-27
Item 15: Paragraph 44-27(d)
Item 16: At the end of section 44-27
Subsections 44-27(2) and 44-27(3) of the Aged Care Act allow for the determination
and payment of other supplements for care recipients in care on, or after,
1 July 2014. The equivalent subsections were inadvertently excluded from the Aged
Care Transitional Provisions Act. These items add the equivalent provisions to allow
for the determination of and payment of other supplements for care recipients in care
before 1 July 2014. It should be noted that, in the Aged Care Transitional Provisions
Act, subsection 44-27(2) will refer to the Aged Care (Transitional Provisions)
Principles instead of the Subsidy Principles, as referred to in the Aged Care Act.
Item 18: Section 58-2 (resident fee calculator, step 1)
Section 58-2 is used to calculate the maximum daily amount of resident fees payable
by a care recipient of residential care. This item removes references to phased
residents from the residential fee calculator (since phased residents are a
time-limited group of residents, and the relevant period in relation to a phased
resident finished on 19 March 2013).
Item 19: Paragraph 58-3(2)(b)
Item 20: Paragraph 58-3(2)(c)
Item 21: Subsection 58-3(2)
Section 58-3 specifies the general rule for calculating the standard resident
contribution for a care recipient of residential care. These items remove references
to a phased resident from the exceptions to the general rule (since phased residents
are a time-limited group of residents, and the relevant period in relation to a phased
resident finished on 19 March 2013).
Item 22: Section 58-4
Section 58-4 specifies how the standard resident contribution for a care recipient of
residential care is calculated in respect of phased residents. This item repeals this
section (since phased residents are a time-limited group of residents, and the
relevant period in relation to a phased resident finished on 19 March 2013).
6
Item 23: Clause 1 of Schedule 1 (definition of phased resident)
Phased residents are a time-limited group of residents, and the relevant period in
relation to a phased resident finished on 19 March 2013. This item removes the
definition of phased residents in Schedule 1.
Item 24: Clause 1 of Schedule 1 (definition of standard resident contribution)
This item amends the definition of standard resident contribution, to take into
account the removal of references to phased resident in the Aged Care Transitional
Provisions Act (see above).
7
Schedule 2 - Amendments relating to home care costs and
compensation payments
Summary
This Schedule, together with Schedule 1 to the Health and Other Services
(Compensation) Care Charges (Amendment) Bill 2014, amends the Health and
Other Services Compensation Acts to overcome a current impediment to recovery of
past care costs for home care provided to a care recipient who receives a
compensation payment.
This anomaly is removed by bringing the capacity to recover past care costs for
home care into line with the existing arrangements for residential care.
The amendments remove the current inequity between the two types of care,
overcome the potential for delayed entry into more appropriate residential care until
compensation payments are settled, and minimise financial loss to the
Commonwealth.
Those amendments that expand the existing charges on compensation for the
purpose outlined above must be introduced in a separate Bill (the Health and Other
Services (Compensation) Care Charges (Amendment) Bill 2014) to comply with
section 55 of the Constitution.
Background
From 1 July 2014, the Aged Care Act enabled the reduction of home care subsidies
for care recipients who are in receipt of a compensation payment (workers'
compensation, common law settlements or a statutory scheme entitlement).
However, the compensation payment reduction scheme does not currently allow for
the recovery of past home care costs - that is, home care costs paid by the
Commonwealth before the compensation payment was received, but for which
another party is liable. This is inconsistent with the way in which compensation
recoveries are administered in residential aged care.
Recovery of past residential aged care costs is dealt with under the Health and Other
Services Compensation Acts. For consistency across residential care and home
care, the Health and Other Services Compensation Acts are being amended to
extend the Commonwealth's capacity to recover past care costs in relation to home
care.
The amendments made by this Schedule commence on 1 July 2015.
Explanation of the changes
Part 1 - Amendments
Amendments to the Health and Other Services (Compensation) Act 1995
Existing provisions dealing with the reimbursement or recovery of past residential
care costs are amended to refer also to home care.
8
Item 1: Subsection 3(1) (at the end of the definition of eligible benefit)
This item adds reference to home care to the definition of eligible benefit.
Item 2: Subsection 3(1)
This item inserts definitions of home care and home care subsidy, to have the
same meaning as in the Aged Care Act and the Aged Care Transitional
Provisions Act.
Item 3: Subsection 3(1) (definition of residential care)
Repeals and substitutes the definition of residential care, so it has the same meaning
as in the Aged Care Act and the Aged Care Transitional Provisions Act.
Item 4: Division 2 of Part 2 (heading)
Item 5: Section 9 (heading)
Item 6: Paragraph 9(1)(b)
Item 7: After subsection 9(2A)
Item 8: Paragraph 9(3)(a)
Item 9: Paragraph 9(3)(aa)
Item 10: Paragraph 9(3)(b)
Item 11: Subsection 9(3)
Section 9 sets out the circumstances in which the person who is entitled to a
reimbursement is liable to pay the Commonwealth, with the amount being equal to
the benefit or subsidy, before a compensation claim has been paid. These items
extend this liability to home care, and set out the circumstances in which this may
occur.
Item 12: Section 10 (heading)
Item 13: Paragraph 10(1)(b)
Item 14: Paragraph 10(1)(ba)
Item 15: Paragraph 10(1)(c)
Item 16: Subsection 10(1)
Item 17: Paragraph 10(3)(a)
Section 10 sets out the circumstances in which the Commonwealth can recover past
care subsidies and the amount recoverable according to the terms of the judgment
or settlement. These items extend the subsidies recoverable to past home care
subsidies, and set out the circumstances in which this may occur.
Item 18: Paragraph 17(1)(b)
Section 17 sets out the circumstances in which the Chief Executive Medicare may
issue a notice requiring a person to provide details of care they have received in
respect of an injury the person claims to have suffered. This item extends the
circumstances in which this may occur to include details of care received in relation
to home care.
9
Item 19: Subparagraph 21(7)(b)(ii)
Section 21 deals with the powers of the Chief Executive Medicare to issue a notice
to a person in respect of the amounts they are liable to pay to the Commonwealth,
where they are in receipt of a corresponding compensation payment. This item
extends the circumstances in which this may occur to include expenses in respect of
home care.
Item 20: Paragraph 23(5)(b)
Item 21: Paragraphs 23(7)(b) and (c)
Section 23 sets out the requirement for a person to provide notice of a judgment or
settlement that has been made in respect of a claim to the Chief Executive Medicare.
This item extends the circumstances in which this may occur to include claims in
respect of home care.
Item 22: Subsection 23B(5)
Section 23B deals with the powers of the Chief Executive Medicare, if the Chief
Executive Medicare is not satisfied with a statement that has been given under
section 18, 23A or 23B. This item extends the circumstances in which the Chief
Executive Medicare may exercise these powers, to include statements given to the
Chief Executive in relation to home care.
Item 23: Subparagraph 24(9)(b)(ii)
Section 24 sets out the circumstances in which the Chief Executive Medicare must
notify an insurer or compensation payer, in writing, the matters to be set out in the
notice and the requirement to give the compensable person a copy of the notice.
This item extends the circumstances in which this may occur, to include home care
compensation.
Part 2 - Application of amendments
This Part sets out how the amendments introduced in this Schedule will be applied to
care recipients.
10
Schedule 3 - Amendments relating to healthcare identifiers
Summary
This Schedule amends the Healthcare Identifiers Act to support the implementation
from 1 January 2015 of stage 2 of the Aged Care Gateway, which is a centralised
online information portal known as My Aged Care.
Stage 2 of My Aged Care is a key component of the recent aged care changes,
and will include the capacity to create and maintain a uniquely identifiable aged care
client record, allowing a centralised view of aged care services provided to a client.
A client's identity created during the registration process will be authenticated, using
Medicare's healthcare identifier, to protect both client privacy and the integrity of
Commonwealth systems.
The amendments in this Schedule will allow the collection, use and disclosure of the
relevant data for this limited purpose.
Background
Stage 1 of the Aged Care Gateway was implemented in July 2013 and stage 2 will
be implemented from early 2015. A key component of stage 2 will be the capacity to
create and maintain a uniquely identifiable aged care client record, allowing a
centralised and holistic view of aged care services provided to a client. This includes
outcomes of a client's assessment, a summary of the services to be provided and a
history of interactions encountered by the client across the aged care system.
When a client accesses the Aged Care Gateway and their identity is verified using
the Department of Human Services' Medicare Proof of Record Ownership service,
these amendments will allow their aged care client record to be associated with their
individual healthcare identifier. This will enable unique identification of the individual,
which is critical in ensuring integrity and security of the client record. The healthcare
identifier will only be used `behind the scenes' in the Gateway, and will not be visible
to any person using the Gateway.
The use of a person's healthcare identifier will enable future linkages with the
personally controlled electronic health record (eHealth record) system.
Section 26 of the Healthcare Identifiers Act prohibits the use or disclosure of
healthcare identifiers, except for a purpose authorised under the Healthcare
Identifiers Act or another law. The collection, use or disclosure of a consumer's
healthcare identifier in relation to the Aged Care Gateway is not currently authorised
by the Healthcare Identifiers Act or another law.
The original concept for the scope of the eHealth record intended to include aged
care, to support the interface between the health and aged care sectors. However,
the establishment of the eHealth record predated the development of the Aged Care
Gateway. The use of the healthcare identifier in the Gateway will be consistent with
the scope of the eHealth record.
11
In assisting aged care clients to receive appropriate health and aged care services,
the Gateway is adopting standards and processes used in the national eHealth
record system. The intention is that, with appropriate consent, aged care clients
registered in the Aged Care Gateway system (who are also registered in the national
eHealth record system) will be able to make relevant components of their aged care
client record (including assessment outcomes and a summary of their services plan)
accessible to healthcare professionals (also participating in the eHealth system).
Establishing the key building blocks such as adoption of the healthcare identifier in
the Aged Care Gateway system is an important step to enabling access to
appropriate information.
Specifically, this Schedule amends the Healthcare Identifiers Act to authorise:
the service operator (defined in the Healthcare Identifiers Act as the Chief
Executive Medicare) to collect a consumer's identifying information from the
Aged Care Gateway and disclose a consumer's healthcare identifier
(as defined in the Healthcare Identifiers Act) to the Aged Care Gateway for the
purpose of creating and/or associating the healthcare identifier with the
consumer's aged care client record;
an identified healthcare provider (as defined in the Healthcare Identifiers
Act) to disclose a consumer's identifying information and healthcare identifier
to the Aged Care Gateway for the purpose of creating and/or associating the
healthcare identifier with the consumer's aged care client record; and
the Aged Care Department (in practice, the Aged Care Gateway that will be
operated by the Department of Social Services) to disclose a consumer's
identifying information to the service operator, and collect and use a
consumer's healthcare identifier from the service operator, a healthcare
provider or the consumer, for the purpose of creating and/or associating the
healthcare identifier with the consumer's aged care client record.
The amendments made by this Schedule commence on the day after Royal Assent.
Explanation of the changes
Amendments to the Healthcare Identifiers Act
Item 1: Section 5
This item inserts into section 5 several new definitions relating to this measure -
aged care, Aged Care Department, Aged Care Minister and aged care purpose.
Item 2: After section 12
Item 3: After section 19C
Item 4: After section 23
These items insert into the Healthcare Identifiers Act, respectively, new section 12A
(Disclosure for an aged care purpose) new section 19D (Disclosure to Aged Care
Department) and new section 23A (Disclosure to Aged Care Department).
12
These new provisions allow identified healthcare providers, the Aged Care
Department (which is, under the current Administrative Arrangements Order,
the Department of Social Services) and the service operator to share identifying
information, including the healthcare identifier, for an aged care purpose.
An aged care purpose is to enable the Aged Care Department to create and
maintain a record about aged care provided to a person by an approved provider,
or to verify the identity of a person who is receiving, or is to receive, aged care.
Therefore, the amendments will allow an aged care client's identifying information to
be used to retrieve their healthcare identifier, which the Aged Care Gateway can use
to ensure only one aged care record is made and maintained for each individual,
and will also allow, in the future, information within the aged care client records to be
linked with the eHealth record.
13
HEALTH AND OTHER SERVICES (COMPENSATION) CARE CHARGES
(AMENDMENT) BILL 2014
NOTES ON CLAUSES
Clause 1 sets out how the new Act is to be cited, that is, as the Health and Other
Services (Compensation) Care Charges (Amendment) Act 2014.
Clause 2 provides a table setting out the commencement dates of the various
sections in, and the Schedule to, the new Act.
Clause 3 provides that the legislation that is specified in a Schedule is amended or
repealed as set out in that Schedule.
14
Schedule 1 - Amendments
Summary
This Schedule, together with Schedule 2 to the Aged Care and Other Legislation
Amendment Bill 2014, amends the Health and Other Services Compensation Acts to
overcome a current impediment to recovery of past care costs for home care
provided to a care recipient who receives a compensation payment.
This anomaly is removed by bringing the capacity to recover past care costs for
home care into line with the existing arrangements for residential care.
The amendments remove the current inequity between the two types of care,
overcome the potential for delayed entry into more appropriate residential care until
compensation payments are settled, and minimise financial loss to the
Commonwealth.
Those amendments that expand the existing charges on compensation for the
purpose outlined above must be introduced in this separate Bill to comply with
section 55 of the Constitution.
Background
From 1 July 2014, the Aged Care Act enabled the reduction of home care subsidies
for care recipients who are in receipt of a compensation payment (workers'
compensation, common law settlements or a statutory scheme entitlement).
However, the compensation payment reduction scheme does not currently allow for
the recovery of past home care costs - that is, home care costs paid by the
Commonwealth before the compensation payment was received, but for which
another party is liable. This is inconsistent with the way in which compensation
recoveries are administered in residential aged care.
Recovery of past residential aged care costs is dealt with under the Health and Other
Services Compensation Acts. For consistency across residential care and home
care, the Health and Other Services Compensation Acts are being amended to
extend the Commonwealth's capacity to recover past care costs in relation to home
care.
This Schedule introduces the amendments to sections 7 and 8 of the Health and
Other Services (Compensation) Care Charges Act 1995. These amendments
expand the existing charges on compensation for the purpose outlined above.
The amendments made by this Schedule commence on 1 July 2015.
15
Explanation of the changes
Amendments to the Health and Other Services (Compensation) Care Charges
Act 1995
Item 1: Section 7 (heading)
Item 2: Paragraph 7(1)(b)
Item 3: Paragraph 7(2)(a)
Item 4: Paragraph 7(2)(aa)
Item 5: Paragraph 7(2)(b)
Item 6: Subsection 7(2)
Section 7 is headed `Charge on compensation in respect of reimbursements for
nursing home care or residential care'. This sets out the circumstances in which a
`compensable person', who is entitled (under a reimbursement arrangement)
to compensation by way of reimbursement of expenses incurred in respect of
nursing home care or residential care provided to the person, is liable to pay the
Commonwealth a charge of an amount equal to the nursing home benefit or
residential care subsidy that has been paid in respect of that care.
These items extend this liability in relation to home care, and set out the
circumstances in which this may occur.
Item 7: Section 8 (heading)
Item 8: Paragraph 8(1)(b)
Item 9: Paragraph 8(1)(ba)
Item 10: Paragraph 8(1)(c)
Item 11: Subsection 8(1)
Item 12: Paragraph 8(3)(a)
Similarly, section 8 (headed `Charge on compensation in respect of past payments of
nursing home benefit or residential care subsidy') sets out the circumstances in
which a charge is payable to the Commonwealth when an amount of compensation
is fixed (under a judgment or settlement) for an injury to a compensable person
where nursing home benefit or residential care subsidy has already been paid.
These items extend this liability in relation to home care, and set out the
circumstances in which this may occur.
Item 13: Application of amendments
The new provisions relating to the recovery of past home care costs apply only if the
relevant judgment or settlement, or reimbursement arrangement, was made on or
after the day on which these provisions commence. However, the relevant injury or
payment of home care subsidy may have occurred before that day.
16
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
AGED CARE AND OTHER LEGISLATION AMENDMENT BILL 2014
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
Reprioritising the Aged Care Workforce Supplement
Schedule 1 to this Bill makes consequential amendments to the Aged Care Act 1997
to reflect the implementation of the 2014 Budget measure, Reprioritising the Aged
Care Workforce Supplement, under which residential care, home care and flexible
care providers of aged care services receive an increase in basic subsidy.
As committed during the election campaign, the Budget measure is investing in
Australia's aged care workforce by putting back into the general pool of aged care
funding the substantial amounts previously allocated to the workforce compact.
This initiative was implemented from 1 July 2014 through two legislative instruments
addressing the subsidy arrangements (the Aged Care (Subsidy, Fees and
Payments) Determination 2014 and the Aged Care (Transitional Provisions)
(Subsidy and Other Measures) Determination 2014).
The consequential amendments in this Schedule remove the workforce supplement
from the list of primary supplements that may be provided by the Subsidy Principles
under the Act.
Other amendments
Schedule 1 also makes minor clarifying and technical amendments to aged care and
health-related legislation, consistent with intended policy, arising from the recent
changes to aged care.
Recovery of past home care costs
Schedule 2 to this Bill, together with Schedule 1 to the Health and Other Services
(Compensation) Care Charges (Amendment) Bill 2014, amends the Health and
Other Services Compensation Acts to overcome a current impediment to recovery of
past care costs for home care provided to a care recipient who receives a
compensation payment.
1
This anomaly is removed by bringing the capacity to recover past care costs for
home care into line with the existing arrangements for residential care.
The amendments remove the current inequity between the two types of care,
overcome the potential for delayed entry into more appropriate residential care until
compensation payments are settled, and minimise financial loss to the
Commonwealth.
Those amendments that expand the existing charges on compensation for the
purpose outlined above must be introduced in a separate Bill (the Health and Other
Services (Compensation) Care Charges (Amendment) Bill 2014) to comply with
section 55 of the Constitution.
My Aged Care
Schedule 3 to this Bill amends the Healthcare Identifiers Act 2010 to support the
implementation from 1 January 2015 of stage 2 of the Aged Care Gateway, which is
a centralised online information portal known as My Aged Care.
Stage 2 of My Aged Care is a key component of the recent aged care changes,
and will include the capacity to create and maintain a uniquely identifiable aged care
client record, allowing a centralised view of aged care services provided to a client.
A client's identity created during the registration process will be authenticated, using
Medicare's healthcare identifier, to protect both client privacy and the integrity of
Commonwealth systems.
The amendments in this Schedule will allow the collection, use and disclosure of the
relevant data for this limited purpose.
Human rights implications
This Bill is compatible with the right to an adequate standard of living and the right to
the enjoyment of the highest attainable standard of physical and mental health as
contained in article 11(1) and article 12(1) of the International Covenant on
Economic, Social and Cultural Rights, and article 25 and article 28 of the Convention
on the Rights of Persons with Disabilities.
Reprioritising the Aged Care Workforce Supplement
The reprioritisation of the workforce supplement has already been implemented
through existing legislative instruments. This Bill makes consequential amendments
to the Aged Care Act 1997 that have a neutral impact on human rights.
Other amendments
The minor and technical amendments have a neutral impact on human rights.
Recovery of past home care costs
This Bill allows the Commonwealth to recover past care costs for home care
provided in settlement which removes the current inequity between the home care
and residential care arrangements.
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My Aged Care
The implementation from early 2015 of stage 2 of the Aged Care Gateway will
improve consumer accessibility to aged care-related information and services,
and simplify consumers' journey through aged care. The improved client
understanding as to the availability of alternative options and the creation of a unique
aged care client record will have positive impacts on the standard of care received
by care recipients.
Conclusion
This Bill is compatible with human rights as it promotes the human right to an
adequate standard of living and the highest attainable standard of physical and
mental health.
Minister for Social Services, the Hon Kevin Andrews MP
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
HEALTH AND OTHER SERVICES (COMPENSATION) CARE CHARGES
(AMENDMENT) BILL 2014
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
This Bill, together with Schedule 2 to the Aged Care and Other Legislation
Amendment Bill 2014, amends the Health and Other Services Compensation Acts to
overcome a current impediment to recovery of past care costs for home care
provided to a care recipient who receives a compensation payment.
This anomaly is removed by bringing the capacity to recover past care costs for
home care into line with the existing arrangements for residential care.
The amendments remove the current inequity between the two types of care,
overcome the potential for delayed entry into more appropriate residential care until
compensation payments are settled, and minimise financial loss to the
Commonwealth.
Those amendments that expand the existing charges on compensation for the
purpose outlined above must be introduced in this separate Bill to comply with
section 55 of the Constitution.
Human rights implications
This Bill is compatible with the right to an adequate standard of living and the right to
the enjoyment of the highest attainable standard of physical and mental health as
contained in article 11(1) and article 12(1) of the International Covenant on
Economic, Social and Cultural Rights, and article 25 and article 28 of the Convention
on the Rights of Persons with Disabilities.
This Bill allows the Commonwealth to recover past care costs for home care
provided in settlement. This will remove the current inequity between the home care
and residential care arrangements.
Conclusion
This Bill is compatible with human rights as it promotes the human right to an
adequate standard of living and the highest attainable standard of physical and
mental health.
Minister for Social Services, the Hon Kevin Andrews MP
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