Health Insurance Amendment (Professional Services Review Scheme No. 2)

Current status

This bill became law on Nov 24th, 2023.

Policy area

Health, care & disability

What does this bill do?

MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. oversight can keep going after a doctor or other health practitioner stops being registered, so they can still face bans or referrals over past billing or treatment concerns.

Why was it introduced?

Issues and ambiguities in MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect.’s Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme left gaps when practitioners were unregistered, worked across fields, missed hearings on medical grounds, or delayed reviews through court action or leaving Australia. The bill closes those gaps by clarifying who can be reviewed, who can sit on review committees, what medical proof is required, and when review deadlines can be extended.

Broader context

MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. already had a Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme to investigate inappropriate practiceThe legal test for conduct that the Medicare review system treats as unacceptable and can punish or refer for further action., and Parliament had made an earlier round of 2023 reforms, but gaps still remained when practitioners lost registration, worked across different fields, missed hearings on medical grounds or delayed matters through court action or overseas travel. The bill responded by tightening those weak points so MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. oversight could keep pursuing past conduct and use better-matched review panels, and it became law in November 2023 as part of a broader push to protect public health spending.

Key criticism

The main criticism was not about the bill’s MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. integrity goals but about how the government handled the reform, with concerns that consultation on the changes was too limited. That process concern was raised by Coalition speakers Sussan Ley and Anne Ruston, but it did not amount to opposition to the bill itself.

Who supported it?

Ged Kearney MP introduced this bill. It passed on the voices.

Introduced in House 19 Oct 2023
Passed House 15 Nov 2023
Passed Senate 17 Nov 2023
Became law 24 Nov 2023

Did it become law?

Yes

Became law 24 Nov 2023

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

36 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. oversight can keep going after a doctor or other health practitioner stops being registered, so they can still face bans or referrals over past billing or treatment concerns.

  2. Reviews of suspected inappropriate MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. practice must be judged against every kind of medical role the practitioner was working in when they provided the services.

  3. Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. committees must be made up of doctors with experience in the actual field or fields the services were provided in, not just the practitioner's formal qualifications.

  4. A practitioner who says illness stops them attending a Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. hearing must provide a proper medical certificate, and the committeeA panel of medical peers that hears some reviews and decides whether the practitioner's conduct counted as inappropriate practice. can ask for more information or another medical examination.

  5. The Director of the Professional Services ReviewThe person who runs the review process and can extend deadlines, start reviews, and manage committee action under the scheme. can extend the usual 12-month review deadline when court action interrupts the matter or when the practitioner leaves Australia.

Show source excerpts
  1. Items 1 to 8 add new subsections to sections 92, 106KC, 106KD, 106L, 106U, 106XA, 106XB and 106ZPR of the Health Insurance Act to clarify that references to a practitioner in these sections are intended to include a reference to a person who has been but is not currently a practitioner. Similar phrases such as ‘profession of which the practitioner…is a member’ in section 106KC and ‘person who renders professional services’ in section 106XA are also clarified to include ‘a person who has previously been a member of a profession’ or ‘a person who has previously rendered professional services’.
    Health Insurance Amendment (Professional Services Review Scheme No. 2) explanatory memorandum
  2. Item 10 adds new paragraph 82(1)(e) at the end of subsection 82(1) of the Health Insurance Act to clarify the test for inappropriate practice where the practitioner rendered or initiated services as more than one kind of practitioner.
    Health Insurance Amendment (Professional Services Review Scheme No. 2) explanatory memorandum
  3. Instead of establishing a Committee based on a practitioner’s qualifications at the time of review, a Committee is instead established based on the capacity in which the practitioner provided services. If the person rendered or initiated services as a consultant physician or specialist in a particular speciality, or a general practitioner, the members of a Committee must also be that kind of practitioner. This will ensure that the membership of a Committee has experience and knowledge relevant to the services that are the subject of the review, even if the person under review is practising outside of the specialty in which they have qualifications.
    Health Insurance Amendment (Professional Services Review Scheme No. 2) explanatory memorandum
  4. Items 15 and 17 amend subsections 104(5) and 104A(4) to clarify the requirements for what information must be provided to the Committee, including that the person must provide a medical certificate, which was not previously an explicit requirement. The medical certificate must certify that the person has a medical condition preventing them from appearing or from giving evidence or answering questions and specify the period of time for which they are prevented from doing so. The medical certificate should provide sufficient information to allow the Committee to be satisfied as to the general nature of incapacity that is stopping the person from attending or answering questions. A generic medical certificate, for example, stating that a person is unfit for work is unlikely to be acceptable.
    Health Insurance Amendment (Professional Services Review Scheme No. 2) explanatory memorandum
  5. provide the Director with the power to extend the statutory timeframe of 12 months for deciding a matter if the person under review leaves Australia or if there are ongoing court proceedings in relation to the matter.
    Health Insurance Amendment (Professional Services Review Scheme No. 2) explanatory memorandum

Broader context for this bill

MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. already had a Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme to investigate inappropriate practiceThe legal test for conduct that the Medicare review system treats as unacceptable and can punish or refer for further action., and Parliament had made an earlier round of 2023 reforms, but gaps still remained when practitioners lost registration, worked across different fields, missed hearings on medical grounds or delayed matters through court action or overseas travel. The bill responded by tightening those weak points so MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. oversight could keep pursuing past conduct and use better-matched review panels, and it became law in November 2023 as part of a broader push to protect public health spending.

  1. September 2023

    Earlier 2023 MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. integrity changes pass Parliament

    Speakers said this bill built on the Health Insurance Amendment (Professional Services Review Scheme) Act 2023The earlier 2023 reform law that the bill says it builds on to close remaining gaps in the PSR scheme., which had already made priority changes to strengthen the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme.

    Hansard ↗
  2. 19 Oct 2023

    Government introduces a second bill to close remaining PSRThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. gaps

    The minister said MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. dollars were precious and the bill was needed to fix ambiguities in the review scheme so suspected inappropriate practiceThe legal test for conduct that the Medicare review system treats as unacceptable and can punish or refer for further action. could still be examined properly.

    Hansard ↗
  3. 14 Nov 2023

    House debate frames the bill as strengthening MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. compliance

    Members described the bill as a practical step to improve the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals.'s ability to investigate health practitioners and maintain confidence in MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. billing rules.

    Hansard ↗
  4. 15 Nov 2023

    House passes the bill

    The third reading was agreed to, completing the bill's passage through the House of Representatives.

    Parliamentary timeline ↗
  5. 17 Nov 2023

    Parliament passes the bill

    The Senate agreed to the third reading and the bill was finally passed in the same form by both Houses.

    Parliamentary timeline ↗
  6. 24 Nov 2023

    Royal AssentThe final step that turns a passed bill into an Act of Parliament. makes the changes law

    Royal AssentThe final step that turns a passed bill into an Act of Parliament. turned the bill into an Act, completing the 2023 legislative update to the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 19 Oct 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 19 Oct 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 14 Nov 2023

The bill reached this recorded parliamentary step.

Sent to Federation Chamber for debate 14 Nov 2023

The bill reached this recorded parliamentary step.

Referred to Federation Chamber

Federation Chamber debate 14 Nov 2023

The bill reached this recorded parliamentary step.

Second reading debate

House second reading agreed 14 Nov 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber 15 Nov 2023

The bill reached this recorded parliamentary step.

Reported from Federation Chamber

House third reading agreed 15 Nov 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 15 Nov 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 15 Nov 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 17 Nov 2023

The bill reached this recorded parliamentary step.

Senate second reading agreed 17 Nov 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 17 Nov 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 17 Nov 2023

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 24 Nov 2023

The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.

The main case against this bill

The main criticism was not about the bill’s MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. integrity goals but about how the government handled the reform, with concerns that consultation on the changes was too limited. That process concern was raised by Coalition speakers Sussan Ley and Anne Ruston, but it did not amount to opposition to the bill itself.

No party represented in the debate opposed the bill, and criticism stayed focused on consultation and process.

Poor consultation and process

Coalition speakers said the government had not consulted properly on the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. reforms, arguing the process around the bill was limited even though the underlying amendments were sensible.

Raised by Coalition speakers including Sussan Ley and Anne Ruston Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

15 Nov 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

17 Nov 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Ged Kearney

Australian Labor Party • MP 19 Oct 2023

Kearney supports the bill, saying it will clarify and strengthen the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. Scheme so MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. compliance can work more effectively.

Read in Hansard ↗
Lead supporting voice Supports

Anne Ruston

Liberal Party • Senator 17 Nov 2023

Ruston says the coalition will support the bill because it makes sensible changes to improve the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme and protect MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect.’s integrity, but she criticises Labor for limited consultation and poor process around the reforms.

Read in Hansard ↗
Lead voice Supports

Malarndirri McCarthy

Australian Labor Party • Senator 15 Nov 2023

Malarndirri McCarthy supports the bill, saying it will close ambiguities in the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme and strengthen MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect.’s integrity.

Read in Hansard ↗
Lead voice Supports

Sussan Ley

Liberal Party • MP 14 Nov 2023

Ley says the coalition will support the bill because it makes sensible changes to improve the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme and protect MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect.’s integrity.

Read in Hansard ↗

All speeches by bloc

Labor

4 speakers · 5 contributions · 4 support

  1. Mike Freelander Freelander supports the bill and recommends it to the House, saying it is an important administrative reform that will help the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme hold inappropriate or fraudulent practitioners to account.
    “This bill is mainly administrative, but it is an important one—not only making sure that our practitioners are aware of the need to practice appropriately and provide high-quality care but also assuring the general public that, when they do see a health practitioner, they are able to know that that practitioner has mechanisms in place and that he can be held accountable for inappropriate practice.”

    Australian Labor Party • MP • 14 Nov 2023

    Read the full speech in Hansard ↗
  2. Anthony Chisholm Chisholm supports the bill, saying it will strengthen the Professional Services ReviewThe Medicare review system that checks whether a health practitioner has used Medicare in an improper way and can lead to sanctions or referrals. scheme and improve MedicareAustralia's public health insurance scheme, which pays benefits for many medical services and is the main system this bill is trying to protect. integrity by clarifying committeeA panel of medical peers that hears some reviews and decides whether the practitioner's conduct counted as inappropriate practice. qualifications and administration.
    “The bill will also make several other amendments to clarify and improve the administration of the PSR scheme. Reducing ambiguity will ensure that a person under review is aware of how the PSR scheme should apply as well as enable the PSR to perform its role more effectively. The PSR must be able to work efficiently to achieve its objective to protect patients, the community and the Commonwealth from the risks and costs of inappropriate practice.”

    Australian Labor Party • Senator • 17 Nov 2023

    Read the full speech in Hansard ↗

Coalition

2 speakers · 2 support

Full record

Full chat