This bill became law on Dec 5th, 2022.
Health, care & disability
Medicare compliance deals can now be made not just with individual practitioners but also with companies and other non-practitioner people being reviewed, so more cases can be settled without a full Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. committee process.
Incorrect, fraudulent and inappropriate Medicare, PBSThe government medicine subsidy scheme that shares the bill's debt recovery and compliance rules with Medicare. and dental claims, plus gaps in Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. powers over companies and other non-practitioners, left some cases harder to settle and enforce. The bill expands agreements and sanctions to those entities and aligns debt recovery rules across Medicare, PBSThe government medicine subsidy scheme that shares the bill's debt recovery and compliance rules with Medicare. and child dental payments.
Medicare already had compliance and debt-recovery systems for health payments, but they were geared mainly to individual practitioners even as corporations became more involved in delivering and billing care, and reported losses from fraud and billing errors sharpened pressure to tighten enforcement. The bill responded by extending Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. agreements and sanctions to companies and other non-practitioners and by aligning debt review rules across Medicare, the PBSThe government medicine subsidy scheme that shares the bill's debt recovery and compliance rules with Medicare. and child dental payments, before Parliament passed it and it received Royal AssentThe final step that turns the bill into an Act of Parliament. in December 2022.
The main reservation was that tougher Medicare compliance powers should not end up treating honest doctors and clinics with suspicion or adding unnecessary burden to legitimate providers. That concern was limited and conditional rather than outright opposition, raised by supportive speakers including Monique Ryan and Gavin Pearce while no party represented in the debate opposed the bill.
Senator Katy Gallagher introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 05 Dec 2022
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
124 days
From introduction to the latest recorded parliamentary step
Meaning
Medicare compliance deals can now be made not just with individual practitioners but also with companies and other non-practitioner people being reviewed, so more cases can be settled without a full Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. committee process.
Companies under Medicare review can be required to send corrective guidance to their staff or contractors who provide or bill services, to help stop the same bad claiming from happening again.
People and companies who are not practitioners can now be fined if they ignore Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. notices to attend hearings, answer questions, or hand over documents, and courts can order companies to comply.
If someone breaks a Medicare compliance agreement, the Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. Director can publish their name, profession, conduct, and agreed actions, which adds reputational pressure to repay and comply.
Across Medicare, the Pharmaceutical Benefits SchemeThe government medicine subsidy scheme that shares the bill's debt recovery and compliance rules with Medicare. and the Child Dental Benefits ScheduleThe Commonwealth dental payment program for eligible children, which the bill also brings into the same debt recovery rules., tribunal review of debt and penalty decisions is tied to garnishee action so the same debt is not reviewed repeatedly.
The Bill ensures all types of persons under review by the PSR, including bodies corporate, may enter into written agreements with the Director. The Bill also enables these written agreements with the Director to specify certain additional actions that may take effect in relation to the person under review. Transitional provisions provide the Director with the flexibility to enter into agreements with non-practitioner persons under review who are referred to a Committee in the 18 months prior to commencement of the Bill.Health Legislation Amendment (Medicare Compliance and Other Measures) explanatory memorandum
This item inserts new paragraph 92(2)(d) which provides for a new action that may be specified in a written agreement made under subsection 92(1). If any services under review were rendered or initiated by an associated person (discussed in item 18 below), the person under review must give specified classes of associated persons specified information about the appropriate provision of services, or that is relevant to preventing inappropriate practice in the provision of services, in a specified form within a specified period, and must also provide the CEM with evidence that they have undertaken such action.Health Legislation Amendment (Medicare Compliance and Other Measures) explanatory memorandum
The Bill introduces certain sanctions to be applied to persons under review who are not practitioners. In particular, the Bill extends the application of existing criminal offences to all persons (other than persons under review who are practitioners) who fail to produce documents to the Director or to a Committee after receiving a notice. The sanctions include a civil penalty for bodies corporate who do not produce documents or give information when required, and the ability for the Director to seek Court orders requiring the production of documents. The Bill introduces criminal offences where persons under review (other than practitioners) fail to attend and/or give evidence at a Committee hearing pursuant to a notice.Health Legislation Amendment (Medicare Compliance and Other Measures) explanatory memorandum
This item inserts new subsection 106ZPR(1A) before subsection 106ZPR(1). New subsection 106ZPR(1A) provides that the Director may cause to be published, in such way as the Director thinks most appropriate, the particulars mentioned in subsection 106ZPR(1), if the circumstances set out in subsection 106ZPR(1A) exist. The particulars are, in brief, the name and address of the person under review, their profession or specialty (or if the person is not a practitioner, the profession or speciality of the person that rendered or initiated the relevant services), and the nature of the conduct and actions specified or directions given in relation to the relevant written agreement or final determination.Health Legislation Amendment (Medicare Compliance and Other Measures) explanatory memorandum
Amendments set out in Part 2 are intended to prevent a debtor from lodging multiple applications for review in the AAT, where multiple garnishee notices are required to recover a single debt. For example, where there are insufficient funds in one account to recover the full debt amount, a second garnishee notice is required to recover the remaining debt amount. Similarly, the amendments clarify that a debtor may lodge only one application for AAT review of an assessment of the debtor’s liability to pay administrative penalties.Health Legislation Amendment (Medicare Compliance and Other Measures) explanatory memorandum
Context
Medicare already had compliance and debt-recovery systems for health payments, but they were geared mainly to individual practitioners even as corporations became more involved in delivering and billing care, and reported losses from fraud and billing errors sharpened pressure to tighten enforcement. The bill responded by extending Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. agreements and sanctions to companies and other non-practitioners and by aligning debt review rules across Medicare, the PBSThe government medicine subsidy scheme that shares the bill's debt recovery and compliance rules with Medicare. and child dental payments, before Parliament passed it and it received Royal AssentThe final step that turns the bill into an Act of Parliament. in December 2022.
Medicare fraud and billing errors are reported as costing $7 billion a year
An AFR report said fraud, abuse and billing mistakes were costing taxpayers at least $7 billion annually, putting Medicare compliance in sharper public focus.
Australian Financial Review ↗Government introduces the Medicare compliance bill
The bill was introduced to strengthen protections for Medicare integrity by amending the Health Insurance, National Health and Dental Benefits Acts.
Parliamentary timeline ↗Government says corporations increasingly influence healthcare billing and delivery
During debate, the government said compliance powers needed updating because corporations were increasingly involved in and influencing the provision of healthcare services.
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, clearing the way for new compliance tools covering companies and other non-practitioners.
Parliamentary timeline ↗Royal AssentThe final step that turns the bill into an Act of Parliament. makes the compliance changes law
Royal AssentThe final step that turns the bill into an Act of Parliament. completed the bill's passage and turned the expanded Medicare compliance and aligned debt-recovery measures into an Act.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill was listed for Senate scrutiny committee consideration after introduction.
Considered by scrutiny committee
APH bill page notesThe bill reached this recorded parliamentary step.
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
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
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
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns the bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main reservation was that tougher Medicare compliance powers should not end up treating honest doctors and clinics with suspicion or adding unnecessary burden to legitimate providers. That concern was limited and conditional rather than outright opposition, raised by supportive speakers including Monique Ryan and Gavin Pearce while no party represented in the debate opposed the bill.
Criticism focused on provider burden and the bill's limited scope, not on rejecting stronger compliance in principle.
Risk of burdening legitimate providers
Supporters warned the stronger compliance regime should not create extra pressure for honest doctors, clinics or other health providers who are trying to bill correctly. The concern was that broader powers and enforcement tools could catch legitimate practice in a heavier compliance net if used poorly.
Only a limited fix to bigger Medicare problems
Some speakers argued the bill was useful but narrow, saying it mainly tightened compliance and debt recovery while leaving larger structural problems in Medicare unresolved. The worry was not the bill's goal, but that it tinkered at the edges instead of addressing deeper pressures on general practice and the health system.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
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.
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.
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.
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.
Parliamentary debate
Start here — lead voices
Gallagher supports the bill, saying it will strengthen Medicare compliance and help recover debts from inappropriate billing.
Read in Hansard ↗McCormack supports the bill, saying it is an important and largely uncontroversial measure that strengthens Medicare compliance and debt recovery.
Read in Hansard ↗Ryan supports the bill, saying the compliance changes are a small but appropriate step to protect Medicare’s integrity.
Read in Hansard ↗Freelander supports the bill and says it is a useful but limited step to strengthen Medicare compliance and debt recovery.
Read in Hansard ↗All speeches by bloc
4 speakers · 5 contributions · 4 support
“This Bill strengthens Medicare compliance powers and will assist with the investigation and recovery of debts associated with inappropriate Medicare billing.”Read the full speech in Hansard ↗
“I commend this legislation, but it is only part of the job. I know that the Albanese Labor government will continue the changes in health care that we need to deal with our ageing and growing population.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Ged Kearney, including an amendment-moving contribution. They are grouped here so the speaker is listed once.
Second reading speech
Ged Kearney supports the bill, saying it strengthens Medicare compliance powers and helps protect the integrity and financial viability of the system. She argues the changes are needed to deal with inappropriate billing, including corporate conduct, and to improve debt recovery and enforcement.
“The bill protects the integrity of Medicare for all Australians, and I commend the bill to the House.”Read this contribution in Hansard ↗
Moved amendment
Kearney supports the bill and says it strengthens Medicare compliance powers, especially by extending the Professional Services ReviewThe Medicare review system that looks at whether a provider has engaged in inappropriate practice and can lead to agreements, committee review, or sanctions. to corporations and adding practical tools for agreements, sanctions, and debt recovery. She presents it as a sensible update that protects practitioners while improving the system's ability to deal with inappropriate practiceThe conduct the review system is trying to detect and stop, such as incorrect or fraudulent Medicare claiming..
“The bill both strengthens and adds flexibility to compliance powers, especially the ability of the Professional Services Review to address the inappropriate practice of corporations. In essence, the bill extends provisions that are currently applicable only to individual practitioners to corporations and other nonpractitioners. The new provisions allow the director to come to an agreement with a body corporate or nonpractitioner as an alternative to a lengthy review by a committee. This is a valuable and practical addition to the PSR's toolkit, facilitating confidential agreements with corporations while still ensuring that the PSR properly addresses inappropriate practice.”Read this contribution in Hansard ↗
“The Health Legislation Amendment (Medicare Compliance and Other Measures) Bill 2022 both strengthens and adds flexibility to compliance powers, especially the ability of the Professional Services Review, the PSR, to address the inappropriate practices of corporations. In essence, the bill extends provisions that are currently applicable only to individual practitioners, corporations and other nonpractitioners. The new provisions allow the director to come to an agreement with a body corporate or a nonpractitioner as an alternative to a lengthy review by a committee. This is a valuable and practical addition to the PSR's toolkit, facilitating confidential agreements with corporations while still ensuring that the PSR properly addresses inappropriate practice.”Read the full speech in Hansard ↗
3 speakers · 3 support
“This is important proposed legislation, and I'm glad it's been brought to the House by the minister.”Read the full speech in Hansard ↗
“Once again the Albanese Labor government is demonstrating its commitment to passing copies of coalition legislation. In doing so the government has recognised that the coalition were leaders when it comes to this important healthcare policy and improving the sustainability of Australia's world-class health system for the benefit of all Australians. The opposition will support the passage of this legislation.”Read the full speech in Hansard ↗
“This bill amends the Health Insurance Act 1973, the National Health Act 1953 and the Dental Benefits Act 2008 to protect the viability of Medicare. The bill supports the integrity of the Medicare Benefits Schedule, the Pharmaceutical Benefits Scheme and the Child Dental Benefits Schedule by addressing inappropriate practice as well as protecting payment integrity, encouraging compliance with claiming requirements and supporting consistency.”Read the full speech in Hansard ↗
1 speaker · 1 support
“We need Medicare—that wonderful universal scheme—to be better, smarter, more generous and more suited to the 21st century. We need to stop tinkering around the edges. We need a better and clearer vision of what we can achieve together. I commend this bill to the House.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns the bill into an Act of Parliament., turning the bill into an Act.
Senate Standing Committee for the Scrutiny of Bills
Considered by scrutiny committee
The bill was listed for Senate scrutiny committee consideration after introduction.
The APH bill page records that the bill was considered by the Senate Standing Committee for the Scrutiny of Bills in Scrutiny Digest 6 of 2022.
APH bill page notes
