House debates

Monday, 22 February 2010

Health Insurance Amendment (Diagnostic Imaging Accreditation) Bill 2009

Second Reading

8:22 pm

Photo of James BidgoodJames Bidgood (Dawson, Australian Labor Party) Share this | Hansard source

I rise to speak in favour of the Health Insurance Amendment (Diagnostic Imaging Accreditation) Bill 2009. The bill amends the Health Insurance Amendment (Diagnostic Imaging Accreditation) Act 2007 to provide transitional arrangements to allow practices with, firstly, non-radiology services—for example, ultrasound—and, secondly, a combination of non-radiology and radiology services not accredited under the Diagnostic Imaging Accreditation Scheme, known as ‘the scheme’, to register for deemed accreditation in the three months prior to the commencement of the stage 2 scheme, which will commence on 1 July 2010. Registering through the transitional arrangements for deemed accreditation from 1 April 2010 will ensure that Medicare eligibility continues from 1 July 2010 when, for the purpose of Medicare, all diagnostic imaging services listed in the Diagnostic Imaging Services Table of the Medicare Benefits Schedule need to be rendered from a site accredited under the scheme.

Stage 2 of the scheme is being developed and implemented within the existing departmental program budget, and the cost update to the Medicare Australia payment system for 2009-10 to 2013-14 is $649,000, GST exclusive. The cost of participating in the stage 2 scheme and registering for deemed accreditation will be met by practices providing non-radiology services, as was the case for stage 1.

The department has consulted with all relevant government agencies, including the Office of Parliamentary Counsel, the Attorney-General’s Department, the Department of the Prime Minister and Cabinet and Medicare Australia. Around 1,400 practices providing non-radiology services will enter the stage 2 scheme through the transitional arrangements by registering for deemed accreditation from 1 April 2010 up to and including 30 June 2010. The bill will need to be passed and receive assent during the 2010 parliament. This will ensure a smooth transition for the 1,400 practices into the scheme.

This scheme will be very beneficial to the people of Dawson, where X-ray imaging and diagnostic services are at a premium. The impact of the stage 2 scheme on families in rural and regional areas will be positive, as a standard level will be assured for a diagnostic imaging service irrespective of where or by whom the diagnostic imaging service is provided. Back in February 2008, Mackay was hit by the most dramatic floods in 90 years and the local bulk-billing X-ray service was completely knocked out. I would like to put on record the fact that this government moved swiftly and effectively to enable other private practice X-ray facilities in the area to provide bulk-billing for those services, greatly helping families on minimal incomes. That was very important assistance.

It is important that we have continuity in this area. Section 16EA coupled with the provisions in division 5 part IIB of the Health Insurance Act contain the overarching legislative framework for the Diagnostic Imaging Accreditation Scheme, which is being implemented in two stages. The stage 1 scheme commenced on 1 July 2008 and covered only radiology services. This stage 2 scheme, which will commence on 1 July this year, will cover all diagnostic imaging services—that is, both radiology and non-radiology services—listed in the Health Insurance (Diagnostic Imaging Services Table) Regulations 2009, the DIST. This means that from 1 July, for the purpose of Medicare, all diagnostic imaging services in the DIST will need to be carried out at an accredited or deemed accredited practice to be eligible for Medicare benefits.

The bill will amend the DIA act to provide transitional arrangements that will allow practices providing these non-radiological services and a combination of non-radiology and radiology services not accredited under the scheme and in operation before 1 July 2010 to register for and enter into stage 2 of the scheme. As from 1 April 2010, the transitional arrangements proposed in the bill for unaccredited practices that provide non-radiology services will provide: firstly, a registration period which will operate for around three months, from 1 April to 30 June, giving practices deemed accreditation for a period of 12 months; and, secondly, an application process to allow 12 months, from 1 July 2010 to 1 July 2011, for a deemed accredited practice to submit documentary evidence and for an accreditation decision to be made by an approved accreditor.

The stage 1 scheme was introduced on 1 July 2008 to ensure that Medicare funding was directed to radiology services that are safe, effective and responsive to the needs of healthcare consumers. The stage 1 scheme only applied to sites rendering radiology services. These sites accounted for around 84 per cent of the total number of diagnostic imaging services performed annually under Medicare. Non-radiology services such as cardiac, ultrasound, cardiac angiography, obstetric, gynaecological ultrasound and nuclear medicine imaging services accounted for around 16 per cent of diagnostic imaging services performed annually under Medicare. These were not included in stage 1 of the scheme.

Debate interrupted.

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