Document ID: chunk:federal_register_of_legislation:C2004A00666:clause:1_73bdd
Version: federal_register_of_legislation:C2004A00666
Segment Type: clause
Provision Reference: sch 1 cl 73BDD
Character Range: 5469–7924

73BDD  Registered organizations may apply to Minister for approval of gap cover schemes

 (1) A registered organization may, at any time, prepare a gap cover scheme.

 (2) Subject to regulations made for the purpose of this section, the registered organization may apply to the Minister for approval of such a scheme. The scheme is of no effect unless an approval by the Minister is in force in relation to it.

 (3) The Minister's approval of such a scheme does not limit the application of the Trade Practices Act 1974 or the Competition Code of any participating jurisdiction (within the meaning of section 150A of that Act).

 (4) Any arrangement that is entered into for the purposes of such a scheme does not constitute a hospital purchaser‑provider agreement, a medical purchaser‑provider agreement or a practitioner agreement.

 (5) The regulations must provide, in relation to the approval of gap cover schemes by the Minister under this section, for:
 (a) the form and content of, and the manner of dealing with, applications for approval of such schemes; and
 (b) the criteria to be taken into account by the Minister in determining whether to approve such schemes; and
 (c) the power of the Minister to impose conditions on the operation of such schemes and to vary such conditions; and
 (d) an index or method for measuring the inflationary impact of gap cover schemes on the total cost of treatment and the rise in private health insurance premiums.

 (6) Without limiting the criteria to be specified in regulations made for the purposes of paragraph (5)(b), criteria must include the following:
 (a) the provision of particulars sufficient to demonstrate, to the satisfaction of the Minister, that the operation of the gap cover scheme for which approval is sought will not have an inflationary impact;
 (b) the requirement that a person providing hospital treatment or associated professional attention under a gap cover scheme for which approval is sought must disclose to the insured person any financial interest that the first-mentioned person has in any products or services recommended or given to the insured person.

 (7) The Minister must not approve a gap cover scheme unless the scheme provides for insured persons to be informed in writing, where the circumstances make it appropriate, of any amounts that the person can reasonably be expected to pay for treatment and the insured person acknowledges receipt of the advice.