Addendum To The National Health Reform Agreement

An amendment to Annex G (Business Rules) states that the Commonwealth, as the regulatory authority for private health insurers, will annually verify compliance with the minimum standards set out in the New Addendum, the Rules and the Private Health Insurance Act 2007 (Cth), notify all relevant results to the COAG Health Council and publish the review. 8 National Funding Ceiling Means the Commonwealth Resource Growth Ceiling for public hospital services for all States, which is a percentage per year and if the context so requires, including the application of the funding ceiling provided for in this Agreement. Parties Are the signatories to this Agreement, the Commonwealth and each State and Territory. Public Hospital Services means the services, functions and activities funded by the Commonwealth under this Agreement, including services subject to activity-based funding, block funding or public health activities. Transfer means the transfer of the actual volume of ABF services within a State with the estimation of the quantities of ABF services provided by a State in accordance with clauses B59 to B64. Redistribution means the allocation of the remaining funds under the national funding cap to states whose unlimited Commonwealth funding right has exceeded their “soft funding cap” under clause I27. The new addition also provides that the administrator as of July 1, 2020, cases that should not have qualified for the payment of Medicare, PBS or private health insurance should be reported to the appropriate Commonwealth representative in order to support compliance activities through mechanisms outside the new warrant officer. The commercial rules relating to the comparison of data are defined by the administrator in consultation with the parties. The NHRA codifies the shared intention of Commonwealth, state and territory governments to cooperate in partnership to improve health outcomes for all Australians and ensure the sustainability of Australia`s health system. The first NHRA was signed in 2011 and introduced significant changes in the way public hospitals were to be funded by Commonwealth, state and territorial governments. The most significant change was the shift from block funding to a predominantly “activity-based” (ABF) funding model.

In July 2017, certain changes were made to the NHRA with regard to public hospital funding from 1 July 2017 to 30 June 2020. These changes maintained the ABF model and focused on reducing unnecessary hospitalizations and improving the safety and quality of services. Through this agreement, we will ensure that Australia`s healthcare system remains one of the best in the world and provides the best possible health outcomes for Australians.

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