The Minister for Health, the Hon Greg Hunt MP, has decided to defer the National Joint Replacement Registry (NJRR) levy date to 31 March 2021 to provide for an annual increase in the levy for ongoing contemporary cybersecurity measures, and the inclusion of annual indexation into the levy formula.
See the draft 2020–21 Cost Recovery Implementation Statement (CRIS). Comments from affected stakeholders are welcome via email to firstname.lastname@example.org by 8 December 2020.
The draft CRIS includes the financial results for 2019–20, changes to the financial estimates to reflect the proposed increase to the levy amount, the levy date for 2020–21 and key forward dates to report on the NJRR cost recovery arrangements in accordance with the Australian Government’s cost recovery policy.
The Department has an annual funding agreement with the Australian Orthopaedic Association (AOA) to maintain the NJRR. The current agreement between the Department of Health and the AOA is for the period 2019–2023.
In line with requirements under the grant agreement, in 2020 the department (in consultation with the AOA) conducted a review of the current funding to AOA for core activities to administer and maintain the NJRR.
The review found that current funding levels were inadequate to ensure important cybersecurity measures, vital for protecting confidential data. The review found that an increase to the AOA for ongoing contemporary cybersecurity measures was warranted at $110,000 per annum. It also found that annual indexation should be incorporated into the levy formula.
The levy date will move from 30 November 2020 to 31 March 2021 for this year only, to allow time for consultation with affected stakeholders on the proposed increase to the levy amount and to ensure that sponsors are prepared for the new levy date.
The anticipated increase to levy amount is almost $420,000 over 3 years, which is approximately a 6% increase from the previous levy amount as paid in 2019–20.
Following consultation, the Private Health Insurance (National Joint Replacement Register Levy) Rules 2015, will be updated to reflect these changes to cost recovery arrangements.