A bill currently before the House of Representatives will, among other things, change the name of the legislation governing Medicare.
Under proposed new laws, the chief executive of Medicare will be able to arrange for computer programs to take on some of the compliance work associated with the health system’s various Practice Incentive Programs.
The provision is part of the Health Insurance Amendment (Incentive Payments and Other Measures) Bill 2026, which seeks to create a clear and consistent legislative framework for the administration, compliance and oversight of all commonwealth health incentive payment programs.
Speaking at the bill’s second reading on Wednesday, health minister Mark Butler said the reforms will not alter the underlying policy settings of the existing programs like the eligibility criteria or the payment amounts.
Providers currently receiving payments through a PIP program will not need to reapply.
“It enables the use of automated administrative processes, supported, of course, by appropriate safeguards, transparency and oversight mechanisms,” Mr Butler said.
“These provisions are designed to support efficient, high-volume administration while maintaining accountability and review rights.
“Australians rightly expect care when technology is used in decision-making. That’s why a cautious and deliberate approach is taken for the automation of administrative processes.
“The bill establishes structured review mechanisms, including internal reconsideration processes and access to independent merits review by the Administrative Review Tribunal. This ensures that providers have clear avenues to challenge decisions that affect them.
“The bill also strengthens information-sharing arrangements to support administration and program integrity, while maintaining appropriate protections for personal information.”
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According to the bill’s explanatory memorandum, the automated decision making will include “parts” of administrative actions that lead up to a decision made by a human delegate.
The specific actions will be clarified after the bill is passed.
“The incentive payment programs administrative actions that may be automated are being detailed in the incentive payment programs rules instead of primary legislation as they will differ from program to program, particularly around the use of automation to assess eligibility criteria for an incentive payment program or payment,” the explanatory notes read.
“Some incentive payment programs administrative actions that are expected to be automated under this subdivision will also only be set out in the incentive payment programs rules, for example the calculation of payments.
“As disallowable instruments, the incentive payment program rules would also be subject to parliamentary scrutiny to ensure accountability in deciding to specify a provision that could be subject to computer-based decision making.”
The bill has a few other meaningful amendments.
One of these is to change the short title of the Health Insurance Act 1973, the law which has governed all of Medicare for the last half century.
If it passes, the legislation will simply be known as the Medicare Act.
While the name change is likely to pull at the nostalgia strings of Australia’s health policy nerds, Mr Butler did mince his words.
“This change better reflects the scope and purpose of the legislation and improves public recognition and understanding of the act,” he told parliament.
“The renaming will occur following a transition period to allow for consequential amendments across Commonwealth, state and territory frameworks.”
