64Recovery of overpayments

64 Recovery of overpayments

(1) This section applies if an amount is paid by way of a Commonwealth contribution and: (a) the amount of Commonwealth contribution is not payable; or (b) the amount paid is greater than the amount of the Commonwealth contribution that was payable. (2) The amount overpaid is: (a) the whole of the amount paid if paragraph (1)(a) applies; or (b) the difference between the amount that was paid and the amount that was payable if paragraph (1)(b) applies. (3) The amount overpaid is a debt due to the Commonwealth by the liable person. For this purpose the liable person is: (a) if the Commonwealth contribution was a Level 1 Commonwealth contribution or a run‑off cover Commonwealth contribution—the insurer to which the payment was made; or (b) if the Commonwealth contribution was a Level 2 Commonwealth contribution—the person who is the liable person under subsection 23(2).

Note 1: Paragraph (b)—if the Level 2 Commonwealth contribution is or was not dealt with in accordance with whichever of subsections 22(3) and (4) applies by the time required by subsection 22(5), the whole amount of the contribution is a debt owed by the recipient, and no amount is recoverable under this section (see subsections 22(6) to (8)).

Note 2: Paragraph (b)—if:

(a) the recipient and the midwife referred to in subsection 22(1) are not the same person; and
(b) the midwife becomes the liable person;

then (subject to subsection 23(3)), the recipient ceases to be the liable person, and the amount overpaid must instead be recovered from the midwife.

(4) The amount overpaid may be recovered: (a) by action by the Chief Executive Medicare against the liable person in a court of competent jurisdiction; or (b) by deduction from the amount of a Level 1 Commonwealth contribution, a Level 2 Commonwealth contribution or a run‑off cover Commonwealth contribution payable to the liable person; or (c) under section 65. The total amount recovered must not exceed the amount overpaid.